What is multi-car insurance?

Multi-car insurance policies cover more than one vehicle with a single policy, which can help households pay significantly less for their coverage. Multi-car policies can even help you save upwards of 25%.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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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: Jan 21, 2021

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Here's what you know should...

  • How does multi-car insurance work? Can you insure two cars in your name? A multi-car policy covers more than one vehicle on a single policy
  • You don’t have to be biologically related to share a policy; some companies will allow roommates to take advantage of a multi-car policy
  • With a multi-car policy, households will pay significantly less for their combined coverage

Multi-car insurance coverage involves insuring more than one vehicle under the same driver’s policy. It is commonly recommended that you combine more than one car on your policy so that you can save money.

Save money by comparing online car insurance quotes with just your zip code now!

It simply makes sense to combine some of your insurance policies to get a discount. When you have more than one vehicle to insure, it is usually a no-brainer to combine them with the same provider.

Why Try a Multi-Car Insurance Policy?


Is it cheaper to put multiple cars on one policy? When you combine several vehicles into one policy, the entire household pays less for their combined coverage.

Besides being cheap car insurance, this policy is also convenient, as it allows the bill payer of the household to pay one combined rate instead of each driver paying for individual coverage.

The insurance provider will want you to list all of the insured vehicles as well as all of the insured drivers who will be operating these cars or trucks.

Annual fees tend to be costly, and so many drivers prefer easy monthly payments instead.

Unfortunately, many drivers never consider the advantages of multi-car discounts and end up paying much more for insurance premiums for their individually insured vehicles.

Not taking advantage of discounts is a big mistake when you are young and operating your first car.

Young drivers pay higher car insurance rates, to begin with. The independence you feel paying for your own insurance and owning your own vehicle can cost you a lot of money.

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Tips on Buying a New Policy


If you are sharing your house with family members or friends, then you might consider bringing them on the same policy or joining an established policy.

The more cars that are added onto a shared policy, the greater discount you receive. Instead of worrying about who gets what car, focus on the overall savings.

What’s that? Yes, technically speaking, anyone in the family can drive your insured car and be protected because most multi-car policies allow all insured drivers to drive any car listed on the policy.

Here’s a question: Do you need to be living under the same roof in order to enjoy the discount?

Ordinarily, if you are separated by location, then the answer is yes. You have no true relation to a person if you are living outside of his or her house.

However, if you insure all of your cars on the same policy, who is to say where the cars must be stored?

You could theoretically leave your cars at various addresses and still remain covered by a multi-car contract. The only stipulation is that all the cars must be yours.

There are other considerations too:

  • Renewal dates – If the insurance company combines all yearly or semi-yearly accounts and charges payment at the same time, you will be paying a huge combined bill all at once! You might want to consider monthly payments.
  • Flexibility – What if you decide that you want to trade one of your cars in? Will your policy allow for you to remove vehicles and replace them with another model? Will there be a major difference in price depending on the type of car?
  • Driver history – You must also consider whether or not all drivers on the policy will be eligible for a no-claims discount, not to mention other benefits. It wouldn’t be fair to reward one driver on the policy while ignoring all the other insureds.

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Ideal Multi Car Insurance Situations

One of the first scenarios that comes to mind is young drivers just starting out on the road. If a 20-year-old boy tries to find an insurance policy for his new car under his own name, one of two things will happen.

Either he will be denied coverage or he will have to pay very high premium rates. However, if he signs on with his parents then he can expect a considerable discount.

This option doesn’t only apply to direct family members. Some insurance companies allow roommates living in the same house to qualify for a multi-car discount.

In some cases, you might have to confirm that the original policyholder’s name and vehicle can be linked to all covered drivers, but this is an easy formality.

On the other hand, you should be aware that some insurance companies may discriminate against roommates or even family members who live at different addresses.

Some insurance companies may only offer coverage to married couples or life partners.

It is the choice of the insurance provider to create the policy.

One way or another, it’s easy to see the advantages of multi-car policies. With a little teamwork, everyone can save some money, including the insurance company of your choice.

Why not start finding multi car insurance quotes by entering your zip code right now?


  1. https://www.progressiveonline.com.au/multi-car-policies.aspx
  2. https://www.allstate.com/tools-and-resources/car-insurance/budget-car-insurance.aspx
  3. https://www.progressive.com/auto/car-insurance-discounts/
  4. https://carinsurance.about.com/od/WaystoSave/a/6-Largest-Car-Insurance-Discounts.htm
  5. https://www.nasdaq.com/article/how-long-can-kids-stay-on-parents-car-insurance-policy-cm144176

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