Your Guide to a Multiple-Car Policy (& How to Save)

Your household has more than one car. Maybe you have four or five cars! Now you're wondering: Is it cheaper to put all of your vehicles on one car insurance policy? Depending on the situation, yes—multi-car insurance can be one of the best ways to save on car insurance for multiple cars.

What is a multi-car policy?

"Multi-car" is defined as having more than one car insured on an auto insurance policy. You can insure up to six vehicles on the same policy in some states, but the maximum number of vehicles is usually around four. Keep in mind that this only applies to cars, vans, and trucks. Additional motorcycles, trailers, etc. do not count towards the "multi-car" status. (For those, you'll need motorcycle insurance or travel trailer insurance, not car insurance.)

A multi-car policy includes the same benefits as a single car insurance policy. The main difference between a single and multi-car policy is discount eligibility! Insure more than one vehicle on your policy, and you could qualify for a Multi-Car Discount of up to 25% from Direct Auto Insurance.*

Benefits of multi-car policies

Typically, the biggest benefit to insuring all of your vehicles on one policy is the savings! For example, with Direct, you could qualify for a Multi-Car Discount and save up to 25% on your car insurance. Direct Auto offers around a dozen car insurance discounts, but the Multi-Car Discount is one of the biggest.

You can do more than save money with a multi-car discount, though. You can also streamline your insurance so that your policy information and paperwork is all in one place. That means one bill, one payment, and one renewal date. It's simple!

How does coverage work on a multi-car policy?

All vehicles on a multi-car policy must meet the state's minimum requirements for car insurance. Depending on your state, that can include Property Damage Liability, Bodily Injury Liability, Uninsured Motorist, and sometimes Personal Injury Protection. With Direct, coverage must be written on all cars of a multi-car policy at the same limits.  

Beyond the state's minimum insurance requirements, each car can have different optional coverages. You could have Comprehensive and Collision on your spouse's car because it's leased, but not yours. Your insurance agent can work with you to choose the right coverage package for each vehicle on the policy.

So, who buys multi-car insurance?

Anyone who needs car insurance for multiple cars that are kept at the same garaging address might purchase multi-car insurance. The following are some examples of living situations where people would want to consider putting all of their household vehicles on the same car insurance policy.

  • Families with more than one vehicle: You drive a sedan, your spouse drives an SUV, and your teenager drives a hand-me-down station wagon. You all live at the same address, which is where you keep your cars. Big families with a handful of cars are great candidates for multi-car insurance!
  • Couples who live together: If you and your significant other live together and each own a car, you could save some money by cashing in on a Multi-Car Discount. You might be married, or you might not be. If you garage your cars at the same address, you could benefit from a multi-car policy and discount of up to 25%!
  • A single person with more than one vehicle: You love all types of cars! You have your everyday commuter car but also a heavy-duty pickup truck. As long as one of your vehicles doesn't require commercial auto insurance, you could be eligible for a multi-car policy and discount, too.

When not to buy a multi-car policy

It's typically a good idea to put all of the vehicles garaged at the same address on the same policy. But there are some situations where it may not be the right thing to do, or even possible to do.

For example, let's say you use one car for your small business. Maybe you're a contractor who drives a truck to work sites or a baker who delivers wedding cakes in a company van. In situations like this, you would need a separate commercial auto policy—even if you park your work vehicle at the same address as your other car.

You may also want to think twice about a multi-car policy if you have a temporary roommate and keep separate finances. If your roommate has a flashy sports car that’s more expensive to insure, it might not be the best idea to put both of your cars on the same policy.

Plus, it might be inconvenient. One person will be responsible for paying the whole bill. If that's you, you'll need to rely on your roommate to pay you his/her half. What if they move out in a few months? It could be annoying to call and change your insurance. Plus, if you don't have a great relationship with your roommate, asking for money or changing the policy could put even more stress on the relationship. 

Multi-car insurance from Direct Auto

Ready to add another car or driver to your policy? Then it's a great time to get an auto quote and compare car insurance companies. You might be able to get a better rate with a new company (like Direct Auto!). We want to help make sure every vehicle in your household is insured, even if it's not with us. That's why we ask you about your household members and drivers during the quote process. Call 1-877-463-4732, click, or come in today to learn more!

* The information provided in this blog is designed to give helpful advice on the topic discussed. It is not intended to provide legal or any other type of advice and is not meant to be a thorough discussion of every issue that a person should consider or may encounter.  Discounts vary and may only apply to certain coverages and are subject to terms and conditions and may not be available in all states or distribution channels. The Direct Auto & Life insurance carrier & agency members of the National General Ins. Grp., Winston-Salem, NC.

Guide to a Multiple-Car Policy