UPDATED: Mar 13, 2020
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Is there a limit to the number of cars that can be insured under the same policy? How many vehicles can you cover under one policy? Today, we’re answering all your questions about multi-car insurance policies – including how to save money on a multi-car insurance policy.
Multi-Car Insurance Is an Easy Way to Save Money
If you live in a household with multiple vehicles, then it’s in your best interest to insure your cars under one policy (unless, of course, your spouse has a DUI or some other major incident that would cause insurance rates to rise).
That’s why multi-vehicle insurance policies exist. Multi-car insurance policies are built for households with two or more passenger vehicles. These vehicles are covered under a single policy. You pay less than you would if you insured each car individually, and you save even more money by bundling vehicle insurance with your home insurance or life insurance.
The benefits of a multi-car insurance policy are obvious. However, there are certain requirements to qualify for a multi-car insurance policy.
Requirements for a Multi-Car Policy
There’s one obvious requirement for qualifying for a multi-car insurance policy: you need to insure two or more passenger vehicles on the same car insurance policy.
To do that, you’ll need all of the usual information – like the VIN and lienholder information (if applicable) for any vehicles, as well as the driver’s license numbers for all drivers. The information required for a multi-car policy is no different from a single-car policy, aside from the fact that you’re listing multiple vehicles.
Is There a Limit to the Number of Vehicles Under One Policy?
Insurance companies almost always have a limit to the number of cars you can cover under a single insurance policy.
Typically, insurers allow you to cover a maximum of four of five vehicles under a single policy.
Other Restrictions with Multi-Car Insurance Policies
There are certain other restrictions you may need to know about with multi-car insurance policies. Some companies offer a discount only if the insured cars are in the same household and insured by related parties. If you’re living with unrelated roommates, for example, then you may not qualify for a multi-car insurance policy.
Other insurers, however, only require everyone to live at the same address, and they don’t care whether or not you’re related.
Another important thing to note is that you could qualify for a multi-car insurance discount in the middle of your term. Some people instinctively wait for the end of their term to add a new vehicle, when they could be taking advantage of the discount immediately.
Does the Coverage for Each Vehicle Need to Be Identical?
This is where things get a little tricky. Typically, insurance companies require all vehicles under a multi-vehicle policy to have the same amount of liability insurance and uninsured motorist coverage. This is done to ensure there’s no confusion regarding how much liability coverage each vehicle has.
In other words, if you have a liability limit of 100/300/50 on your first vehicle, then you need to have those same limits on your second vehicle.
This isn’t just your insurance company being nitpicky: state laws often require liability limits to be the same for all vehicles under a single policy.
Policyholders, however, are free to adjust collision coverage and comprehensive coverage between vehicles. You might want full coverage on your brand new SUV, for example, while getting rid of collision and comprehensive coverage on your 10+ year old vehicle.
You can also add, remove, or adjust add-ons however you like – including things like rental car reimbursement or custom car coverage. You’re totally free to add this to certain vehicles under your policy but not others.
There’s one important thing to remember with all this: the insurance company insures your vehicle, not the driver. If your primary vehicle has full coverage, but your secondary vehicle has no collision or comprehensive coverage, then that doesn’t change when someone else drives it.
You Can’t Insure Cars and Motorcycles Under the Same Policy
The only other restriction you need to know about is that motorcycles and cars cannot be covered under the same multi-car insurance policy. Motorcycles require a motorcycle policy – not an auto policy. However, you may still be eligible for a discount by ordering through the same insurer for both policies.
Ultimately, multi-car insurance policies are an easy way for drivers to save money on their policies. Typically, you can expect to save 10 to 25% off your liability, collision, and comprehensive coverage.
Multi-car policies generally have a limit of 4 or 5 vehicles. Some insurance companies require all drivers to be related, while others allow anyone living at the same address to qualify for a multi-car insurance policy.