What is a multi-car insurance discount?

Multi-car insurance often offers many discounts, combining policies can save you hundreds in premiums.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Feb 16, 2021

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Here's what you should know...

  • A multi-car policy combines the vehicles of couples or a family into a single policy
  • Combining policies can lead to a multi-car discount, which can save you hundreds a month in premiums
  • Parents with teens may benefit from having their child insured on just one parent’s policy due to teens’ high-risk driver status

Many people today own more than one vehicle.

  • A married couple may own a vehicle for each driver.
  • A commuter may own one high fuel efficiency vehicle for the commute and another car to drive around in on the weekends.
  • Another driver may have paid off the loan on one car and didn’t want to trade it in when a new car was purchased.

There are so many scenarios why you may own more than one car today, and what this means for you is that you may have an increased car expense in your budget.

Is it cheaper to insure multiple cars? You may have multiple car payments, multiple fuel tanks to fill up and multiple policies to buy for car insurance. However, you can take advantage of the multi-car insurance discount to keep the cost of insurance down.

Enter your ZIP code in our FREE comparison tool above and we will help you find the perfect car insurance policy for your needs.

What is a multiple vehicle discount?

All vehicles need to be insured, even if they largely sit in your garage and are rarely used. In most states, vehicles that are registered within that state must comply with state car insurance laws.

Most of these laws require a driver to purchase a certain level of car insurance. The more vehicles you own, the higher this expense could be, as the insurance is typically tied to the car rather than the driver.

The multi-car discount is designed to make it more affordable for drivers to insure multiple vehicles.

In most cases, it allows drivers to waive the administrative fees associated with a car insurance policy if a second vehicle is insured on the policy.

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Discounts Can Vary

For drivers who want to take advantage of the savings offered by a multi-car insurance discount, shopping around and comparing rates online can pay off. Insurance rates can vary significantly between companies.

How much is a multi-policy discount? This rate difference is compounded by variation in the discount from company to company.

Some companies are simply more affordable to insure your car with than others, and shopping around allows you to locate savings.

Understanding How a Multiple Vehicles Discount Saves You Money

Before you spend time and energy trying to consolidate your coverage for all of your vehicles, you may benefit by learning how this could save you money overall. Insurance companies issue your rates based on factors like how much coverage you purchase, the safety rating of your car, and more. They also look at their overall cost to service the policy.

When you combine multiple vehicles or multiple drivers under a single policy, the insurer’s administrative expenses associated with your coverage decrease. Many providers pass these savings on to policyholders in the form of a multiple vehicles discount.

Similar discounts are provided for insuring multiple drivers or even for bundling your auto coverage with your home insurance, renter’s insurance, or other types of coverage.

Exploring Other Factors That Influence Premium Amounts

The coverage terms and limits that you select for each vehicle will determine how affordable your auto insurance premium is with this discount in place, but other factors related to each driver or vehicle on your policy are also taken into account.

By learning more about other factors that car insurance companies analyze when you request a quote for coverage on multiple vehicles, you may be able to adjust some factors to save money now or in the future. These factors include:

  • Your driving history
  • Your claims history
  • Details about each vehicle being insured
  • Your age and gender
  • Your credit rating
  • Statistics for your home’s zip code
  • How far you normally drive

Comparing Rates to Save Money on Coverage for All of Your Vehicles

The financial value of a multiple vehicles discount varies by provider, and the same holds true for the rates for each vehicle that you need to insure.

You can easily compare separate quotes for each vehicle that you want to insure as well as bundled coverage to ensure that combining the vehicles into a single insurance plan is the most cost effective option available.

Because insurance companies have different rates and discounts, you need to shop around with multiple insurance companies online to find the best deal possible when looking for coverage for all of your vehicles. You can easily streamline the process when you compare rates online from just a few of the top providers.

You can eliminate many auto insurance providers from the running by researching their customer satisfaction level and their overall financial strength online.

Learning About More Ways to Save Money

The multiple driving discount is just one of many ways to save on car insurance. When you understand these techniques, you can more easily set up a policy that is affordable for you. Some money-saving ideas for auto insurance include:

  • Paying your premium amount in full
  • Setting up automated payments if you pay your premium with installment payments
  • Increasing your deductible
  • Qualifying for more car insurance discounts

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How Drivers Affect Rates

In many cases, insuring multiple vehicles on a policy also means that you are insuring multiple drivers on a policy. In an ideal world, the second driver would have an excellent driving record.

However, in some cases, that driver has gotten a traffic citation or two in recent years, or he or she has been involved in a car accident recently. In other cases, the two primary drivers are great drivers, but a third teen or young driver may be insured on a policy.

In cases such as these, it may be more affordable for the first driver to have a separate insurance policy.

Teen drivers typically need to be insured on their parents’ policy but insuring that teen with just one of the parents on the policy and allowing the first parent to stand alone on his or her own policy may yield savings.

Each situation is unique, so shopping around and exploring the options is necessary.

The Vehicles Being Insured

When you combine vehicles onto one policy, you must accept the rates being offered for both vehicles. When you have a separate policy on each vehicle, you have the option to find the lowest rates for a specific vehicle independently.

In some cases, one company may offer lower rates for one car and another company may offer lower rates for the second vehicle.

Because of this possibility, it is best to shop around extensively and find the company that offers the lowest combined rates for both vehicles.

Typically, the savings from the multi-car discount makes it cost-effective to combine vehicles on one policy, although this is not always the case.

Other Discounts That You May Benefit From

The multi-car discount is one that most car insurance companies offer to policy holders. There may be variations in the amount of the discount, and qualifications for the discount can also vary.

In addition to this common discount, other discounts are available through many insurers that will allow you to save an even greater amount on your premium:

There are numerous discounts offered by most insurance companies, and the aforementioned discounts are just some of the many different discounts you may find.

It is wise to talk to an insurance agent about your unique situation when comparing rates to determine what type of savings you may qualify for with the company.

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Optional Cost-Saving Strategies

Discounts like the multi car insurance discount do offer savings, but there are other ways you can save on the cost of car insurance. Consider these cost-saving strategies:

Analyze Your Coverage

 Many people today are under-insured, but some may be paying for more coverage than they need. For example, a policy for a low-value vehicle may not benefit from collision coverage unless required by a car lender.

A family with two vehicles may not need rental car coverage. Removing unnecessary coverage can help you to save money on your car insurance cost.

Increase the Deductible

The deductible amount you choose directly affects your premium cost. For a lower premium, choose a higher deductible amount. Consider the pros and cons before raising your deductible.

Stay Safe on the Road

Safe drivers pay lower insurance rates, and they qualify for safe driving discounts for additional savings.

It pays to be a safe driver, so review your current driving behavior and make changes where necessary.

It can be expensive to own two or more cars, but the multi-car discount provides you with a way to cut down on the cost of car insurance for your vehicles.

Finding Affordable Vehicles to Insure

Insuring multiple vehicles under the same policy can be expensive, and the vehicles themselves play a key role in the cost of insurance. You may be thinking about trading in one or more vehicles soon, and you may be able to shop around to find a vehicle that qualifies for better rates.

When you are insuring multiple vehicles under the same policy, the cost of your premium may be heavily influenced by the specific features of your vehicles. Some safer vehicles are much more affordable to insure, and you can easily focus on finding more affordable vehicles to insure when you trade in your vehicles in the future.

Some of the factors that car insurance companies look at when quoting rates include:

  • vehicle’s replacement value
  • Average repair costs for a vehicle
  • The safety feature and security equipment in the vehicle
  • The type of engine

Getting Quotes for Car Insurance the Easy Way

If you are thinking about wrapping two or more vehicles together under one auto insurance policy, it makes sense to compare quotes for insuring the vehicles separately and together from multiple providers. This can take time, but you can more quickly and easily get quotes from reputable auto insurance providers when you use the internet.

What is the best multi-car discount insurance? Take time to shop around and compare insurance costs between car insurance companies today to determine if you can save money by insuring your vehicles together on one policy.

Use our FREE car insurance comparison tool and receive car insurance from multiple local companies today!


  1. https://www.allstate.com/tools-and-resources/car-insurance/budget-car-insurance.aspx
  2. https://carinsurance.about.com/od/CarInsurance/a/Pros-And-Cons-Of-Online-Car-Insurance.htm
  3. https://carinsurance.about.com/od/WaystoSave/a/6-Largest-Car-Insurance-Discounts.htm
  4. https://www.kbb.com/car-advice/articles/how-much-and-what-kind-of-car-insurance-you-need/
  5. https://voices.yahoo.com/the-pros-cons-raising-car-insurance-deductibles-2922520.html?cat=27
  6. https://www.kbb.com/car-advice/articles/how-to-choose-the-right-auto-insurance-company/

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