What you need to know about multiple-car policies for your family

Cheapest Car Insurance Companies for Multi-Car Policies

To understand which companies consistently offer the lowest rate to policyholders, we looked at 1.9 million multi-vehicle car insurance quotes and calculated the average quote offered by each company. These are the companies offering the cheapest rates for multi-car policies.

Insurance Company Cheapest Monthly Quote for a Multi-Car Policy Farmers$175Plymouth Rock$189Mile Auto$190Foremost Signature$196Elephant$197

Disclaimer: actual quotes may vary based on the policyholder’s unique driver profile.


Is multi-car insurance cheaper?

There’s no guarantee it’ll be cheaper than separate policies, but it’s worth checking. To find out what works out cheaper for you, compare car insurance quotes, add them up, then try a multi-car quote to see if it costs less.

Just make sure you compare like-for-like in terms of the level of cover and features you need. So if you want comprehensive insurance including legal cover and insurance for driving in Europe, only compare prices on policies that include those things.

The driver’s age and the car insurance group are two of the biggest factors affecting the price. That means a multi-car policy that combines a 50-year-old driving a BMW i8 with an 18-year-old in a modified Citroen C3 will be priced based on the risk each poses to the insurer, combined into a single premium.

There are plenty of other factors that go into the price though. Your driving history, whether you’ve claimed before, got penalty points and even where you live all affect the price.

Uninsured driver protection

Some insurers will cover your excess and protect your no claims bonus if you’re in an accident with an uninsured driver and it wasn’t your fault

How Do I Get a Multi-Car Insurance Policy?

To get a multi-car insurance policy, call your insurance company’s toll-free number and ask, “Can I add another vehicle to my insurance policy?” You might also be able to add a new vehicle by using your insurer’s online portal. To be clear, you’re only updating your existing policy to add a car, not getting a new policy (unless you’re shopping for auto insurance). 

Before calling or logging on, you’ll need to have on hand the vehicle identification number (VIN); the registration; and potentially other information such as make, model, and mileage. If the car was covered under a previous insurance policy—say your fiance’s policy—make sure you have information on the prior insurance carrier. 

To qualify for a multi-car insurance policy, insurance companies might require some or all of the following: 

  • All cars to be registered at the same address 
  • A limited number of vehicles on the policy 
  • Vehicles to be owned by the same individual
  • Cars to be parked overnight at the same address regularly

How Much Is a Multi-Car Discount?

When you add a vehicle in the middle of a policy year, your rate will likely change, just as it would if you’d added a driver or changed your coverage. 

Adding a second (or third) car to your auto insurance mix could provide deep discounts with some insurers. For example, in Michigan, most insurers offer a multi-vehicle discount, usually in the 4%-30% range, although discounts can go up to 64%. These savings can be equal to policy savings for having a car equipped with airbags or anti-theft systems.

Because the discount varies so widely, if you’re considering adding a car, you might compare insurance rates before updating your own policy.

You’ll likely be required to carry the same amount of liability insurance on all vehicles for bodily injury, damage to others’ cars, and uninsured/underinsured motorist coverage (when required). However, you may choose different collision and comprehensive coverages for different vehicles. You may also choose different deductibles for different cars.

Benefits of a Multi-Car Insurance Policy

When you have several cars to insure, it’s almost always worth it to buy a multi-car policy. Multi-car policies usually offer the lowest cost to you while also making it easier for you to manage your policy.

One Payment

When you have just one policy, you have just one payment, simplifying the process. You also have to manage bill pay or billing disputes with one company. And you’ve got just one renewal date to remember. On the other hand, you’ll pay the entire monthly cost on one day of the month, which may be undesirable.

Shared Deductible

If more than one of your cars is damaged in a single incident, you only have to pay one deductible. For example, a hailstorm comes through your area and causes hail damage to both your cars. You can submit a single claim with one deductible to cover both of your vehicles. Shared deductibles are never an option when you have separate policies.

Insurance “Stacking”

In some states, you’re allowed to stack uninsured and underinsured coverage limits in the event of a claim. Let’s say you’re hit by an uninsured motorist. If you have uninsured motorist protection of $50,000 per person and $150,000 per incident on two vehicles, you can “stack” those limits to double the base amount to $100,000 per person and $300,000 per incident.

Significant Discount

The multi-car discount is typically one of the best discounts available, second only to bundling your car policy with other insurance products. Some companies give you more than 20 percent off your total, which can save you hundreds every year. Be advised that some companies offer the multi-car discount under a different name, such as a loyalty discount.

Of course, it’s hard to know which company will offer you the lowest rate unless you conduct comparison shopping. Insurify makes it easy to compare multi-car policies from six or more insurers.

How much does a multi-car insurance policy cost?

The average cost of car insurance is $1,674 annually for full coverage, but varies significantly from carrier to carrier and between individuals. Rates are influenced by multiple factors such as age, driving history, location and the condition of the car.

Because multi-policy types are so common, getting several multi-car insurance quotes is relatively straightforward. Usually, car insurance companies will ask you for the following information:

  • Make, model and year of the cars you want to include on the policy
  • Vehicle identification number (VIN)
  • Odometer reading for each of the vehicles
  • The name, date of birth and driver’s license numbers of each driver to be added to the policy

Can You Have Two Car Insurance Policies On Different Vehicles?

It is legal to have two car insurance policies on different vehicles. A common reason to do this is when your carrier can’t provide insurance on one of your vehicles, such as a classic car or luxury vehicle.

However, having two car insurance policies on different vehicles generally costs you more money, so it is not recommended. Many insurance providers offer multi-car discounts. And if you live in a household with multiple people, your existing insurance policy may require that all drivers in your household be added to your existing policy. This can potentially raise the rate of your insurance premium, so it is best to take advantage of the one plan you already have.

Frequently asked questions

Which company offers the cheapest multi-car insurance policy?

While nearly every company offers some form of multi-car discount, it is impossible to say which company offers the most affordable for each kind of driver. Because there are so many factors that impact car insurance prices, the cheapest car insurance company offering a multi-car policy may also be one offering you important coverages in other areas, like for ridesharing. Experts often suggest obtaining quotes from several insurers to find the best company for you.

What are stacked insurance limits?

Stacked insurance can be an added benefit with a multi-car policy. In addition to the money saved from discounts, stacking may allow you to combine or “stack” the uninsured motorist or underinsured motorist coverage limits that you have on each of your vehicles. By doing this, you can typically increase your overall limits by considerable amounts.

Is it worth getting multi-car insurance?

Having a multi-car policy could allow you to easily manage coverage for multiple vehicles stored at the same household or even save on your overall premium. However, it may not always be the cheapest way to insure vehicles. For example, if one or more drivers in a family have poor driving histories, the increased risk may cause premiums to be higher than the cost of separate policies. One of the best ways to determine which policy type suits your situation is to compare the price of similar coverages from different providers.

Can I insure a car and motorcycle on the same policy?

No, insurers require a separate type of coverage — aptly named motorcycle insurance — to protect motorcycles. That doesn’t necessarily mean you have to miss out on savings, though. Use the same insurer for your car(s) and motorcycle. While you won’t get a multi-car discount, you will likely get a discount for bundling.

What are the reasons drivers consider two auto insurance policies?

Can one car have two insurance policies? Yes, drivers use several reasons when they insure the same car with two different insurance companies. But as you’ve learned, in most cases, a single policy will suffice, and a second policy is just a waste of money.

For example, perhaps you want to make sure you have adequate coverage in the event of an accident. Instead of taking out a second auto insurance policy and facing potential fraud charges, invest in more coverage options.

What does fully comprehensive auto insurance cover? The details of a full coverage policy will vary by the insurance company. However, it almost always includes your state’s minimum required level of coverage and some level of collision and comprehensive insurance.

You can also add optional coverages, like roadside assistance programs and even rental car assistance.

Or, maybe you share a vehicle with a roommate, friend, or another household member, and you both want different coverage levels on the vehicle.

However, a second policy is still inadvisable. Paying for two separate policies will cost more than splitting a fuller coverage policy between two people.

If the roommate you share your vehicle with is a high-risk driver who struggles to receive affordable insurance rates, compare rates from multiple companies to find a policy you can both afford.

If you live with your significant other, you can still both be on the same insurance policy, so there is no need for you both to carry separate policies.

You can use an auto insurance comparison tool and input the information for all of the drivers for the vehicle and the vehicle’s information. The tool will then compare your information and auto insurance desires with all available policies.

Ultimately, you and your roommate are better off coming to an agreement and splitting the costs for a single policy.

As you can see, in most instances, having two auto insurance policies on a single vehicle is not a smart investment. Instead, explore your options with a single auto insurance policy.

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 because they 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.

Finding a Multi-Car Insurance Provider That Works for You

Finding the right car insurance provider to fit your needs requires some due diligence on your part. Start by getting multi-car insurance quotes from a few reputable companies. Shopping around with different providers is the best way to effectively compare costs, coverage amounts, and the multi-car discounts that may be available to you.

In addition to checking coverage amounts and the cost after adding in multi-car discounts, ask insurance companies what other savings may be available if you ultimately select their coverage. Some insurance companies offer discounts for having other policies, like homeowners insurance or renters insurance, while others may take a few dollars off after you complete a safe driving course. These discounts can add up to significant savings, above and beyond what the multi-car discount may offer.

Benefits of a multi-car policy

Why should you consider multi-car coverage? Here are a few of the perks you enjoy when you choose this type of policy:

  • Savings: Compared to getting individual policies for each vehicle, you can expect to pay significantly less by getting a multi-car policy. In the same way insurers offer discounts for bundling multiple policies together (e.g., home and auto), they also extend your savings when you insure multiple cars together. 
  • Convenience: Instead of having to manage multiple auto insurance policies — each with their own premiums and due dates — a multi-car policy streamlines things for you. With this option, policy maintenance is simplified. 
  • Stacking coverage: Some insurers will stack coverage when you get a multi-car policy. If you had a specific coverage limit with one car, they may double that limit when you add a second car. To find out if you can get more protection with a multi-car policy, ask your insurer about stacking coverage. 

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