You Can Save Money With Multi Car Insurance Policies
January 24, 2017
Multi car insurance policies are created to provide significant discounts for individuals and families who own and operate more than one vehicle at the same address. These policies are designed with discounted premiums as an incentive for people to insure all of their vehicles with the same company.
Although these policies have a maximum for how many cars you can add, some companies do allow up to ten cars. Considering most families only have two or three cars, unless you’re a car collector, you’re not likely to reach the maximum.
The discount offered by a multi car policy doesn’t just apply to the premiums paid for your additional cars. In fact, whenever you add a car to your policy, the premiums for each car significantly drop. Multi car discounts are how car insurance companies reward you for your loyalty.
Who is eligible for multi car insurance policies?
Car insurance companies provide multi car insurance to individuals and families as long as the cars listed on the policy reside at the same address. Sometimes, companies allow housemates and friends to insure their cars on the same policy as long as they can prove they live at the same address.
The benefits of multi car insurance
If you have multiple cars, you likely purchased them separately over a period of time. The time in between car purchases means your car insurance premiums could be vastly different, from separate providers to different renewal dates.
Paying your car insurance for multiple cars can be a hassle when you have policies with separate companies and bills due on different dates. Also, when you’re dealing with multiple companies, your coverage limits are different, and your costs out of pocket can be extremely high.
Easier bill management
If you’re like most people who have several bills, it can be challenging to keep track of them all. When you add your additional vehicles to a multi car policy from one company, your due dates can be synced and you won’t have to worry about forgetting when different policies are due.
While this won’t make your household bills disappear, it will make paying bills easier. Of course, syncing your renewal dates is optional with most policies and if you prefer to have separate renewal dates, you can.
Understanding your coverage for every vehicle
Another benefit to insuring all of your cars with the same company is that you don’t have to keep track of what multiple companies cover for the same portion of your policy.
For example, you might have comprehensive coverage with a $300 deductible from two separate insurance companies, but only one company covers tire replacement. You’ll be out of pocket if someone slashes your tires on the car that isn’t covered.
Additionally, you might have roadside assistance from both insurance companies, but only one will bring you gas while the other will just tow you away. So if you run out of gas and get stuck in the car whose policy will only tow you, you’ll be forced to use one of your yearly tow allowances just to get to the gas station.
When you have all of your cars insured by the same company, you only need to keep track of what level of coverage you have for each vehicle. When you want to know what, specifically is covered, you only need to make one phone call or visit one website to find out.
A “no claims bonus” could save you even more
Many insurance companies offer “no claim bonuses” for not filing claims over a certain period of time. When you don’t file any claims, your insurance provider doesn’t have to pay. The company sees you as a low-risk customer, and because you’re saving them money, they return the favor in the form of a bonus.
When you have a multi car policy, one car’s claim doesn’t affect the no claim bonuses for the other cars. So, if you make a claim on your Honda, but your spouse never makes a claim on their Toyota, they are still eligible for the bonus.
Some no claim bonuses can take five years to generate. However, some insurance companies have been known to reduce premiums by up to 75 percent for people who go five years without filing a claim. That’s a decent bonus!
In order to maintain their no claim bonus, some people choose to pay out of pocket for minor damage rather than make a claim and lose their bonus.
For example, say you back out of your driveway and lightly tap a pole that scratches your paint. Your quote to fix it is $400, and your deductible is $350. If you file a claim, your insurance provider will only pay $50, but that $50 will raise your rates and cause you to lose your no claim bonus.
Sometimes it can cost more to make a claim than it can to just pay to fix the damage. We ve got a few more tips on deciding whether to file a claim. too.
Multi policy discount for families and students
When you have a family that includes children, it’s almost guaranteed that you’ll have more than one car. With the discounts offered for adding additional cars to your policy, you can count on having some extra cash freed up at the end of the month that you can spend on your family.
The best part is that if you’ve got kids who have moved out on their own, or are attending college somewhere else, most companies will allow you to keep them listed on your policy. Then, when they come home or come to visit, they can drive you around town!
Multi car insurance discount
Because multi car discounts reward you for your loyalty, there’s no reason not to add your second car to your existing policy. But before you do, you may want to get multiple quotes from different car insurance companies to find the best deal.
Your current insurance provider might have been the best deal you could find for a single vehicle, but you may find other insurance companies that provide a better deal for multiple cars.
Try our car insurance quote comparison tool —it’s a great way to get multiple car insurance quotes at once and start saving money on your multi car insurance policy today.