Are Multiple-Car Insurance Policies Worth It
Are Multiple-Car Insurance Policies Worth It?
As car collectors and two-income households can attest, owning more than one vehicle is fairly common. Indeed, multi-car ownership may be more common than you think.58.6 percent of households own more than one vehicle, a figure that has remained relatively stable over the last decade.
One disadvantage of owning multiple vehicles is the need to insure those cars, trucks, and SUVs. Fortunately, auto insurers have the perfect solution: multi-car insurance policies.
"A multi-car policy is a vehicle insurance policy that covers two or more vehicles kept at the same address," explained Ian Lang, senior car advice editor at Bumper.com, a company that provides vehicle history reports. It is also known as a multiple vehicle policy or a vehicle schedule policy. Your insurance company will decide Vehicles and homeowners can be insured under the same policy."
Most multi-car insurance policies work in the same way that a single-car policy does.
"You'll need to provide information about the cars you own and who drives them during the quote process," Lang explained. "Car insurance companies may request information about the primary driver of each vehicle or which vehicle is each driver's primary vehicle. When you request a quote, they usually apply a multi-vehicle discount automatically."
What is Covered Under Multiple Car Insurance Policies?
Some coverages apply to all policyholders, while others apply only to one vehicle.
"Liability coverage is provided for each vehicle (and each driver) on your policy," Lang explained. "However, comprehensive and collision coverage may differ depending on the vehicle." You can ensure your success by doing so.Without having to pay extra for coverage on your newly licensed teen and their vehicle, your brand-new car is adequately protected."
How Much Can I Save with Multi-Car Insurance?
- 25% potential savings on multi-vehicle policies
While the total cost of multi-car insurance varies depending on the insurance company, most well-known insurance companies offer a discount for choosing their multi-car policy.
Geico offers one of the best multi-car insurance discounts in the industry. They provide policy savings of up to 25% when insuring two or more vehicles.
State Farm came in second, with discounts of up to 20% off the same policy.
Obviously, the more cars you own, the more money you'll spend on car insurance. There are, however, some discounts available to vehicle owners – as well as some costly exceptions.
"You'll get discounts for each car you add, but your overall cost will go up," Aliza Vigderman, director of content at AutoInsurance.com, explained. "Another consideration is who is driving the car. For example, if you add your teenager’s car, your insurance rates will increase dramatically, as teens are considered “high-risk” drivers.”
Tips for Multi-Car Insurance Consumers
It is not always simple, but there is a way to have a good multi-vehicle insurance experience. These pointers can help you get started.
Know precisely what you require. "Be certain about your specific multi-auto insurance requirements," Lang advised. "Every state has minimum coverage requirements, but you can't just rely on that." Every individual has unique security requirements, which include:
- Driving mileage
- Make and model of your automobiles, trucks, or SUVs
- The price of your vehicles
- Driving experience
- Weather conditions in your area of residence
- Typical driving conditions encountered while commuting in your vehicles
With insurance, cast a wide net. When shopping, savvy shoppers compare retail prices. Apply the same logic when shopping for car insurance, and you'll save money.
"Obtain at least three quotes from different providers when shopping for automobile insurance," Lang advised. "If you don't have complex insurance needs that necessitate one-on-one counseling with an agent, you can save money by avoiding brick-and-mortar locations and independent agents who are compensated by commissions."
Make Sure you have the Right Coverage for Each Vehicle.
Car owners frequently believe that because they have full coverage on one vehicle, they have it on all vehicles.
No, not always.
"When you add a car to your policy, you'll be asked to select coverage limits," Melanie Musson, an auto insurance analyst with CarInsuranceComparison.com, explained. "Your coverage will not change unless you change those limits." You may even have different deductibles for each vehicle. That is why it is critical to understand what is covered on each vehicle to determine if your policies need to be updated."
Bundle Your Policy with Home Insurance
If you're looking for a multi-car policy, consider a bundling policy in which you buy home and auto insurance from the same company.
"You'll typically receive a discount for multiple vehicles, as well as a discount for home and auto. "Bundling," Musson explained. "When comparing car insurance quotes, ensure that you compare the
premiums when insuring multiple vehicles Some providers provide a 20% discount, which may help you decide which provider is best for you."
Handle Teen Drivers Carefully.
Adding your teen's name to every policy in your household is unnecessary, so avoid doing so.
"Instead, put your teen in the five-year-old family minivan and you'll probably save a lot of money," Lang advised. "While the mere presence of teen drivers can raise the cost of all your vehicles, you can save significantly by being selective in which car policies you add them to."
Your teen may disagree with your decision, but insurance rates are determined by statistics that favor young drivers.
"Inexperienced drivers are more likely to cause accidents in high-performance vehicles than in mainstream vehicles," Lang added. "Also, if one partner in a couple has a history of bad driving habits, such as accidents or moving violations, merging your policy with theirs is probably not a good idea."
Takeaways on Multi-Car Insurance
Getting good insurance isn't a luxury for households with multiple vehicles; it's a necessity.
Give that necessity the attention it deserves by conducting a thorough search for multi-vehicle insurance.
"Go ahead and partner with the provider who offers the best deal," said Baruch Silvermann, CEO of The Smart Investor, an online personal finance academy. You should also make sure to check the insurance terms and conditions to ensure that you are getting the best level of coverage for your circumstances and requirements.”