While auto insurance is important, it can also be very expensive. This is exactly why most people are looking for ways to save money on their auto insurance. One of the easiest ways to do so is to use the same policy to insure more than one car. This is known as family automobile insurance. Many people share their auto insurance policy with other family members, especially if they share and use the same car.
For example, if you are getting married, you will save money by getting family insurance. Married drivers file fewer claims and, therefore, are offered lower rates when it comes to their auto insurance policies. However, you will require a clean record to get a good driver’s discount.
That said, when you choose a multi-car policy, also known as a family auto insurance policy, you neither require scrupulous attention to speed limits or a lifelong commitment. Instead, it is a reward for bringing additional benefits to your insurance company. Thus, it is a win-win for both parties.
Requirements for a Multi-Car Policy
The basic requirement for getting a multi-car policy is to insure two or more vehicles using the same insurance policy. You must have the lien holder and VIN information for all the vehicles. You will also need the driver’s license numbers of all the people who will be driving these vehicles. The requirements for a multi-car policy are not much different from a single-car policy except that you will be listing more than one vehicle on the same policy.
Some automobile insurance companies have a cap on the number of vehicles you can insure on a multi-car policy. This cap is usually four to five vehicles. However, rules vary from one car insurance company to the other when it comes to multi-car policies. You may get discounts from some car insurance companies if the cars insured on the same policy are in the same household or belong to related parties. Other insurance companies may just require all the policyholders to belong to the same address regardless of whether they are related to each other or not.
Some car insurance policies also offer a mid-term discount when you put another car on the same multi-car policy. This discount may be stopped if you take a car off a multi-car policy. You must check with your car insurance provider about all the benefits you can get and the number of cars that can be put on the same automobile insurance policy.
Amount of Coverage on Each Vehicle
When you go to a car insurance company for multi-vehicle coverage, you will usually need to have the same amount of uninsured motorist coverage and liability insurance on each vehicle. This eliminates any confusion when it comes to the amount of liability coverage on each vehicle. However, this is mostly the case with liability coverage only. Comprehensive and collision coverage may be carried on one car and not on another. Similarly, you don’t need to have the same coverage for equipment, customer car or rental reimbursement on each vehicle. You are allowed to choose coverage as per your needs.
Simply put, optional coverage options, such as collision, rental reimbursement, custom equipment coverage, and comprehensive coverage on each vehicle can be of a different amount. However, the uninsured motorist insurance and liability insurance need to be the same for all the vehicles covered under the same multi-vehicle insurance policy. This means that if your first car’s liability coverage amounts to 100/300/50, then all the cars insured under the same policy must have the same liability coverage.
It is also important to keep in mind that car insurance only covers the vehicle and not the person driving the vehicle. If you are thinking about adding any additional car to your auto insurance policy, then you should compare rates from different auto insurance providers. Your present auto insurance company may not offer the best rates for multi-vehicle policies. Therefore, it is best to do your research or ask around for recommendations so that you can save money on your multi-car policy.
When you add more than one car on an auto insurance policy, the auto insurance company usually offers you a discount. It may be anything from 10-25% discount on your comprehensive, liability, and collision coverage. Usually, each car under the multi-car policy is given a discount. However, it does not compound with the addition of each car. This means that if you are getting a 15% discount on your first car, then the discount offered on other cars will also be 15% and not more.
See full list of car discount in our – 8 Auto Insurance Discounts Worth Asking About in Connecticut
Why Choose Multi-Car Insurance?
If you have more than one car in your house, then it is best to get multi-car insurance coverage instead of getting car insurance on each vehicle separately. The renewal date for the policy will be the same for each car and you will also not need to complete paperwork for each individual car. You may also be eligible for discounts, as mentioned above, on each car you add to the policy.
The following should consider getting a multi-car insurance:
Families that have more than one driver
A person who owns more than one car
Couples that own a car each
The Final Word
As evident from the above discussion, it is best to get multi-vehicle insurance if you have more than a couple of cars in your household. This will not only save you money but you will also not have to go through the hassle of separate paperwork and renewal dates.
Most of the families in the U.S. with multiple cars prefer getting an auto insurance plan with the family. You should also choose a multi-vehicle plan if you fit in the requirements of the car insurance company. It is important to read the fine print carefully before you sign anything. Ask questions and get their answers so that you know about the benefits you can get with a multi-vehicle policy.
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