Car Insurance for Multiple Cars: The Multi Car Discount

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UPDATED: Jun 29, 2022

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Written By: Jeffrey JohnsonUPDATED: Jun 29, 2022Fact Checked

A multi car policy is a car insurance policy that covers more than one vehicle on a single auto insurance policy. Most car insurance companies offer this multi car auto insurance discount as a way to save 2% to 10% off each additional car. This auto insurance discount is restricted to vehicles registered to your household only!

Adding a Car to a Multi Car Policy

If you would like to add another vehicle to your existing auto insurance policy, it can be as simple as contacting your car insurance company. Give them the vehicle identification number (VIN) of the car you wish to add. This VIN# gives the insurance company all the necessary details about your vehicle, which enables them to determine how that car will impact your auto insurance rate.

Most insurance policies give you up to 30 days after your initial purchase of car insurance, to add another vehicle and obtain car insurance for multiple cars. During this time, your additional vehicle will be covered with the same type and amount of coverage you presently have on your first car.

BE CAREFUL! If you have only one car and that car has a liability coverage only policy, then your new vehicle will only have liability coverage. This means, if you were in an accident, the collision damage to your car would NOT be covered! Make sure your existing coverage is sufficient for your new vehicle, and change your policy if it isn’t.

Many carriers have many different guidelines about how many cars can be on one multi car policy. Some carriers allow as many as ten. Some only allow four and then require you to have a separate policy for the remaining vehicles. Whatever the number, ask what your multi car discount will be for each additional car. If your current car insurance policy does not offer a car insurance discount for a multi car policy, you can look to save money by shopping for a new policy.

Drivers Covered in Car Insurance for Multiple Cars

Drivers in your household are automatically covered to drive all cars listed on multi car insurance policy. Typically you do not need to specifically add each driver every time you add a car, however, there may be circumstances when you want to specifically separate a driver. For example, if you have a teenage driver that just obtained their license, you want to call your insurance company. A teenage driver can cause an increase in premium, so it may be cheaper to separate your teenager’s car, and your teenager, from your multi car insurance policy.

You may be adding a new driver to your multi car policy because you just got married. Congratulations! You just received another car insurance discount! Most carriers give a lower rate to drivers that are married. Be sure to inform your company that you are adding the car because you just got married and give them the information on the vehicle and your spouse to receive your multi car discount.

What Happens to the Multi Car Policy After an Accident?

If you get into an accident with one of your vehicles and the insurance company decides to increase your rates due to that accident, most carriers will charged an increase in premium to that one vehicle, which can increase your overall car insurance payments. Upon receiving your renewal notice, you can compare your increased rate with your previous rate increase for the one car involved in the accident.

TIP: Ask your carrier how long this car accident increased rate will last for the one car. Then ask if there is anything you can do before the end date to lower your overall car insurance premium cost. If your car insurance company does not have any options, you may be able to save money by shopping for insurance quotes online and changing policies!

To find the best multi car discount on your car insurance policy, click her to visit the Free Advice auto insurance quote center!.

For more information about getting the right car insurance policy to fit your needs, check out the following articles:

Click Here for a FREE car insurance quote today!

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Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

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