What multi-car insurance is and how it can save you money

Published on Jul 24, 2014
What multi-car insurance is and how it can save you money Image

Many families today have more than one vehicle; in fact, it has become the norm, especially in families with teenage children who may have their own vehicle. Multi-car insurance policies are gaining in popularity for just this reason. In many cases, this type of policy can help you to save money on insuring several cars at once as well as simplify your auto insurance policy by putting everything in one place.

How Multi-Car Insurance Works.

Multi-car insurance policies are not the same as a multi-car discount on your policy. A multi-car discount is simply a percent off that an insurance company gives you for having more than one car insurance policy in place with the same company. A multi-car policy on the other hand is actually one single policy on which you are insuring more than one car.

With separate policies you will have a different premium to pay for each car and a completely separate policy for each. Having a single policy can make handling your car insurance a lot simpler, and in some cases can save you some money as well.

This new type of policy is becoming more popular as more insurance policies are offering it. Multi-car insurance policies can cover family policies for all related people living in the house as well as students away at school. It can also cover a range of different types of vehicles depending on the rules of the insurance agency, including cars, vans, and motorcycles.

Saving on Insurance.

In some cases a multi-car policy can mean a lower overall insurance rate, but there are a few things to consider. First of all, if all of the cars on the policy renew at the same time, as is often the case with this type of policy, you might find that renewal a large expense all at once rather than paying individual renewals as they come up throughout the year. This can often be mitigated with payment plans to allow you to spread out the cost over the year. You should also find out how adding or removing a car impacts renewal dates and premiums.

You should also find out how a claim on one vehicle will affect the overall rate, since all of the cars are on the same policy. A multi-car policy still allows for rating of each driver to the vehicle they drive regularly, which means that claims and tickets should still affect only that driver or vehicle. Because everything is on one rate however, you should be aware of how an increase against one vehicle affects the overall premium.

Comparing the Options.

The best way to determine if a multi-car policy is best for you is to compare the premiums against insuring each car on its own, and to consider the questions above and their impact on long-term rates and costs.

Having a single policy can make things easier on you in more ways than one. Beyond easing the load on your budget, having only one policy to keep track of makes things quite a bit simpler. You will only need to track one premium payment and in some cases one renewal date.

A multi-car insurance policy is a great option for any family with many cars to insure to consider. While not every insurance company offers this type of policy, more and more companies are adding it as it is an increasingly popular solution for keeping track of multiple cars insured in the same household. To find out if this policy type is right for you, it's best to obtain a few quotes and find out the company's policies in terms of claims and renewal dates. You can then compare the long term cost of a multi-car policy to that of traditional individual policies and make an informed decision.


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