Maximize Your Savings: A Comprehensive Guide to Multi-Car Insurance Policies

Multi-car insurance policies offer consumers a chance to save some money on their auto policies. If your family owns more than one vehicle, it may be wise to put them all on the same policy.

Of course, there are some situations where the benefits of multi-car insurance policies aren’t worth making changes to insurance policies. And today, the experienced team of licensed insurance agents at Einsurance.com is ready to help you navigate these waters.

As always, this piece explores auto insurance topics for US consumers in an unbiased, fair manner. We aim to educate the public and help them choose the most appropriate and most affordable auto insurance policies.

Read on to learn:

• What is multi-car insurance?
• Things to consider when shopping for a multi-car policy
• About multi-car insurance savings
• Multi-car insurance discounts and other discounts you might find

And feel free to reach out with any questions you could have.

What is Multi-Car Insurance?

These auto policies are designed to help consumers save some money when insuring more than one vehicle. In the most traditional sense, we think of one person who owns several vehicles; or a family that owns multiple vehicles.

You may hear them called:

• Multi-car insurance
• Multiple car insurance
• Multiple vehicle policy
• Multi-auto policies
• And similar variations

Ultimately, multi-car insurance policies can benefit both the insurer and the insured. The customer can get a better price and make account management easier by dealing with one company. The auto insurance company gets to carry more policies and build relationships with people who may need more insurance.

Who Can Buy a Multi-Car Insurance Policy?

If you own more than one vehicle and they’re all parked at the same location, you can buy a multi-car insurance policy. But they aren’t always a great choice for every family and every situation.

Let’s consider some issues that could crop up when you’re shopping for multiple car insurance policies.

Things to Consider When Shopping for a Multi-Car Policy

Some vehicles — and some drivers — are more expensive to insure.

We must look at these points from the perspective of the insurance company. Expensive sports cars and muscle cars, for example, move fast and may be driven in a less responsible way. And unsafe drivers with multiple DUIs and accidents are also costly to insure.

Why Expensive, Rare and Powerful Vehicles Cost More to Insure

Auto insurers keep very detailed databases. They know the accident rates and claims expenses for every auto on the road.

For instance, car insurance companies know a rare Porshe 918 Spyder has a top speed of 214 mph and will be expensive to repair after a wreck.

They also know a 1,025 horsepower Dodge Demon can cause a lot of damage when mishandled. (Remember, insurance isn’t just about fixing the vehicle, it pays for damages your vehicle could cause.) And since there were only 3,300 of these made, parts might be hard to find.

Electric vehicles (EVs) May be Expensive to Insure

According to the Insurance Information Institute (III), the first auto insurance policy sold in the US was in 1898, so the auto industry is almost 130 years old today.

EVs are relatively new on the market. Insurance companies don’t have a century of data to consider when insuring EVs, meaning they could face extra risks.

For instance, there have been a handful of cases when EVs exploded / spontaneously combusted during heavy tropical storm weather. These wild card situations make auto insurance companies very uneasy, and consumers may pay more for that extra risk.

Furthermore, EVs can be costly to insure because they:

• Are very heavy
• Accelerate rapidly
• Require specially trained mechanics to repair
• And have some very expensive parts, like batteries

Ultimately, it may be more affordable to keep electric vehicles on a separate policy.

Classic Autos, Show Cars and Parade Vehicles Might Qualify for Cheaper Insurance

On the other end of the spectrum, we see classic cars. They may not belong on your multi-car insurance policy.

Insuring Classic Cars

Let’s imagine a restored 1957 Chevy Impala show car, valued at $150,000, for example.

This classic car is not a “daily driver.” It spends most days tucked away safely in the garage and heads out to a few car shows every year. Maybe the grandkids take it to prom, and the car gets used in a parade or two.

This vehicle is usually not a good candidate for a multi-car insurance policy. It only travels a few hundred miles per year, is usually driven slowly, and has a very high value. A typical insurance company may have a hard time valuing a 70-year-old Chevy at $150,000.

In sum, this type of vehicle probably deserves a classic car insurance policy.

Now that we’ve explored some vehicles that might not fit on a multi-car insurance policy, let’s talk about some drivers that can be hard to insure.

Some Drivers Might Need a Separate Policy

Driver behavior and claims history are other key points tracked by auto insurance companies.

Young Drivers, Unsafe Drivers, DUIs and Claims

Imagine a family of three. Mom and Dad are in their 50s, and their 19-year-old son is licensed and driving. We’ll call him Thomas. This family has a multi-car insurance policy, as everyone has a vehicle to drive.

One day, Thomas has a horrible wreck, totals his car, and injures four people in another vehicle. Ambulances, fire trucks and law enforcement arrive, and they learn Thomas was drinking and driving.

It’s a sad situation to imagine, but not uncommon. In 2020, 29% of teens ages 15 to 20 injured in car accidents had a measurable Blood Alcohol Content (BAC.)

Thomas is now a huge risk to any insurer, and his auto insurance will be very expensive for a long time. Remember, he is now:

• A young, inexperienced driver
• A male under age 24 (yes, this is a higher risk rating among insurers)
• Someone who has caused significant personal and property damage
• Burdened with a history of DUI (which can last his record for five to 10 years, depending on the state)

A year passes. Thomas has paid his fines, served a few days in jail, attended some counseling and gotten his license back. He buys the cheapest car he can find and pays cash, but the family insurance company will not insure him on the multi-car insurance policy. After paying for auto repairs, a car loan, hospital bills and other expenses, we don’t blame them.

High Risk Drivers May Need to be Excluded from a Multi-Car Policy

In this situation, Thomas needs to find a separate car insurance policy. There are insurers willing to accept his business, and Einsurance can help you find them.

But Mom and Dad will need to exclude Thomas as a driver on their vehicles. That means Thomas cannot ever drive their cars, even to move them in the driveway.

These are just a few situations that one should consider when shopping for a multi-car insurance policy. Now, let’s assume the consumer isn’t dealing with any of these issues and speak more on the benefits and savings of multi-car insurance.

About Multi-Car Insurance Savings

If you have a reasonably safe driving record and several vehicles to insure, you will probably save some money with a multiple car policy.

Remember, auto insurance companies prefer individuals and families who:

• Have very few accidents and claims
• Own several assets to insure
• And behave in stable, safe, reasonable ways

If you own several vehicles, you likely:

• Are employed
• Will own more insurable assets in the future
• Will be interested in other policies, like life insurance, homeowner’s, or renters insurance

So, you could think of multi-car insurance as a marketing device used by auto insurance companies. These insurers offer discounts for multiple cars, because it attracts the sort of business they prefer in the long run.

Let’s move to the bottom line and explore potential savings.

How Much Will You Save with a Multiple Car Insurance Policy?

There is no way we can provide you with an exact answer to this question.

Your potential multi-car insurance savings will be affected by:

• Your state laws
• Your address and local claims
• Your personal driving history
• The make and model of vehicles insured
• The values of those vehicles, and the debt owed on them
• Various extra endorsements you select (like rental car coverage)
• And the ages and genders of drivers in your household

As experienced insurance agents, however, we could guess that you will save a few hundred dollars every year by insuring several autos on one policy. And according to Bankrate, some consumers save 10-25% on their yearly insurance bill. It’s definitely worth getting some quotes!

Since you’re interested in saving money, let’s talk about multi-car insurance discounts, and some other discounts you might discover when getting new auto insurance quotes.

Multi-Car Insurance Discounts and Other Discounts You Might Find

Multi-car insurance discounts might save you considerable cash every year, especially if you have many vehicles. Someone who owns eight or 10 cars, will probably see tremendous savings over buying 10 individual policies.

As you’re shopping around for multiple car insurance, be sure to ask for any other discounts.

Other Auto Insurance Discounts

Multiple Lines Discounts & “Bundles”

We’ve already mentioned that insurance companies love customers who need multiple lines of insurance. A client who has several cars, a motorcycle, an RV, a home, and life insurance is their favorite sort of client!

You’ve probably seen major insurers like Progressive marketing these “bundles” on TV, and nearly every major insurer offers a similar program. A multiple line discount can help you save money on every policy you buy.

Pro tip: If you end up “bundling” several lines of insurance to one provider, be careful with your whole life insurance policies. Those policies build a cash value that you may lose by signing a new whole life policy elsewhere.

And remember, once you’ve “bundled” all your products with one insurer, it can be a huge hassle if you choose to leave them later. You’ll need lots of quotes on all your stuff.

Safe Driver, Good Driver & Excellent Driver Discounts

The verbiage and requirements vary among the states, but most auto insurance companies offer discounts for safe drivers, those with great driving histories, and many years of good driving behavior. Be sure to mention your excellent driving history when shopping for insurance.

Good Student Discounts

A high school or college student might earn some extra discounts for their great grades. As mentioned above, insurers love a customer who behaves responsibly. Someone with terrific grades probably studies hard, goes to bed on time, and avoids rowdy college parties.

You’ll need to provide your student’s report cards a few times a year, but the savings make this legwork worthwhile.

Professional Discounts

Some auto insurance providers offer discounts for people in certain professions.

Ask about these if you are:

• A financial professional, certified public accountant (CPA) or insurance agent
• A healthcare professional, including nurses
• A teacher or other certificated professional in education (school counselor)
• Law enforcement
• Scientist

You’ll need to prove your employment and education status to get these types of discounts.

Our Final Thoughts on Multi-Car Insurance

Multi-car insurance might be a good fit for your family, or you may need something else. We understand.

At Einsurance.com, our goal is to match consumers and insurers. We can help you find multi-car insurance policies, classic car insurance, insurance for teenage drivers, car insurance for seniors, and everything in between.

We encourage you to try our simple online quoting tools to find the right insurance for your needs! We work with hundreds of organizations, and they’re seeking a variety of clients. Every family is unique, and we can help you find the right policies at the right prices.