What you need to know about insurance for multiple cars

Car insurance is expensive, so adding an additional car to your policy will make the price go up, but not as much as you might expect due to multi-car discounts offered by most insurers.

What you need to know about insurance for multiple cars

Log out of that shared Google calendar and take that passive-aggressive note down from next to the key rack! Having multiple cars makes it easier for everyone in your household to get where they’re going. But having multiple cars means insuring multiple cars. The price of car insurance keeps going up, so insuring more than one car can hurt your wallet. Luckily, many car insurance companies offer insurance policies with a multi-car discount. By putting multiple cars on the same insurance policy, you can earn significant discounts. Plus, multi-car insurance means you only get one bill for insuring all your vehicles. That makes paying your premiums simpler. 

If you have more than one vehicle at home, multi-car insurance may be a good option

Multi-car insurance is when you insure more than one car on one policy. Typically, a car insurance company offers this type of multi-car insurance to cars that are “garaged” together. You don’t have to have a garage to take advantage of this type of insurance, though. If you park or store your multiple cars at the same address, you should insure them through a multi-car insurance policy. The multi-car discount that comes with this type of policy can be up to 25 percent off. On top of the potential for significant discounts, multi-car insurance policies collect your premium bills into one big bill, making your finances simpler and easier to keep track of. 

What are the requirements for a multi-car discount? 

Each car insurance company offers slightly different multi-car insurance. The requirements vary a bit between companies, but all multi-car policies require the vehicles to be stored at the same address. From there, an insurer might offer a multi-car discount if the owners of the cars live in the same household. Others require the car to belong to people who are related, like family members or spouses. Insurance companies usually limit multi-car discounts to four or five vehicles. If you cohabit with an impressively large family, or have lots of housemates with more than five cars, you might need to split your cars up over multiple multi-car insurance policies! 

Take note that multi-car insurance policies are, as the name suggests, for cars only. (Well, trucks are okay too.) If you have a different kind of vehicle you want to insure alongside your car, like a motorcycle or a boat, you’ll have to get a separate policy. In that scenario, you could still earn a discount by bundling your policies

How does coverage work on a multi-car insurance policy?

Choosing multi-car insurance coverage works similarly to choosing coverage for a single car. You can choose your state’s minimum insurance coverage – or raise your limits and add other coverage types like comprehensive. (Learn about the types of car insurance coverage.) When picking a deductible, you can set them at different values or the same value. You might opt out of some optional coverages like rental car reimbursement. Rental car reimbursement covers renting a car while your car is out of commission from an accident. You can avoid paying for rental car reimbursement coverage by driving one of the other cars in your household while the other car is in the shop. 

Some coverages for multi-car policies affect all the cars on the policy. For example, your liability coverages like bodily injury and property damage apply to any vehicle in your multi-car policy. Other coverages are specific to individual cars. Since each car has a different value and repair cost, you might want to pick higher or lower coverage levels for them. For example, the lender for a new car you’re leasing might require full coverage insurance as part of your lease contract. But if your other car is old and not worth much, it wouldn’t make sense to pay for full coverage insurance for it. You can do that in your multi-car policy! 

Is there a limit to how many cars I can have on my policy?

Yes. Most car insurance companies offer multi-car discounts for up to four or five cars. It’s rare for one family or household to own more than five cars unless they’re running a business. To insure a fleet of cars you use for work, you need commercial vehicle insurance, not personal car insurance. If you’re not sure what type of insurance you need, or you need advice about multi-car insurance, you can always talk to your current insurer or reach out to an independent insurance agent at Surround Insurance

This is general information based on questions our customers ask us. It may not be right for your specific situation. You should get some advice from a licensed insurance agent (like us!) before you make a decision on your own insurance.