By Tim Maxwell
Edited by Samuel MountjoyHow Many Cars Can You Insure on One Policy?
By Tim MaxwellEdited by Samuel Mountjoy
Quick Answer
The number of cars you can insure on one policy varies by insurer, but the number is usually four to five. A multi-car insurance policy is typically easier to manage and may reduce costs by roughly 25%.
It's a common scenario in many households: Your family grows and so does your collection of vehicles. Having more drivers in the house can quickly fill your garage and have you wondering what your insurance company will allow.
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 multi-car policy. Let's explore how many cars you can insure on a multi-car insurance policy and whether you should do it.
How Many Cars Can You Have on Your Insurance Policy?
There's no universal limit on the number of vehicles you can insure on one policy. It varies from insurer to insurer, but most providers cap the number at four or five vehicles and some may allow for even more.
If one insurer can't meet your needs, it's worth checking with a few more providers. Even if you can't get them all insured on one policy, the insurer can usually set up a second policy and bundle it with the first one at a discount. This arrangement is effectively similar to a single multi-car policy.
Contact your insurer to find out the exact number of vehicles and drivers that are allowed on your policy. If you want more options, consider working with an independent licensed insurance agent who can give you limits and quotes from multiple insurance carriers.
How Multi-Car Insurance Works
A multi-car policy allows you to insure two or more vehicles under a single policy instead of separate ones. To qualify, your vehicles typically must all be garaged or parked at the same address. Ask your provider if they have other requirements or restrictions.
With this policy, your insurer prices each car individually and then applies their multi-car discount to the total premium. You can still customize your coverage for each of your cars. For example, you may have different deductibles and coverage limits from one car to the next. However, liability limits are typically the same across all of your vehicles.
All licensed drivers in your household should be listed on the policy. Your insurer will factor everyone's driving records when calculating your overall premium. Generally, your multi-car policy will have one renewal date and one bill. It's a convenient way to streamline your coverage and potentially save money.
Pros and Cons of Multi-Car Insurance
A multi-car insurance policy can simplify your coverage and save you money, but combining your vehicles on one policy comes with tradeoffs you should understand first.
Pros
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Pay less for coverage: Discounts vary among insurers, so it pays to shop around. For example, AAA states its multi-car insurance discount saves policyholders up to 27.3%, and Geico up to 25%.
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Streamlined and convenient: Managing one policy and renewal date for all your vehicles is easier than keeping track of separate policies. And if you have any issues with any of your vehicles, you'll call one insurer who knows all of your vehicles.
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Cheaper to add young drivers: If you have a teen or newly licensed driver in your household, adding them to your existing policy is usually cheaper than buying a separate policy.
Cons
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One liability limit for all vehicles: Most multi-car policies set liability coverage at the policy level, so the same limits apply to every car. You can still customize comprehensive, collision and deductibles for each vehicle, but you generally can't opt for different liability limits from one to the next.
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Potential impact on claims: If one driver on your policy has an accident, it can affect the premiums for all vehicles on the policy, not just theirs.
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One policy term: While one renewal date is convenient, all your vehicles renew at once, which can add up to a hefty bill.
Should You Get Multi-Car Insurance?
Whether you should get a multi-car policy depends on your household, budget and goals.
It may make sense if you have two or more vehicles at the same address, since that's the basic requirement to receive the multi-car discount. It's also a wise move if you're adding a teen or newly licensed driver, since adding them to an existing policy is usually cheaper than opening a new one in their name. Finally, you could benefit from a multi-car policy if you prefer the convenience of one insurance policy and renewal date for all of your vehicles instead of dealing with additional insurers and policies.
While multi-car policies are a strong option for most eligible policyholders, they're not for everyone. If someone in your household has accidents or traffic tickets on their record, their history can drive up the premium for every vehicle on the policy. In that case, a clean driver could end up paying more than they would on a separate policy.
You also might not want a multi-car policy if you want to avoid the strain of one large bill all at once. Getting separate policies could spread out your insurance costs across different renewal dates.
Learn more: How to Lower Your Car Insurance
How to Get Multi-Car Insurance
The process of getting multi-car insurance is very similar to getting coverage for a single vehicle. Follow these steps:
- Gather your information. Before you start, get your registration, license number and driver's licenses for everyone in your household who'll be on the policy. Having these vital details will help the quote and application process go more smoothly.
- Shop and compare rates and limits. Insurers set their rates differently, and not every provider offers the same multi-car discount. The Insurance Information Institute (III) recommends getting auto insurance quotes from at least three insurers. Use the same coverage limits and deductibles across each quote so you can make a fair comparison.
- Choose an insurer and apply. Once you've compared quotes, select the policy that provides the best balance of coverage, price and overall value. Then, fill out an application with your vehicle and driver details at this stage.
- List every driver. Any driver with regular access to your vehicles needs to be listed on the policy. Insurers may view a policy with multiple vehicles and only one listed driver as suspicious.
- Customize coverage for each vehicle. Once you're under one policy, you can still adjust your coverage levels and deductibles for each car based on its value and annual mileage.
- Confirm the discount. Confirm the multi-car insurance discount has been applied before you finalize your policy. While you're at it, ask your insurer whether you're receiving all the discounts you qualify for, including bundling home and auto or a good student discount for your teen.
Learn more: How to Get Car Insurance
Frequently Asked Questions
The Bottom Line
You can insure several cars on one multi-car insurance policy. Depending on your insurer, the limit may be up to five policies, or even more in some cases. Including them all in a multi-car insurance policy can give you a discounted rate along with the convenience of one bill and renewal date. Before purchasing, review the pros and cons above to make sure a multi-car policy is the right fit for your situation.
When you're ready to compare policies, Experian's auto insurance comparison tool gets you customized quotes from up to 30 top insurers and could save you up to $1,000 per year.
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About the author
Tim Maxwell
Tim Maxwell is a former television news journalist turned personal finance writer and credit card expert with over two decades of media experience. His work has been published in Bankrate, Fox Business, Washington Post, USA Today, The Balance, MarketWatch and others. He is also the founder of the personal finance website Incomist.
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