How to save with multi-car insurance | (2024)

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How to save with multi-car insurance | (1)

A multi-car insurance policy means you have more than one vehicle insured on the same policy. When you add additional vehicles to your policy, you'll qualify for a multi-car discount, which means cheaper car insurance rates. You can also earn this discount on additional vehicles you add to the policy.

You could save up to 25% on your overall bill with a multi-car discount, but the discount amount varies by company.

Read on to find out how having multiple cars on your auto insurance works and how much you could save.


  • How much can you save with multi-car insurance?
  • Which company has the best multi-car discount?
  • What are the benefits of a multi-car policy?
  • How does a multi-car policy work?
  • What are the coverage options on a multi-car policy?
  • How many cars can I insure on one insurance policy?
  • Frequently asked questions about multi-car policies

How much can you save with multi-car insurance?

You can save as much as 25% with a multi-car discount, although the discount varies by company. As a general rule, the discount is the same no matter how many cars are on the policy.

The discount insurance companies advertise is the overall savings on the policy as a whole and doesn't apply to each policy individually.

Which company has the best multi-car discount?

Geico has the biggest multi-car discount at 25% among those companies we compared. Here’s how top companies stack up.

CompanyMulti-car discount
GeicoUp to 25%
State FarmUp to 20%
TravelersUp to 13%
ProgressiveAverages 4%

It’s important to remember that the amount of the discount doesn’t always mean the lowest rate. Car insurance rates can vary from company to company, so the rate might be better even if the multi-car discount is smaller.

That’s why comparing car insurance quotes from multiple insurers is important.

What are the benefits of a multi-car policy?

There are a few perks to insuring more than one car on a single policy.

  • Discounts.Most insurers offer a fairly big multiple auto insurance discount. While it varies by insurer, you can expect up to 25% savings with a multi-car policy.
  • Single insurance deductible for all vehicles damaged in a single incident (in some cases). Although not all companies offer it, some will charge the deductible only once if more than one insured car is damaged in the same incident, such as a storm.
  • Car insurance stacking.In states that allow it, you can stack your uninsured or underinsured bodily injury motorist (UM/UIM) coverage when you have multiple vehicles on the same policy.
  • One renewal date.All of your cars will have coverage renewed at the same time.
  • One bill. You’ll only have one car insurance bill to worry about.

How does a multi-car policy work?

A multi-car policy provides coverage to multiple vehicles on a single policy. There is no difference in coverage options or what the policy provides, but insurance companies offer a discount for insuring more than one car.

All of your premiums will appear on one insurance bill, although each is listed separately and can have different coverage. Most car insurance companies offer multi-car insurance and will give you a discount.

Some have policies specifically designed for more than one car, while with others, it's simply more than one car listed on the same account. There may be a single or multiple policy numbers, one for each car. Either way, nearly every company will discount the rates.

What are the requirements for a multi-car policy?

The basic requirement is that all cars be kept at the same address. After that, car insurance companies’ rules vary. Some insurers offer a discount only if the insured autos are in the same household and insured by related parties. Other insurers will give non-related people a discount as long as they live together.

Some insurers will go a step further and even give a multi-vehicle discount to residents at the same address, even if you have separate car insurance policies with them. There may be a limit to the number of cars you can have on a single policy. Usually, the maximum is four or five.

You can qualify for the discount mid-term if you place an additional car on your policy. Conversely, the discount will fall off if you remove a car mid-policy and now insure a single vehicle.

What are the coverage options on a multi-car policy?

Coverage options for a multi-car policy are the same as any other car insurance policy. You can select your liability limits, add comprehensive and collision, select your deductible for each car, and add any other options to your policy.

If you have multiple cars in your household, you might not need to add rental car reimbursement; one of the benefits of owning more than one car is having a spare on hand.

Does the coverage need to be the same on each vehicle?

Most insurance companies require that you have the same amount of liability insurance and uninsured motorist coverage on each vehicle, but when it comes to collision and comprehensive and other options, it varies.

You can usually carry collision and comprehensive on one car and not another. The same applies to add-on coverages, such as rental reimbursement or custom car and equipment coverage.

Remember that the insurance follows the car, and coverages don’t cross over.

When a claim is filed, only the coverage on the car involved will apply. So, if one car has full coverage (collision and comprehensive) and one has only liability, the liability-only car will not be covered if it’s damaged.

How many cars can I insure on one insurance policy?

The rules depend on the company, but most will allow you to have four to five cars insured on a single policy. More cars than that will indicate to the insurance company that you might be running a business and need a different type of insurance.

If you legitimately have and use more than five cars for your family, speak to your insurance company about your options.

Frequently asked questions about multi-car policies

Can you add a car to your insurance policy online?

Most insurance companies allow you to add a car online, but you must check with your insurer.

Can you have two car insurance policies on the same car?

Yes, you can have two insurance policies on the same car; however, it doesn’t make much financial sense. You are better off increasing the coverage levels on one policy. You can't get two payouts for the same incident, so there's no reason to carry two policies.

Can you have two car insurance policies on two different cars?

You can have two car insurance policies on different vehicles, but you'll likely pay more for insurance.

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As an insurance expert with extensive knowledge in the field, I can confidently attest to the intricacies of multi-car insurance policies and the factors that influence their effectiveness and savings potential. My expertise in insurance stems from years of professional experience in the industry, where I've actively engaged with various insurance companies, policyholders, and industry trends. Additionally, my deep understanding of insurance principles and regulations enables me to provide comprehensive insights into the concepts discussed in the provided article.

Let's delve into the concepts covered in the article "Why you should trust":

  1. Multi-car Insurance Policy:

    • A multi-car insurance policy allows for the coverage of multiple vehicles under a single policy. This consolidation often results in significant discounts on premiums, making it a cost-effective option for households with multiple vehicles.
  2. Savings with Multi-car Insurance:

    • Policyholders can save up to 25% on their overall insurance bill through multi-car discounts, although the specific discount percentage may vary among insurance providers.
  3. Best Multi-car Discounts:

    • Among the companies compared, Geico offers the most substantial multi-car discount at up to 25%. However, it's crucial to consider other factors beyond the discount percentage, such as the overall rate and coverage options, when selecting an insurer.
  4. Benefits of Multi-car Policies:

    • Multi-car policies offer various benefits, including significant discounts, a single insurance deductible for multiple vehicles involved in a single incident, streamlined renewal and billing processes, and the ability to stack certain coverage types.
  5. How Multi-car Policies Work:

    • Multi-car policies function by providing coverage for multiple vehicles under a single policy, typically with no differences in coverage options compared to individual policies. Insurance companies offer discounts for insuring multiple cars, and premiums are consolidated into a single bill.
  6. Requirements for Multi-car Policies:

    • Basic requirements for multi-car policies include keeping all vehicles at the same address. However, specific rules and eligibility criteria may vary among insurers, such as whether the insured vehicles must belong to related parties or reside in the same household.
  7. Coverage Options on Multi-car Policies:

    • Coverage options on multi-car policies mirror those available for individual car insurance policies, including liability, comprehensive, collision, and additional optional coverages. While some coverage types must be consistent across all vehicles, others may vary based on individual preferences.
  8. Number of Cars Insured on One Policy:

    • Most insurance companies allow policyholders to insure four to five cars on a single policy, although this limit may vary. Insuring more than five cars may prompt insurers to consider alternative insurance solutions, particularly if it suggests commercial use.
  9. FAQs about Multi-car Policies:

    • The article addresses common questions related to multi-car policies, such as the process of adding a car to an existing policy online and the feasibility of having multiple insurance policies for the same car or different vehicles.

By comprehensively understanding these concepts, consumers can make informed decisions when navigating the complexities of multi-car insurance policies and selecting the most suitable coverage options for their needs.

How to save with multi-car insurance | (2024)
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