A multi-vehicle insurance policy means you pay one premium for each vehicle. Not only does this make it easier to manage your bill, but providers usually offer discounts to policyholders who insure multiple vehicles under one policy. Explore the eligibility requirements, potential discounts, and available coverage options to determine if a multi-vehicle insurance policy meets your needs.
What is multi-vehicle insurance?
Most auto insurance companies offer multi-vehicle insurance. Multi-vehicle insurance is offered by almost all insurance companies and is in fact no different from standard auto insurance. Multi-vehicle insurance means that more than one vehicle is insured on your car insurance. The benefit of insuring multiple vehicles on one policy is that most insurance companies offer a discount, usually called a multi-vehicle discount, if you insure more than one vehicle on the same policy.
Each company may have its own requirements for multi-vehicle insurance policies. Some only require that all insured vehicles are located at one address, while others consider the relationship between the vehicle owner and the policyholder. It never hurts to ask your insurance company what their specific criteria are for multi-vehicle insurance policies. If you have more than one person living in your household, a multi-driver auto insurance policy may also apply.
What discounts can I get by purchasing multiple vehicle insurance?
The discounts you get for buying multiple car policies vary from insurance company to insurance company. You’ll need to get quotes to find out the exact amount you’ll save on your combined premiums, but here are some discounts advertised by insurance companies:
| friend | Up to 25% |
| Geico | Up to 25% |
| progressive | Average 12% |
| State Farm | About 20% |
*Depending on the shipping company at the time of publication.
Is there a limit to the number of cars I can have on insurance?
How many cars you can insure on one policy varies by company. Many companies allow you to insure up to four cars on one policy before you need a second car policy. Some companies allow you to insure more than four cars on one policy.
Generally, insurance companies will require that you have an “insurable interest” in a vehicle before they will insure it. Insurable interest means that you have a financial interest in the vehicle. An example of this would be a jointly owned vehicle. Whether the vehicle is insured and properly maintained is important to you because you have a part of the ownership.
If your insurance company allows you to add a vehicle that you don’t own or co-own to your policy, the owner must be a family member. You may also need to list the family member as a driver or insured on your policy. For more specific information about your insurance company’s guidelines, contact your insurance agent.
Can multi-vehicle insurance cover multiple drivers?
Multi-vehicle insurance usually means covering multiple drivers. Imagine a household with two adults and two driving-age teenagers sharing three cars. There is a high probability that one day the drivers and cars will be swapped. In fact, for this reason, auto insurance companies usually require that all household members have multi-vehicle insurance. This can apply not only to family members in the household, but also to roommates and cohabitants. Each insurance company has different rules, so you should discuss this with your agent when creating a multi-vehicle policy.
How does multi-vehicle insurance coverage work?
Most states require drivers to carry a minimum amount of auto insurance. You must meet the minimum coverage requirements to register and legally operate your vehicle.
However, many drivers also have access to optional coverage. Here are some common auto insurance coverage options found on multiple car insurance policies:
- Liability Insurance: Liability insurance covers bodily injury and property damage. It covers the losses of the other driver if you cause an accident and injure them or damage their vehicle.
- Personal Injury Compensation: Personal Injury Protection (PIP) is required in many no-fault states. It covers you and your passengers’ medical expenses after an accident, regardless of which driver is at fault.
- Collision Insurance: If you get into an accident, collision insurance will pay to repair your vehicle. If your vehicle is a total loss, your insurance company will pay the actual cash value of your vehicle, determined at the time of the loss, minus your deductible.
- Comprehensive Insurance: Comprehensive insurance covers the cost of repairing your vehicle if it’s involved in a non-collision incident, such as theft, vandalism, accidents with animals, falling objects, or weather damage.
- MedPay Insurance: Medical Payments Insurance (MedPay) covers the medical expenses of you and your passengers if you’re injured in an accident. MedPay is available in most states.
- Roadside assistance: Roadside assistance is a guarantee that covers basic auto services if your car gets stranded. Most policies will pay for things like fuel delivery, changing a flat tire, jump-starting your battery, and more.
- Rental Car Coverage: If a covered loss damages your vehicle and it needs repairs, rental car coverage will pay for the rental car so you can keep moving.
Certain coverages in a multi-vehicle policy apply to all insured vehicles, such as bodily injury liability, property damage liability, and PIP/MedPay coverage. However, other coverages, such as comprehensive and collision coverage, vary from vehicle to vehicle. For example, if you are insuring a new car and a 15-year-old used car, you can choose full coverage for the new car and liability-only coverage for the used car. However, you can choose to have the same comprehensive and collision deductibles for all your vehicles, but your insurance company isn’t required to do so.
When is multi-vehicle insurance not an option?
While multi-vehicle insurance can be beneficial for some drivers, it’s not an option for every scenario. For example, if you want to insure your motorcycle, you’ll need a separate motorcycle insurance policy and can’t add it as an auxiliary vehicle to your personal car policy. Even if your insurance company offers motorcycle insurance, you can’t insure your motorcycle under the same policy as your other vehicles.
The same goes for classic cars. If you have a classic car in your garage, we recommend getting specialized insurance. Classic car insurance offers more customized coverage for antique or rare older vehicles, including higher limits of coverage for repairs and transportation coverage. These coverage options are not usually available on personal auto insurance.
Another time you may not qualify for multi-vehicle insurance is if you live in two states. For example, you may have two vehicles stored in two places, one in each state. In that case, you would have two policies and would not qualify for the multi-vehicle discount.
