Car Insurance Piggybacking: Explained Simply
Piggybacking car insurance means a person can lower their insurance costs by carrying several policies from the same company. Piggybacking insurance can also be referred to as "bundling" policies. The most common example of piggybacking car insurance is when teen drivers are added to their parents' policy in order to reduce car insurance rates. See if you can save money by piggybacking car insurance with our free comparison tool below.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
UPDATED: Aug 26, 2024
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Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Aug 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Piggybacking is a situation in which a person avoids paying higher costs by carrying several policies all from the same company
- The most important insurance policies today are worker’s compensation insurance, homeowners insurance, standard coverage insurance, extended liability insurance, life and disability insurance, and health insurance
- A high-risk category driver (such as a teen) may be able to get a substantial discount on car insurance by joining their parents’ policy
In the car insurance industry, piggybacking is a situation in which a person avoids paying higher costs by carrying several policies all from the same company. Also referred to as multi-line policies, this is a method to reduce the cost of your premiums.
This article discusses the three main types of insurance that you can most commonly piggyback on your auto insurance policy.
Read on to learn all about auto insurance piggybacking and then be sure to enter your zip code above for a FREE car insurance comparison!
How Does Piggybacking Insurance Work?
An insurance company knows it has a lot to lose if it doesn’t sell you multiple insurance policies. They want your business and are usually willing to offer a discount on multiple policies.
The most significant insurance policies today are worker’s compensation insurance, homeowners insurance, standard coverage insurance, extended liability insurance, life and disability insurance, and health insurance.
However, most traditional insurance companies will not offer all of these policies. What you may find is that your car insurance company is willing to provide a policy for life insurance and homeowners insurance for a consolidated low price.
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What are other types of car insurance discounts?
The majority of car insurance providers offer a lot of car insurance discounts to their policyholders. These discounts can be for the certain features the policyholder’s car has or for the driver’s driving habits.
You earn discounts for having certain safety features like air bags, anti-lock brakes, a car alarm, and daytime running lights.
Airbag and car alarm discounts can earn a discount of as much as 25 percent. If the car has anti-lock brakes, the policyholder could get a discount for around five percent and daytime running lights can earn a three percent discount. (For more information, read our “Daytime Running Lights Car Insurance Discounts“).
The way the policyholder drives can also earn them excellent discounts. Most insurance providers offer a good driver discount to people that have gone at least five years with no accidents.
This discount can save the policyholder around 25 percent. The driver could also save up to 15 percent if they wear their seatbelt. A policyholder that always wears a seatbelt is less likely to be seriously injured in an accident, so they are considered less of a risk to insure.
Car insurance providers also offer car insurance discounts to policyholders that are members of certain organizations. Most offer a discount to members of the military.
There are also discounts available for federal employees and members of certain organizations.
A policyholder’s loyalty to their insurance provider will also earn them special discounts. If the policyholder has been with the company for at few years, they can get a loyalty discount. There are also discounts for people who have more than one car.
What You Should Know About New Insurance Policies
How can you go about finding this sort of policy if you don’t have access to any special membership options? Try researching national and local insurance companies that offer multi-discount policies.
Obviously, it is a smart idea to start with the insurance company that you already pay on a regular basis. You could look up their official site or ask your agent if the company also offers life or homeowners insurance along with their auto policy.
The next step is to find out how much of a discount they offer. Of course, no insurance company is going to give away such important coverage.
The typical discount for piggybacking is about a five percent discount for a new policy.
Read the contract carefully before agreeing to any new changes, even if the agent explains the deal thoroughly. Sometimes the fine print can differ from what is orally agreed upon.
Another aspect of piggybacking to discuss is multi-driver discounts. A high-risk category driver (such as a teen) may be able to get a substantial discount on car insurance by joining his parents’ policy.
Buying Policies Online
You also have to consider additional factors when it comes to life insurance and health insurance. For example, losing weight or stopping smoking and excessive drinking can reduce your premium rates.
Though it may be hard to save on car insurance when you are young, signing up for a life insurance policy when you are young cansave you a lot of money.
If you need help sorting through various commercial insurance companies, try using our FREE online tool. It’s a great way to compare multiple insurance policies from a variety of popular insurers. Enter your zip code below to get started!
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Case Studies: Exploring the Benefits of Piggybacking Car Insurance
Case Study 1: The Smith Family
The Smith family consists of parents, John and Sarah, and their teenage daughter, Emily. When Emily started driving, they faced the challenge of higher insurance rates for teen drivers. Seeking a solution, they contacted their car insurance provider to explore piggybacking options.
By adding Emily to their existing auto insurance policy, the Smiths were able to benefit from a multi-driver discount and reduce their overall insurance costs.
Case Study 2: Homeowners Insurance Bundle
Lisa recently purchased a new house and needed homeowners insurance coverage. Coincidentally, she also needed to renew her auto insurance policy. Rather than obtaining separate policies from different insurance companies, Lisa reached out to her current car insurance provider to inquire about homeowners insurance.
She discovered that by bundling her homeowners and auto insurance policies with the same company, she could secure a discounted rate on both policies.
Case Study 3: Life Insurance Combo
Mark was interested in purchasing a life insurance policy to protect his family’s financial future. During his research, he learned that some car insurance companies offer life insurance coverage as well.
Mark approached his car insurance provider and found that he could obtain a life insurance policy at a reduced premium rate by piggybacking it onto his existing auto insurance policy.
Frequently Asked Questions
What is piggybacking car insurance?
Piggybacking car insurance refers to carrying multiple insurance policies from the same company to lower insurance costs. It is also known as “bundling” policies. A common example is adding teen drivers to their parents’ policy to reduce car insurance rates.
How does piggybacking insurance work?
Insurance companies often offer discounts on multiple policies to attract customers. By consolidating different insurance policies with the same company, such as life insurance or homeowners insurance, you can reduce the overall cost of premiums.
What are the types of car insurance discounts available?
Car insurance providers offer various discounts based on factors like safety features in the car, driving habits, membership in certain organizations, loyalty to the insurance provider, and having multiple cars insured. Discounts can range from safety feature discounts to good driver discounts and more.
How can I find insurance policies that allow piggybacking?
Start by researching national and local insurance companies that offer multi-discount policies. Check with your current auto insurance company to see if they provide other types of coverage like life insurance or homeowners insurance. Compare the discounts offered and carefully read the policy terms before making any changes.
Can piggybacking car insurance help me save money?
Piggybacking car insurance can potentially save you money by taking advantage of discounts offered by insurance companies for carrying multiple policies. However, it’s important to compare quotes from different companies to ensure you’re getting the best deal.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.