The amount you’ll save when buying a multi-car insurance policy varies by insurer — we compared rates from the top car insurance companies and found that the best discount came from GEICO, which offers a savings of up to 25% for insuring multiple vehicles with them. But we recommend getting several quotes, as a multi-car discount is only one aspect of getting the best price on your car insurance.
- Which Car Insurance Companies Have the Biggest Multi-Car Discounts?
- How Does a Multi-Car Insurance Policy Work?
- How to Get the Cheapest Multi-Car Insurance Quotes
- How Many Cars Can I Insure on One Insurance Policy?
Which Car Insurance Companies Have the Biggest Multi-Car Discounts?
We surveyed nine top insurance companies and found that they all offered a discount when you insure multiple cars. Some companies listed a specific discount percentage you’d receive when insuring more than one vehicle, while others simply stated that a discount exists.
Of the companies who gave a specific discount percentage, GEICO had the best savings: drivers will save up to 25% by insuring their vehicle through the company. State Farm also had a big multi-car discount of 20% off.
|GEICO||Up to 25%|
|State Farm||Up to 20%|
|Travelers||Up to 8%|
We also found that the insurance companies Allstate, Farmers, Liberty Mutual, Nationwide and USAA offered multi-car discounts; however, the insurers didn’t specify how much.
Additionally, you should take these percentage discounts with a grain of salt, because the available discounts aren’t necessarily starting from the same base price. Imagine Company A offers you a 30% discount from the base price of $400 per month on insurance for two cars. Meanwhile, Company B only offers you a 10% discount, but its base price is $300 per month. In this case, Company B will have a lower effective price.
|Base Price (2 Cars)||Percent Discount||Net Price|
A multi-car discount is not the only way to get a cheaper car insurance policy. You might also be eligible for other discounts, like for good driving or customer loyalty, that might make one insurer a better deal than another. The only way to be sure you’re getting the cheapest price is to collect quotes from several insurance companies, and purchase the one that has the lowest cost.
Other Benefits to a Multi-Car Insurance Policy
Another benefit of a multi-car insurance policy is the ability to stack insurance coverages. For states where it’s available, stacking coverage allows you to take advantage of the total amount of your coverage any time. For example, if you have two cars and choose to stack your $50,000 uninsured motorist (UIM) coverage, you effectively have a $100,000 UIM policy protecting you at all times — usually at a lower cost than a non-stacked policy with the same total limit. The option to stack certain coverages varies by state, but the most common options are UIM and personal injury protection (PIP) coverage.
Having a multi-car insurance policy also streamlines the process of paying for your insurance. You only have one recurring payment to make, and one policy renewal date to keep track of. This benefit doesn’t save you money directly, but it can save you time and effort.
How Does a Multi-Car Insurance Policy Work?
For the most part, multi-car insurance policies work the same way as a policy with only one car on it. When you’re filling out the quote form, you’ll provide information about the cars you own and who drives them. Some car insurance companies ask who the primary driver is for each car, which is the primary vehicle for each driver, or both. Car insurance companies will automatically apply any multi vehicle discount to your quote as you apply for it.
Some coverages are shared by every driver on a policy, while others apply only to one vehicle. For example, liability coverage is shared by every vehicle (and every driver) on your policy. Meanwhile, comprehensive and collision coverage can be set differently for every vehicle. This way, you can carry full protection on your brand-new Acura, without paying extra for coverage on your teen driver’s 15-year-old Toyota Camry.
|Coverages Shared Among Cars||Coverages Set For Each Car|
|Liability (bodily injury and property damage)||Comprehensive|
|Uninsured/underinsured motorist||Emergency road service|
Who Can I Put On a Multi-Car Insurance Policy?
You can share a multi-car insurance policy with anyone who you live with. This includes your spouse, children, other family members, and even roommates. In fact, it’s a good idea to list anyone on your policy who lives with you and may occasionally drive your car. If your roommate crashes your car and isn’t listed on your policy, you probably wouldn’t be able to make a claim to your car insurance to cover the damage.
How to Get the Cheapest Multi-Car Insurance Quotes
If you just want to purchase multi-car insurance as quickly as possible, you can simply call your insurance agent or go online and add your new vehicle to your policy — it’ll only take a few minutes. However, buying a new car is an excellent time to shop around for multiple quotes from car insurance companies. Car insurance companies constantly change how they evaluate rates, and your current company may not offer the lowest price now that you have multiple cars.
Car insurance companies have worked to make the process of getting quotes online easier, especially for multiple vehicles. But the process still involves a lot of repetitive data entry. You can speed up the process by collecting the following information ahead of time:
Information to Have Ready When Getting a Multi-Car Insurance Policy
- Car VIN Numbers
- Approximate weekly or yearly mileage for each vehicle
- Who drives each car the most
- Driver’s license and Social Security number for each driver
For longer numbers like VINs and driver’s license numbers, you can save even more time by recording them digitally and pasting them into the appropriate fields, rather than transcribing them by hand.
How Many Cars Can I Insure on One Insurance Policy?
Every insurance company we checked with allows you to insure multiple vehicles, but not every company will allow the same number of cars on an online quote. We found that GEICO lets you add the most cars (nine) of any major insurance company, but every company allows you to have at least four cars on your policy.
|Insurer||Maximum number of cars|
If you need to insure 10 or more vehicles, you may be able to add additional cars to your policy by working with an agent directly, or by purchasing a commercial car insurance policy.