What Is the Multi-Car Auto Insurance Discount?

Is there more than one car on your property? Insurers could give you a multi-car discount. Here's how it works and how much you can save.
Residential house with three cars in the driveway

Do you own more than one car? If you do, you may be able to get a big discount on your car insurance. Auto insurance providers offer several types of discounts that you can take advantage of. You may be eligible for plenty of ones that you didn’t even know about.

One common way to save money is by getting the “multi-car” or “multi-vehicle” discount. This means insuring more than one car on the same policy. Typically, all of your vehicles will need to be at the same household to be eligible for the discount.

The multi-car discount is similar to bundling your insurance policies under one carrier for a discount. There are plenty of benefits to insuring all of your cars under the same policy. It can potentially save you money and stress when you’re trying to insure your cars.

This article will help you understand how to take advantage of the multi-car discount. It includes a breakdown of all the benefits that you can receive. We’ll tell you how to be eligible and if there are any exceptions. You’ll also learn who offers this discount and get a ballpark estimate of how much money it can save you.

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Multi-Car Discount Benefits

There are several reasons why you should think about getting a multi-car discount. Of course, you will receive a pretty sizable discount on your car insurance. But there are other benefits that you might not have thought about. Here’s a list of advantages to come if you get the multi-vehicle discount:

You’ll Save Stress

Managing your finances can be stressful. Insurance can be complex and easy to lose track of. This is especially true if you’re using more than one insurer for your various cars and policies.

Insuring multiple cars under one policy will make your finances much easier to manage. You’ll be able to only make one payment each month for everything that you’re doing with that insurer. This makes it less likely for you to miss any monthly premiums and ruin your credit score or insurance history.

There’s Only One Deductible to Worry About

When you insure all of your cars under one policy, you only have to pay one deductible if an accident or random disaster damages them. Not insuring your cars under one policy would mean that you’d need to pay more than one deductible. Having a multi-car policy just simplifies the whole process so you have less to keep track of in the wake of a disastrous event.

You Can Stack Coverages

Another benefit of a multi-car policy is that you can stack your coverages. This means that you have the option to combine coverage limits for all of your cars. For instance, you could have limits of $25,000 for two cars. Stacking the two would amount to a $50,000 total coverage limit. Coverage stacking is usually for the bodily injury part of uninsured and underinsured motorist (UM and UIM) coverage.

Not all states allow you to stack coverage limits. But some states do allow or even require it. Here are the states that allow stacking under one policy:

How a Multi-Car Policy Works

A multi-car policy is where you insure more than one of your cars under the same policy. These cars usually need to be part of the same household for them to be one policy. Multi-car policies don’t limit the types of coverage types that you can add. You should be able to have the same types of coverages as a single-car policy.

Not all coverage types cover each car at once. There are some coverage types that you’ll need to add for each car with different limits. On the other hand, some coverage limits will match or share for all of your cars. Here are the coverages that all of your cars will share:

  • Liability insurance
  • Uninsured and underinsured motorist coverage
  • Personal injury protection
  • MedPay
  • Rental coverage

Now, here’s a list of the coverages that you can have with a multi-car policy, but at different limits:

How to Add Another Car to Your Policy

Adding another car to your insurance policy is a pretty straightforward process. The first step is to call your insurer or set your policy up online. Then, you’ll have to let them know that you want to add the car to your policy. You’ll also need a few key items from your car, and you’ll be all set. Here’s what you should have on hand when you add a car to your policy:

  • Vehicle identification number (VIN)
  • License plate number
  • Car’s make and model
  • Knowledge about your car’s mileage and condition

What Types of Cars You Can Add

Adding a car to your policy is pretty easy, but there are some rules for what types of cars you can bring on. Here are the types of cars you can add:

  • A second car. Adding a second (or more) car that you own is simple. By following the steps above you should easily be able to add it to your policy.
  • A brand-new car. You’ll be able to add your new car to your policy. But keep in mind that insurers often give you a grace period of about a week to a month to add it.
  • A used car. If you’ve just bought a used car, you should be able to add it. You’ll also have a grace period of about a week to a month depending on the insurer.
  • Another person’s car. You’ll be able to add another person’s car if you both live at the same address. The vehicle also needs to be at the same address as you live. You’ll also need to list this person as a driver on your policy to add the car. Be sure to have their driver’s license number and social security number ready when you do so.

Multi-Car Policy Exemptions

You should be able to add most types of cars to your policy, but there are some that you won’t be able to add. These usually aren’t standard cars and have some sort of specialty. Here are the types of cars that you may not be able or want to add:

Exotic Cars

Your insurer may not let you add your exotic car to your policy. For example, Progressive says that they don’t insure cars that are worth more than $150,000 in value. This means you wouldn’t be able to add it to your policy and get the discount. In general, exotic cars will need a special type of coverage.

Classic/Collector Cars

Another type of car that you may not be able to add to your policy is the classic/collector car. These cars are similar to exotics in the sense that they may be of high value. Or you might want to use a specialty insurer rather than a regular carrier because they offer more protection. If you have a classic car, it may not be eligible for a regular policy because of its value or features. Make sure to check with your insurer if you’re thinking of adding a classic or exotic car to your policy.

Who Offers the Multi-Car Discount

While you can have a multi-car policy with just about any provider, not all provide a discount. Though, many insurance companies do offer it. Some insurers will give out a higher percentage discount than others. Below are major companies that offer the multi-vehicle discount:

With these companies, you should expect to save anywhere from 4-25% for having a multi-car policy. Discounts vary based on the state that you live in. Be sure to speak with your agent about how much you can save from having a multi-car policy.

Frequently Asked Questions

Q: Our kid just took our second car with them to college. Can they remain on our policy, and do we still get the multi-car discount if we have different addresses?

A:  You might not be able to keep the multi-car discount if your child takes the car away to college. If you list their college as their primary residence, then you might not be able to keep it. The only way to keep it is to leave your kid’s primary residence as your home address. If your child isn’t going to be driving many miles and will be in a low-risk area, you may also save money. You’re going to have to weigh your options and see what will give you the best savings.

You may also be eligible for a “student away at college” discount in this case. This could help to offset the loss of your multi-car discount.

Q: Do auto insurance companies offer a discount when you have multiple cars to insure?

A: Yes. Insurers call this the multi-car or multi-vehicle discount. You can save a good amount of money by adding multiple cars under one policy. You’ll also enjoy the added benefits of lower financial stress.

Q: Is insuring a second car expensive?

A: It might be. But it could also be cheaper for you. The multi-car discount could give you up to 25% in savings. This isn’t something to look past. You should consider speaking with your insurance agent about how much you can save. Then, you could get a quote for your insurance with this new car on your policy. This way you can see which option is cheaper.

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