In most cases, this option may serve well for households with several vehicles, even if they are driven by or registered to a different member of the family. If you want cheap auto insurance premiums you need to find smart ways to increase discounts. You should be able to have multiple automobiles on one policy with most insurers and in most states. In most cases you would be able to save a few hundred dollars easily by choosing this option.
Most insurers allow motorists to have up to 4 vehicles on one policy. Naturally, each addition would increase the premium but not as much as the alternative and policyholder would end up paying less overall. So, the cost of adding another one onto multiple-auto insurance should be about 10 – 20% cheaper than getting a separate coverage. So, it would be like buying 3 + get 1 half price if you have 4 cars on one plan.
Importance of finding a cheap automobile insurance company to start with and bring all the cars is clear when the overall premium is large. In other words, an expensive provider offering even a 10% discount may not mean much and may not even bring it to the same price with cheaper ones in the market. Here is how you could benefit from this solution and what you should be aware of in the process.
Insurance for Multiple Automobiles vs. One
As mentioned above you would pay extra premium for adding another vehicle onto an existing policy where it is allowed. However, the costs wouldn’t be as much as buying separate coverage for it. This is the underlying reason behind their popularity. Also, it is easier to manage when all your vehicles are under one roof. You don’t need to worry about different renewal dates across a number of sources.
How much you can save with multi-auto insurance depends on many factors including the types of vehicles, number of drivers listed and the company. Each applies a different level and number of discounts. Some of them may prefer this type of arrangement and offer a lot better rates.
How many drivers listed is influential too like in any other case. You are allowed to add or remove someone to automobile insurance, even if they don’t live with you, as long as you are prepared to pay for it. Generally, family members who live in the same house should and would be included anyway.
The problem here is that one bad apple can ruin the whole case simply because underwriters consider that the bad driver would have access to all of the automobiles in the package. This point would be highlighted even further if there are high risk autos included in the plan. The chance of a youngster getting the keys to a sporty coupe can scare carriers into pushing prices up.
However, this is the case even if people arrange separate policies for each automobile, except they wouldn’t get the discount offered for having only one policy for all of them. Also, driver exclusions are possible under multi-vehicle policies too.
Can You Include Family Members’ Cars?
In the majority of states, most companies allow cars registered to different names in the family to be insured under a multi-car policy. However, several states may require the name on the policy and vehicle registration document to be the same. However, there are solutions to get around it like having joint automobile insurance or adding one more name to registration documents.
Furthermore, Some insurers would offer discounts when all cars in a family are brought to them, even if it is individually. This is a classic case of bringing three separate arrangements under a single carrier. The overall savings compared to having three separate policies from three different sources can be around 10%, assuming you move things over to the most competitive one.
Various companies offer different levels of discounts under various names. It is fair to say that they are happy to keep reducing rates as long as they keep selling. That is the whole reason behind offering such deals in the first place.
Insuring Multiple Cars One Driver
However, if you are the only driver and want insurance for 2 cars one driver you should be looking to get as much as 30% saving in comparison with having them separate. You are only one and can only use one car at a time. The logic is pretty simple and it is well appreciated. Always remember to get several quotes before making your mind up. You would be surprised how different each can be.
Multiple-Vehicle Insurance Coverage Options
If anything is available with your carrier and state, you can purchase it with these as well. One important point to note is that you can buy different levels of auto insurance coverage for each one in a multi-car policy. For example, you can have full protection with Collision and Comprehensive for a new auto while you go for liability only for the old one. So, you are not restricted to the same arrangement for all the automobiles in there. It is more like combining totally different coverage for different vehicles under a single policy.
However, some companies and states may require liability limits to be the same. This reduces confusion and it makes sense in many ways. There is no sensible reason for buying different levels of liability limits for the vehicles you own since the main determining factor is you as the driver in terms of accidents.
Coverage Stacking Options with Multi-car Policies
If your state allows you can stack coverage for all the automobiles you have on the policy. Essentially, if you have $25,000/$50,000 Uninsured Motorist coverage for the first car you can increase the combined amount to $50,000/$100,000 when you add another vehicle. This is a bit more complicated issue and discussed in detail here.
There are many other ways of getting lower rates if you cannot qualify for or are unhappy with the above solutions. Many people have only one car and they can find other savings. Adding a new driver or car is a good time to compare rates since both are key factors affecting premiums. Even if you don’t get new quotes this time and just add them to an existing policy you should definitely check alternatives at the next renewal.