Maybe you just got a new car and need to add it to your insurance, or maybe your child has started driving, or maybe your boyfriend or girlfriend has just moved in with you. You might be able to reduce the cost of your auto insurance premiums by purchasing a policy that covers multiple vehicles. When it comes to multi-vehicle insurance policies, there are a few unexpected benefits as well as potential drawbacks, in addition to the lower rate that is offered. Let's take a look at what a multi-car insurance policy is, how to get one, how much money it could potentially save you, and other relevant information.
Key Takeaways
- By including coverage for multiple vehicles under the umbrella of a single insurance plan, multi-vehicle insurance helps drivers save money on their car insurance premiums.
- There may be a variety of criteria that must be met before an insurer will grant a multi-vehicle discount.
- Check the multi-car rates offered by a number of different insurers to see if you can get a better deal if you insure two or more vehicles under the same plan.
- It is a good idea for the parents of teens to inquire with their insurance provider about how vehicles are "assigned" to drivers within the family and how this affects the premium cost.
What exactly is meant by the term "multi-car insurance policy"?
A policy that covers multiple automobiles, trucks or other types of vehicles is known as a multi-car insurance policy. You can realise cost savings by grouping your vehicles together. This kind of policy may also be referred to as a "schedule of vehicles" policy or a "multiple vehicle policies." In most cases, only "passenger" vehicles are eligible for coverage under these policies. However, if you combine multiple types of vehicles under one policy, such as an RV, boat, motorcycle, or scooter, your insurance company might give you a discount. TIP: You also have the option to bundle different types of coverage together in a single policy, such as renters insurance and auto insurance, homeowners insurance and auto insurance, or a personal umbrella policy and auto insurance. If you insure both your motorcycle and your car under the same policy, you could be eligible for a discount known as a multi-policy discount.How do I get a policy that covers more than one vehicle?
Call the toll-free number provided by your insurance company and ask, "Can I add another vehicle to my insurance policy?" This is the first step in obtaining a multi-car insurance policy. You can also try using the online portal provided by your insurance company to add a new vehicle to your policy. To be clear, you are not getting a new policy; rather, you are updating your existing policy to add a car. This is the case even if you are shopping around for auto insurance. You will need to have the vehicle identification number (VIN), the registration, and possibly other information such as the vehicle's make, model, and mileage before you can call or log on online. If the vehicle was insured under a previous policy—say let's it was covered under your fiance's policy—be sure that you have information on the previous insurance carrier. The following are examples of requirements that may be imposed by insurance companies in order to purchase a multi-car insurance policy:- All of the vehicles are required to be registered at the same location.
- There is a cap on the number of cars covered by the policy.
- Automobiles that are owned by the same person are required.
- It is required that vehicles be parked overnight at the same address on a regular basis.
Insurance Policies Covering Multiple Vehicles and Other Drivers
Even if your family members do not live in the same household as you do, there are some insurance companies that will let you combine auto policies with them. However, it is highly unlikely that your friend's car will be covered under your insurance policy, and it is equally unlikely that their policy will cover your vehicle. Insurers typically have the expectation that only immediate family members will drive the vehicles covered under a multi-car policy. NOTE: The majority of insurance policies will permit other people to drive your vehicle on occasion as long as they have your permission to do so. Inquire with your auto insurer about any restrictions that may apply when lending your vehicle to other people. It is possible that you will not be able to include the vehicle of a live-in boyfriend or girlfriend, roommate, or even fiance in your insurance policy. You should ask your insurer to find out how often you drive each other's cars, and you should answer the question truthfully. If you've just gotten married or entered a domestic partnership, you might want to compare different insurance policies to determine which one offers better coverage at a lower cost while still putting the customer first. The next step is to inquire with the two different insurers about multi-vehicle policies in order to determine which one is the most appropriate for your circumstances.What Is the Price Breakdown for Buying Multiple Cars?
If you add a vehicle to your policy in the middle of the year, your premium will most likely go up. This is because adding a vehicle has the same effect on your premium as adding a driver or altering your coverage. When shopping for auto insurance, adding a second (or third) vehicle to your policy may qualify you for significant savings with certain providers. For instance, the majority of insurance companies in the state of Michigan provide a multi-vehicle discount, which typically falls within the range of 4 per cent to 30 per cent but can reach as high as 64 per cent. These savings can be equivalent to the savings you get on your policy for having a car that is equipped with anti-theft systems or airbags. Because there is such a wide range of variations in the discount, it is recommended that you compare insurance rates before making any changes to your existing policy if you are thinking about adding a car. NOTE: You should anticipate being required to carry the same level of liability insurance on all of your vehicles, including coverage for bodily injury, property damage to other people's vehicles, and uninsured/underinsured motorist protection (when required). Nevertheless, you have the option of selecting separate collision and comprehensive coverage for each of your vehicles. You also have the option of selecting a unique deductible amount for each vehicle.Other Benefits
With just one bill to pay each month, the multi-discount makes it a little bit simpler to manage all of your policies, in addition to saving you money. In addition, if you have a multi-vehicle policy, some states and insurance companies will let you "stack" your uninsured motorist coverage on top of your underinsured motorist coverage. You have the ability to multiply the coverage amount by the total number of vehicles covered by your policy when you have stacking coverage. If you choose this option, it may increase the amount of coverage you have in the event of an accident; however, it may also cost you more.Are There Any Drawbacks to Purchasing a Multi-Car Policy?
Although you'll receive a discount on your policy if you insure more than one vehicle, it will still cost you more to insure two vehicles than it would to insure just one. On the other hand, because of the discount, it's possible that your total cost won't be significantly higher than what it would be for a single vehicle. You should talk to your insurance provider about getting a multi-car policy if you have a teen driver in your household. Inquire about discounts for teenage drivers, particularly if your child has their own vehicle. There are times when insurance companies will assume that your teen is driving the most expensive vehicle you own, which could result in an increase in your premium. Some insurance providers will associate the teen driver with the vehicle that they will actually be operating. Due to the fact that each state has its own set of insurance rules and regulations, if you own multiple cars in more than one state, you may be required to purchase multiple policies and even work with multiple insurance companies. For instance, the minimum requirements for coverage can vary significantly from one state to the next, and some insurance companies do not offer coverage in more than one state.