If you want cheap auto insurance you need to find smart ways of insuring automobiles. You should be able to insure multiple cars on one policy with most carriers and in most states. In most cases you would be able to save a few hundred dollars easily by choosing this option. Here is how you could insure all your automobiles under the same policy and what you should be aware of in the process.
How Much Is Adding a Vehicle to Multiple Car Insurance Policy?
Most multiple cars policies allow motorists to have up to 4 or 5 autos and trucks on the policy. Each addition to the policy would increase the premium. The increase depends on the type of the vehicle added. The safer the car it would be cheaper to insure it because insurers like safer automobiles. Sometimes the safer cars can still be expensive to insure due to the costs of parts for this particular vehicle. For example, hybrid cars aren’t considered high risk vehicles in general but their parts can be more expensive than an average one. Therefore, the cost of insuring hybrids can be a bit more. Its market value would affect the costs if you want full coverage for it.
However, the cost of adding a new car onto a multiple car insurance policy should be about 15 – 20% cheaper than insuring this new addition on its own. That is providing you have a cheap multi-car insurance company. So, it would be like buy 3 + get 1 free if you insure 4 cars on 1 policy.
Insurance for Multiple Cars vs One Car
What are the benefits of multi-vehicle insurance policies? As mentioned above you would pay extra premium for adding another vehicle onto your existing policy where it is allowed. However, the costs wouldn’t be as much as buying a separate policy for this vehicle. This is the underlying reason behind buying such policies. Also, it is easier to manage your insurance when all your vehicles are under single policy. You don’t need to worry about different renewal dates across number of companies.
How Much Would You Save with Cheap Multi Car Insurance?
This depends on many factors including the types of cars insured, number of drivers listed and the company you are insured with. Every company applies different level of discounts. Some companies may prefer this type of policies and offer larger discounts.
How many drivers covered under the policy is important. Like any other policy you can add additional drivers to policies. For example, you can have multi auto insurance two drivers or even more. Generally, your family members who live in the same house should be and would be included in the policy anyway.
Can You Buy Multi-Vehicle Insurance for Family Members’ Cars?
Technically, this may not be possible because of the state laws that require the policyholder and vehicle owner to be the same. However, there are solutions to get around it like having joint auto insurance policies. Furthermore, Some companies would offer discounts for buying all your policies from one insurer. This is a classic case of bringing three separate policies under single insurer. The savings compared to having three separate policies from three different insurers can be around 10 – 20%.
Various companies offer different levels of discounts under various names like second car discount, multi policy discount or even multiline discount for insuring your home with the same insurer. So, you can still get discounts for bundling or buying second and third policy from the same company that you don’t need to be overly disappointed if you cannot get one insurance for multiple vehicles for whatever reasons.
Insuring Multiple Cars One Driver
However, if you are the only insured driver and want insurance for 2 cars one driver you should be looking to get as much as 50% savings in comparison with buying two separate policies. You are only one and can only drive one car at a time. The logic is pretty simple and straightforward and the savings must be large. Always remember to get several quotes before making your mind up. You would be surprised how different each can be.
Multiple-Vehicle Insurance Policy Coverage Options
If a coverage option is available from your insurer and in your state, you can purchase it with these policies as well. One important point to note is that you can buy different level of coverage for each car in your multi policy. For example, you can insure your new car fully comprehensively while you choose not to purchase Collision and Comprehensive coverage for your old automobile. So, you are not restricted to buying the same coverage for all the automobiles that are on one policy. It is more like combining totally different policies for different vehicles under a single policy.
However, some companies and states may require liability auto insurance limits to be the same. This reduces confusion and it makes sense in many ways. There is no sensible reason for buying different level of liability coverage for the vehicles you own since the main determining factor is you as driver in terms of accidents.
Coverage Stacking Options with Multicar Policies
If your state allows you can stack your 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 on the policy you can increase the combined coverage to $50,000/$100,000 when you add another vehicle. This is a bit more complicated issue and discussed in detail here; Stacked and Unstacked Auto Insurance.
Purchasing multi-automobile insurance policies is only one way of getting lower rates. Many people have only one car and they can find other discounts to save money. Check our other articles to find out how you can find and enjoy lower rates. Adding a new driver or car to your insurance is a good time to compare rates since cars and drivers are key factors affecting premiums. Even if you don’t get new quotes this time and just add them to your existing policy you should definitely get alternative quotes at next renewal.