There is no surprise there that multi-vehicle policies must be more economical for obvious reasons. There is less administration and more selling. Naturally, there are a few factors influencing premiums, including vehicles, drivers and competitiveness of the carrier. Let’s have a look at them separately and try to figure out the combined effects.
Each additional vehicle should cost you about 10-20% less to cover under multi-vehicle insurance than a separate arrangement. You can have 4 – 5 cars and trucks on the same policy with most of them. More than this number, you will need to start another one. So, the dollar amount will depend on the number and other details but can be large.
Did You Start with the Best Prices?
It is a sensible assumption that people would have made sure that the company they have chosen for all their vehicles is very competitive by getting a few quotes. If you have done that you would have benefited from the fact that you have cheap rates several times over. This alone can cut the premiums as much as 50%. Why not if you didn’t shop around?
Listed Drivers and Their History?
This is very telling in terms of costs. If you are the only driver and have several automobiles in there you should expect as much as a 50% discount due to a simple fact that you can only operate one car at a time. The rest would be sitting at home collecting dust.
However, having at least one bad or young driver listed can push the prices up for everyone, again simply because such person has access to all of them. It may be sensible to look at ways of separating such individual and it may be possible if he/she has own car and coverage.
If we follow the above example, having one bad driver and high risk car in a multi-auto insurance policy can be disastrous. Imagine a teenager crashing premiums like a bull in a china shop. This would be even worse after an accident claim. So, it doesn’t always work but it does in most cases.
It is worth keeping in mind that even if you cannot (or don’t want to) buy a multicar policy, you can still save by insuring another vehicle in the same household with the same company (separately). Sometimes, each car may belong to different member of a family. Some states may insist that the owner and the name on the insurance schedule must be the same. In such cases, you may negotiate discounts for bringing all the cars in the family to one carrier. Also, you may consider buying joint policies with both names on the documents. You need to check these options and see which fits your circumstances best.
Furthermore, you can save by combining home and automobile insurance in one place. They keep pestering people so that they can sell more. This would be your chance to negotiate a good deal. If there is the will there are ways to save money. You just have to keep looking and asking for it.