Second Car Insurance

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Second Car Insurance

Multi-car insurance, or insuring two or more cars on a single car insurance policy, has plenty of benefits. Of course, the biggest benefit is the amount of money it can save you on your monthly car insurance premium. In the United States, many households have two or more vehicles or are planning to buy an additional car in the near future. If you need second car insurance, check out these helpful tips, which will not only inform you but also save you some serious money.

How Many Vehicles Can be on a Multi-Car Insurance Policy?

The exact number of vehicles you can insure on a policy varies from one insurance company to another. However, most cap the number at four or five for non-fleet owners. Multi-car insurance policies also allow you to insure more than one driver. To compare rates online, apply for a free quote.

How do You Qualify?

To secure second car insurance, you simply need to insure two or more vehicles on a single car insurance policy. This automatically qualifies you for a discount that could save you 10% or more. If you choose to add a vehicle in the middle of your policy, you will also be eligible for a discount. On the other hand, if you remove a car in the middle of your policy, you will no longer receive a discount.

Starting a multi-vehicle policy is easy and requires the same information you would need to start a policy for just one car. You’ll need the vehicle’s VIN, as well as any applicable lienholder information and the driver’s license number of all potential drivers.

Some companies may require that all of the insured vehicles be kept within the same household and be insured by related parties. Others only require that you reside at the same address and do not consider whether or not you are related to the other drivers named on the policy.

Multi-Car Policy Requirements

As mentioned above, requirements will differ from one insurance company to another. However, common requirements that are seen with almost all insurance companies include:

  • All vehicles on the policy must be parked or stored at the same address
  • All vehicles must have liability coverage, at a minimum (Cars that only have storage coverage will not qualify for a multi-vehicle discount.)
  • All automobiles insured must be classified as standard passenger vehicles (Commercial vehicles may or may not be included in the bundle.)
  • In some cases, the vehicles may be required to be owned by a single driver. In other cases, different owners may be allowed, but they must live in the same household.
  • Some insurance companies may allow you to include a motorcycle when bundling a car insurance policy. Other companies may not allow this. Instead, you will need to take out a separate motorcycle policy. However, you may be eligible for a discount because you have more than one policy with that particular insurance company. 


The Benefits of a Multi-Vehicle Policy

Obviously, one of the top benefits with this type of policy is the discount that comes along with it.  However, there is another big benefit that you may not have thought of. All of the vehicles will have the same renewal date and payment date, eliminating the need to keep track of multiple renewals and payment dates. This should help you always remember to make your payment and prevent your policy from potentially lapsing without your knowledge.

How Much of a Discount do you Get for a Multi-Car Policy?

Typically, you can expect to see a 10 to 25 percent decrease in the cost of your liability, comprehensive, and collision coverage. However, this may vary, depending on the type of vehicle(s) being covered and who the listed drivers are.

Although each automobile will receive the discount, the discount cannot be compounded with each car you add to the policy. In simple terms, if your discount is 15 percent, it will remain 15 percent regardless of the number of cars covered on the policy.

When a Multi-Auto Insurance Plan Isn’t the Cheapest Option

In some cases, a multi-car policy may not be your most affordable option when you are looking to insure a second car. This usually occurs in cases where you are trying to bundle multiple drivers on the same policy. In certain situations, for example, if one driver has been found to be at-fault for multiple collisions in the past decade. In this case, your premium will be higher than it would be on a policy for yourself. To lower your policy premium, your insurance company may ask you to sign a statement guaranteeing that the other driver will not drive your car under any circumstances. If you do not agree to these conditions, you will likely have a higher premium as long as that person lives in your home.

Adding Family Members to Your Car Insurance Policy

In most cases, if someone else is listed as the owner of the car, that person will need to obtain his or her own policy and coverage for their vehicle. In this situation, some insurers may still give you a discount.  For example, if you have an adult child living in your home and he chooses to insure his vehicle with the same insurance company that insures your vehicles. Some insurers will compensate you both by applying a multi-car discount to both policies. Unfortunately, this is not the case with all insurance companies, so you will want to discuss this with your company to learn if you are or are not eligible for the discount.

Does Coverage Have to be the Same on Every Vehicle?

While you are required to have minimum liability coverage on every vehicle, you may not be required to have collision and comprehensive coverage. This will depend on the whether or not the automobile is paid off.

Typically, you will be required to carry the same amount of liability coverage on every vehicle. For example, if you have liability limits of 100/250/50 on the first car insured, any additional vehicles must have identical limits. This eliminates any confusion as to how much coverage each vehicle has.

You also have the option of choosing whether or not to include any add-on coverage on each vehicle. Examples include custom car and equipment coverage, as well as rental reimbursement and roadside assistance.

Keep in mind that the person driving is not insured. The car that is being driven is insured. This means that if one driver has full coverage on his or her car, but opts to drive a different car that only carries liability insurance, they will only have liability coverage if they have an accident in the second vehicle.

If you need second car insurance, be sure to take the time and compare the rates of multiple insurance companies before making a decision.  The company you are currently covered by may no longer offer the best rate. Enter your zip code and compare direct rates in under five minutes.