Multi-car insurance policies

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A multi-car insurance policy may be right for you if you are seeking to insure more than one vehicle in your household. Most insurers offer a considerable discount on your total auto premium when you insure two more vehicles on your policy. In some cases, a multi-car policy may diminish the extra cost to insure a teenage driver on an individual policy. Depending on the carrier, there may be other benefits as well.

What is a multi-car policy?

Most auto insurance companies offer multi-car (or multiple-car) insurance policies. While insuring at least two or three vehicles is usually the standard, each provider might have its own limits to the number of vehicles coverable on a single policy. Multi-car policies are available through almost every insurance carrier and usually with an available discount, often categorized under customer loyalty.

Each company is likely to have its own requirements for multi-car insurance policies. Some only require that all covered vehicles be located at one address, while other carriers factor in the insured’s relationship to the policyholder. It never hurts to ask carriers about their specific criteria for multi-car insurance policies or whether you can add the vehicle of another person in your home to your policy.

Potential benefits and drawbacks of multi-car insurance policies

Pros Cons
Financial savings with multi-car discount One renewal date with a total premium due at once, which could be more expensive
A single premium payment Not all insurers offer the same discount amount
Shared deductible One high-risk driver may impact the entire policy

While a multi-car insurance policy could save families with good driving histories significantly on premiums, opting for one may not be ideal if one or more drivers have poor driving records. In some instances, including a high-risk driver on your policy may increase the overall premium, potentially discounting the additional savings. Consider speaking with your insurance provider to see how different circumstances could affect your rates.

What discount can you receive for a multi-car insurance policy?

You will generally see discounts up to 25% of the total premium for adding a multi-vehicle policy. However, each provider’s exact discounts may vary based on your coverage and other factors. Here are a few companies that offer discounts for insuring more than one vehicle:

How much does a multi-car insurance policy cost?

The average cost of car insurance is $1,674 annually for full coverage, but varies significantly from carrier to carrier and between individuals. Rates are influenced by multiple factors such as age, driving history, location and the condition of the car.

Because multi-policy types are so common, getting several multi-car insurance quotes is relatively straightforward. Usually, car insurance companies will ask you for the following information:

  • Make, model and year of the cars you want to include on the policy
  • Vehicle identification number (VIN)
  • Odometer reading for each of the vehicles
  • The name, date of birth and driver’s license numbers of each driver to be added to the policy

What coverage do you need on your multi-car insurance policy?

Most states require that drivers carry some level of liability insurance. On the other hand, requirements for carrying certain levels of collision or comprehensive coverage are not imposed at the state level. In most situations with a multi-car insurance policy, drivers need to cover each vehicle with the same amount of liability or uninsured motorist coverage.

Typically, you are free to insure each vehicle with different levels of collision and comprehensive coverage. However, you may want to keep in mind that the incidents and amounts you are covered for could vary if each vehicle includes different coverages.

Frequently asked questions

Which company offers the cheapest multi-car insurance policy?

While nearly every company offers some form of multi-car discount, it is impossible to say which company offers the most affordable for each kind of driver. Because there are so many factors that impact car insurance prices, the cheapest car insurance company offering a multi-car policy may also be one offering you important coverages in other areas, like for ridesharing. Experts often suggest obtaining quotes from several insurers to find the best company for you.

What are stacked insurance limits?

Stacked insurance can be an added benefit with a multi-car policy. In addition to the money saved from discounts, stacking may allow you to combine or “stack” the uninsured motorist or underinsured motorist coverage limits that you have on each of your vehicles. By doing this, you can typically increase your overall limits by considerable amounts.

Is it worth getting multi-car insurance?

Having a multi-car policy could allow you to easily manage coverage for multiple vehicles stored at the same household or even save on your overall premium. However, it may not always be the cheapest way to insure vehicles. For example, if one or more drivers in a family have poor driving histories, the increased risk may cause premiums to be higher than the cost of separate policies. One of the best ways to determine which policy type suits your situation is to compare the price of similar coverages from different providers.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.