Multi-car insurance policies cover multiple vehicles that are kept in the same place. Multi-car policies are very popular as they often offer a discount. Multi-car policies are often cheaper than buying separate policies for each household member. Multi-car discounts are offered to drivers with multiple vehicles insured by the same insurer. Most car insurance companies offer multi-car discounts.

Multi-car discounts are a good way to reduce the cost of comprehensive, collision, liability, and comprehensive insurance by between 10 and 25 percent. Let's assume you are married and driving. You'll be eligible for a multi-car discount if you and your spouse have a car and the same insurance policy covers both cars. You'll receive an additional discount if you purchase a car for your teen driver and add it to your insurance policy.

How To Get Multi-Car Policy?

Call your insurance company to get insurance policy. You can also use the online portal to add a vehicle. You are only updating an existing policy to add a vehicle and not purchasing a new policy.

Before you call or log on, you will need the vehicle identification number (VIN), the registration, and possibly other information like make, model, mileage, etc. You should also have details about previous insurance policies that covered the vehicle, such as your spouse's. Insurance companies may require the following information to be eligible for multi-car insurance policies:

• All cars must be registered at the same address
• The policy covers a limited number of vehicles
• Vehicles that the same person can own
• Regularly, cars must be parked at the same address overnight.

Multi-Car Insurance Policies And Other Drivers

Insurance companies may allow you to combine car policies with family members, even if they aren't your immediate neighbors. However, you won't be able to add your friend's vehicle to your policy, and they likely won't allow you to add your car to theirs. Most insurance companies expect multi-car policy autos to be driven by family members.

It may be possible to add the car of a boyfriend, girlfriend, roommate, or fiance to your insurance policy. Ask your insurance company to determine how often you drive each other's vehicle. If you have recently married or joined a domestic partner, you might consider comparing insurance policies. This will allow you to compare the most affordable and customer-oriented policies. Ask the two insurers to compare multi-vehicle policies and see which one makes sense for you.

What is the Multi-Car Discount?

Your rate will likely change if you add a vehicle during the middle of a policy year, just like if you added a driver or changed your coverage. Some insurers may offer deep discounts if you add a second or third car to your auto policy mix. In Michigan, for example, insurers offer multi-vehicle discounts, usually between 4% and 30%. However, discounts can reach up to 64%. These savings could be equivalent to policy savings for cars equipped with anti-theft or airbags. The discount ranges so widely that you might want to compare insurance rates before you add a car.

Additional Benefits

Multi-discount policy management is easier with only one monthly bill. If you have a multi-car policy, you may be able to "stack” your coverage for uninsured and underinsured motorists. Stacking coverage allows you to increase your coverage by multiplying it by the number of vehicles in your policy. This option can increase your accident coverage but may come at a higher cost.

What are the Downsides of Multi-Car Policy?

Although you will receive a discount on multiple vehicle insurance, it is still more expensive to insure one vehicle than two. You may pay less for multiple cars because of the discount. Ask your insurer about discounts for teen drivers, especially if the teen owns a car. Insurance companies sometimes assume that teens drive the most expensive vehicle. This could increase your premium. Some insurance companies will assign teens to the vehicle they drive.

You may need separate policies if you own multiple vehicles in different states. Each state has its insurance regulations and rules. Many factors can affect coverage, such as minimum coverage requirements or insurance companies not providing coverage in all states.