November 25th, 2013
Okay, so let's say your family has two cars with multiple drivers. Or maybe you're the Batman and no one else is touching the fleet of Batmobiles you're storing underground. Either way, when you have more than one car, you need to get auto insurance coverage for each vehicle and driver.
Many American households have more than one car, meaning they will need to get a multi-car insurance policy. Insuring two cars together with the same provider and policy is cheaper than doing both separately. When we think of buying in bulk, maybe warehouse stores like Costco and Sam's Club pop into mind. The savings associated with buying in higher quantities can be great, and the same thought can be applied to car insurance.
For those who own more than one car - here's looking at you Batman - multi-vehicle policies may be the best way to cut down on the expense of car insurance.
How it works
The best way to think of multi-car insurance is like a big umbrella where everyone and every vehicle is covered under the same policy. Overall, the policy can be simpler, with one set of paperwork that covers all drivers and cars listed. A multi-car policy usually covers between two and five cars as long as they are registered to the same address.
Why it's cheaper
For some insurers, they might view multiple cars as more business when you get a policy together instead of going to different providers. For this reason, many companies are happy to offer a discount for multiple drivers and cars.
Policies that have several drivers on them risk the possibility of rising rates over the years, especially if there are multiple claims. To keep premiums low, keep the person listed for a vehicle someone who is more experienced, like a parent, if there is a teenager or a younger person on the policy.
When you're shopping for a multi-car policy, there is the risk that each vehicle insured could have a different renewal date. You don't want to wait for each of the cars to finish their old policies before bundling together in a new one. With a multi-car policy, all vehicles will come under coverage when it is time for renewal once the first car is already being covered. Policies typically cover vehicles for 12 months, so they will come up for renewal at different times if they started in different months.