customersMaybe you just moved in with someone and you’re looking to combine your insurance costs, or your teen driver just received a new vehicle after obtaining their license and needs to be added to your policy, or maybe you purchased a second or third car that requires insurance. With any of these scenarios, you may be unsure of ways you may be able to reduce costs associated with insuring your vehicles and drivers.
A policy that may provide coverage for multiple vehicles may be less costly and more efficient than purchasing individual policies for each vehicle. Let’s look at what a multivehicle policy is, the potential benefits and drawbacks of a multivehicle policy, and how you can find an auto policy that suits your unique needs.
What is a multivehicle insurance policy?
A multi-car insurance policy is an auto policy that may provide coverage for multiple vehicles in your household. These policies typically apply to passenger vehicles like cars, SUVs, and trucks. Some insurers may include trailers under multi-car insurance policies. In some states and subject to specific terms and conditions, some insurance carriers may offer discounts for multi-vehicle policies.
A multi-car insurance policy isn’t the same as bundling. “Bundling” refers to purchasing multiple types of policies that may provide different coverages, like homeowners’ insurance and auto insurance, through the same insurer.
Which types of vehicles can Insure under my personal auto insurance policy?
If your household owns multiple vehicles, it may be possible to add all these vehicles to the same auto insurance policy. Your insurance company may evaluate certain factors to determine if multiple vehicles can be added to the same personal auto insurance policy, including whether:
- The vehicles are owned by the same individual or family member.
- The vehicles are registered at the same address.
- The vehicles are consistently parked overnight at the same address
Insurers may have different guidelines regarding the types and characteristics of vehicles that can be added to a personal auto policy, so it’s important to consider your unique needs when trying to find the carrier that is right for you.
Some insurers may only require vehicles to be registered at the same address to be listed on the same auto insurance policy, so in some cases, unrelated roommates may be able to be insured under the same auto policy. Some insurers may only offer multi-vehicle policies to individuals who are part of the same family. Some insurers may permit multiple vehicles that aren’t kept at the same address to be listed on the same policy if all the vehicles share the same garaging address.
For example, if your child parks, uses, and drives their car at college in another state, your insurer may still allow you to include your child’s car on your auto insurance policy. Some carriers may only permit you to list vehicles that are registered in you or your spouse’s name on the policy, which may result in other household members’ vehicles having to be insured under a different policy.
Generally, you cannot list business vehicles on a personal auto policy. Insurers may restrict a multivehicle policy to passenger cars for personal use. Vehicles for business use would likely need to be listed on a business auto insurance policy.
Talk to your insurance advisor to learn which of your vehicles may be able to be added to your personal auto insurance policy.
What are the benefits of having multiple vehicles listed on one policy?
A significant perk of a multivehicle policy is the potential for cost savings. Maintaining a multivehicle policy may be less expensive than purchasing separate auto policies for each of your vehicles.
Having just one policy and one insurer for all of the vehicles in your household can help to streamline the payment process as you can avoid juggling different auto insurance policies and insurers.
With one auto insurance policy, you may also be less likely to inadvertently miss a payment that results in a lapse in coverage as you may be able to avoid having to manage multiple bills associated with multiple policies. Moreover, with one auto insurance policy, you would have one renewal date for that one policy, which may reduce the amount of paperwork that you need to read and sign to maintain your insurance if you were to have multiple policies.
Will my coverage be the same for each vehicle?
All of your vehicles on the policy may have the same liability limits ; however, your vehicles may have different limits for collision and comprehensive coverage. The limits applicable to each of your coverages may vary by state and by insurance carrier, so it’s important to consider your unique needs when finding the policy that is right for you.
You might want different coverages and limits on your cars if your vehicles differ in value, if you use one car more often than the others, or if your vehicles have different features that might make them more or less expensive to insure. The likelihood of theft, cost of repairs, engine size and overall safety record associated with your vehicle may impact the cost of insurance. [1] If you have an older vehicle, subject to state requirements and other considerations, you may want to consider only maintaining liability coverage on that vehicle rather than also maintaining comprehensive and collision coverage on that vehicle. One of our Licensed Advisors can review your policy coverage limits for your vehicles and work with you to identify coverage limits that address your needs.
How do I find an auto policy that meets my needs?
Let InsuraMatch do the work for you. Our sales advisors will compare auto insurance quotes for you that take into consideration all of your vehicles to see which carriers can offer you the products that best addresses your needs. Ready to quote? Give us a call at 844-232-2700.