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While the number of cars you can insure on a single auto policy varies by carrier, you can generally have up to four vehicles on one policy. This is where multi-vehicle policies come into play, allowing you to insure all your vehicles on a single policy and enjoy a discount while you're at it. Here's what to know about insuring more than one car on your policy.
How Many Cars Can You Have on One Insurance Policy?
While there is no universal limit, most insurance companies will allow four or five vehicles to be listed on a single policy. Some companies may offer greater flexibility and accommodate more vehicles, while others may have stricter limitations.
To determine the exact number of vehicles (and drivers) allowed on a policy, it's best to consult with the insurance provider directly, or work with a licensed insurance agent who can help provide expert guidance tailored to your needs, often with multiple insurance carriers.
How Multi-Car Insurance Works
A multi-car insurance policy is a policy allowing you to list more than one vehicle on an insurance policy, and usually comes with a few discounts. These policies come with both benefits and disadvantages. Here are some key pros and cons to consider.
| Pros and Cons of Multi-Car Insurance | |
|---|---|
| Pros | Cons |
| Savings | Uniform coverage limits |
| Simplified management | Potential impact on claims |
| Flexibility and convenience | Not always cheaper |
| Potential for additional coverage benefits | One policy term |
Should You Insure Multiple Cars on the Same Insurance Policy?
Before deciding to opt for multi-car insurance, there are a few key aspects to consider. Let's take a closer look at some of the benefits and drawbacks a multi-car policy offers.
Benefits of Multi-Car Policies
- Savings: One of the most significant benefits of a multi-car policy is the potential for savings. Many top insurance companies offer as much as a 25% discount for insuring more than one vehicle on a single policy.
- Simplified management: If you ever find yourself in a situation where you need to manage or make changes to your policy, especially for multiple vehicles, having them all listed on a single policy is an advantage. It's much easier to keep track of renewals, payments and paperwork when you only have to deal with a single insurance company and policy.
- Flexibility and convenience: Multi-car policies typically offer more freedom when it comes to adding and removing vehicles from the policy. If all your vehicles are listed on different policies, removing one would most likely mean your policy will need to be canceled, as most companies will require at least one vehicle to be listed on the policy. If you then decide to purchase a new vehicle to replace the old one, with a short delay, you will be required to find a separate policy for the new vehicle yet again.
- Potential coverage perks: Some insurance companies offer additional benefits when listing multiple cars and drivers on a single policy. One such example is when a child gets their license for the first time. Starting their journey with insurance for the first time can be quite expensive, especially if they are listed on their own policy. Adding a teenager and their first car to an already existing policy will increase the costs of the policy, but most likely it will still be less than if they were to get their own policy.
Disadvantages of Multi-Car Policies
- Uniform coverage limits: On an insurance policy, coverage can be divided into two types: policy-level and auto-level coverage. The latter includes coverages like comprehensive, collision or roadside assistance, which can be selected specifically for each individual vehicle. Liability coverage is considered a policy-level coverage, meaning it is the same for each vehicle. You can't have different liability limits for vehicles on the same policy. Let's assume you have two vehicles, one of them small and light, and another large and heavy. The potential for causing costly liability damage is much bigger with the second vehicle. You can either set lower limits for both vehicles and risk being underinsured in case of a major accident, or higher limits and potentially overpay for the smaller vehicle.
- Potential impact on claims: If one of the vehicles listed on your policy is involved in an accident, all of your listed vehicles will most likely suffer a price increase no matter whether you or another driver listed on your policy was responsible.
- Not always cheaper: This disadvantage ties in with the previous one. Your premium can increase not only due to accidents caused by other drivers during the policy term, but also their previous activity which still lingers on their record. If the additional cars come with other, not-so-stellar drivers who have had some claims or violations in the past, you can expect to pay more for your insurance.
- One policy term: If you are more used to spreading out your payments over time for different policies, especially if you paid each individual policy in full, a multi-car policy can come as a shock for your wallet. With a multi-car policy you will be expected to pay one large sum at renewal time, which might prove too financially straining for some. If this is the case, you might want to consider monthly payments. Monthly payments are more bearable but will disqualify you from getting the pay-in-full discount, which can be considerable.
The Bottom Line
Insuring multiple vehicles on one policy offers savings, convenience and streamlined management. While there are pros and cons to consider, it's crucial to weigh them against your individual needs.
If you want to compare policies, Experian's auto insurance comparison tool lets you get multiple tailored insurance quotes all in one place from our insurance specialists.