Insuring multiple vehicles on the same auto insurance policy, known as multi-car insurance, can be a great way to save money compared to insuring each vehicle separately. However, multi-car discounts vary widely among insurance companies and states. So how do you know if combining your car insurance really will pay off? Take this quick quiz to find out if multi-car insurance could benefit your household.
Do You Own More Than One Vehicle
The first prerequisite for a multi-car discount is obvious: you’ll need more than one car, truck, motorcycle or other vehicle to insure. Almost every auto insurer offers some kind of price break when covering two or more vehicles, although standard eligibility rules apply. At a minimum, you’ll likely need to live in the same home and be related by blood, marriage or adoption to qualify.
How Many Drivers Reside in Your Household
Insurance companies extend multi-auto policies to households, not individuals. So even if you’re the sole owner, if other licensed adult drivers live with you, their vehicles can be bundled together. Just bear in mind that adding teenage or elderly drivers may reduce savings due to their higher-risk status.
Do Your Vehicles Share Similar Attributes
The more alike your vehicles are, the higher your multi-policy discounts are apt to be. Similarity spans categories like make, model, year, safety features, primary parking location and annual mileage driven. If one car stays garaged while another racks up 30,000 miles per year commuting, your discount decreases versus two similarly used vehicles.
How Does Your State Regulate Multi-Car Policies
Regulations around multi-car insurance vary significantly nationwide. Some states mandate generous discounts or flexible bundling rules, while others impose strict eligibility criteria or offer little incentive. Spend a few minutes researching your state’s specific regulatory climate for multi-vehicle policies. If benefits seem limited, your savings may prove negligible.
Do You Mind Using the Same Insurer
A majority of multi-auto discounts require covering all vehicles with one carrier using a single, bundled policy. If you prefer the freedom to choose different providers or tailor policies individually, multi-car insurance eliminates that flexibility in most cases. Decide if consolidating coverage outweighs customization before locking yourself into a group policy.
If you answered “yes” to most questions so far, a multi-vehicle insurance plan may offer worthwhile annual savings. To estimate your potential discount percentage, consider these additional factors:
How Does Your Driving History Impact Premiums
Drivers with recent at-fault accidents, multiple moving violations or lapses in insurance generally pay higher premiums. Combining a spotless record with a riskier profile typically dilutes the savings you might receive individually. Then again, one bad driver’s history usually affects rates across bundled policies anyway ‒ so combining could balance out any rate hikes.
What Discounts Do You Currently Receive
Most standard discounts like going paperless, paying annually or being a loyal customer apply on top of multi-auto savings. But insurers usually don’t allow stacking discounts for anti-theft devices, driver training courses or membership affiliations across bundled policies. Tally up any existing breaks you may lose by switching to a group format.
Running some quick quotes both ways ‒ for a joint policy and for separate policies ‒ offers the best means to gauge potential cost reductions with multi-vehicle insurance. If you discover significant savings, investigate each discount, coverage level and restriction until you feel confident a group format is the most financially advantageous. And remember to revisit this analysis periodically, as circumstances change over time. Vehicles age, drivers come and go from your household and insurance rates fluctuate. Don’t simply renew multi-car coverage year after year without reconfirming it still makes solid economic sense.
