Did you know that in the United States, there are currently 276.1 million cars on the road?

If you’re like many people in the United States that have more than one car, it doesn’t make sense to purchase an insurance policy for each car that you own. However, not many people understand what multicar insurance is and the unique benefits that it has to offer. That’s why today, we’ve created a complete guide to help you better understand what multicar insurance is.

The good news is, is if there are multiple cars at your place of residency and that are all insured by the same company, you can quality for a multicar insurance policy!

Are you interested in learning how you can benefit from multicar insurance? Keep reading to learn more!

What Is Multicar Insurance?

Multicar insurance is a special type of insurance that allows you to cover several vehicles that are all located at the same address under one insurance policy. This type of car insurance policy provides each vehicle with coverage and will allow you to select how much coverage you want to put on each car. You don’t have to pay the same amount for each vehicle.

This type of car insurance will allow you to manage each vehicle individually. You also will have the option do cover each car separately, or be able to pay for everything under one policy.

Multicar Insurance Discounts

The vehicles that are on the multicar insurance policy need to have both property damage and personal liability coverage for the cars to be eligible to receive the discount that’s commonly associated with a multicar insurance policy.

Once you add a second car to your insurance policy, you will receive a discount. However, as you continue to add more cars onto your insurance policy, your discount rate will remain the same.

In other words, the more cars that you add onto your vehicle doesn’t mean that you’ll receive a larger discount. Your discount rate will remain the same after you add your second vehicle to qualify for the multicar insurance policy.

You should also be aware that if the second car that you’re adding onto your policy is in storage, this second car doesn’t qualify for the multicar insurance policy. There are some insurance companies that’ll offer you the option to bundle your homeowners insurance along with your multicar insurance policy.

How Does Multicar Insurance Work?

For you to take advantage of multicar insurance, you don’t have to worry about canceling any of your existing policies. The majority of insurance companies on the market will allow you to add a car to the insurance policy when the policy is up for renewal.

If you have multiple cars that are located at the same address, in most situations, you can choose different levels and different excess for all the cars that are on the multicar insurance policy.

A multicar insurance policy is simply 12 months long and will start on the day that the insurance for the last car is up for renewal. Brittany cars that have expired insurance as you’re waiting for the last car’s other policy to expire, there will be a short term insurance use to cover them.

The vehicles that are on a multicar insurance policy have to be for private use only. B drivers that are covered on the multicar insurance policy are only allowed to drive the cars if they are registered as the named driver for that specific vehicle.

As you’re filling out the insurance policy, you’ll be asked to provide information about the cars that’ll be covered under the insurance policy and people who drive them. You can set collision coverage and comprehensive coverage to be unique for each vehicle on your policy. This means that you’ll be able to offer full protection on specific cars on your policy, while you won’t be charged extra for cars that you aren’t interested in covering extra on.

Why You Should Consider Using Multicar Insurance

Depending on the insurance company that you choose, you can cover up to six vehicles on multicar insurance. This also allows you the option to ensure up to 12 drivers, which is a great idea if you have a large household.

Choosing to purchase a multicar insurance plan will help to relieve you of the responsibilities that come with having to manage multiple policies at once. Multicar insurance gives you the ability to manage all of your cars together and renew the insurance policy for each car on one date.

You may also benefit from a multicar discount with this type of insurance, which can also help to save you money in comparison to managing several insurance policies at once.

Multicar insurance policies are a great option for households that are looking to save money. With the discounted rates you’ll receive, you can save a lot of money on your insurance policy by bundling all of your vehicles together onto one policy.

Plus, if you have a teen that’s getting ready to start driving, a multicar insurance policy will help to reduce the high cost that comes with adding a young driver onto your insurance policy.

What Are the Requirements for Multicar Insurance?

For you to be able to qualify for multicar insurance, you need to have two or more passenger vehicles on the same car insurance policy.

You will also need to have the lienholder information if that is applicable to your situation. As you’re signing up for the multicar insurance policy, you need to have the VIN and the driver’s license number for all of the drivers that will be on that this insurance policy.

Depending on the insurance company that you’ll be signing up with, there may be a limit on how many vehicles but you’ll be able to have on your multicar insurance policy.

Are There Any Benefits of Using a Multicar Insurance Policy?

The most common benefit they will run into with a multicar insurance policy will be at the savings. Depending on the company and the policy that you choose, you can receive up to a 25% savings on your policy by adding another car receive discount.

Another added benefit for choosing to use a multicar insurance policy will be that all of your paperwork and policy information will be located in one place. This means that you only have to worry about paying one bill, remembering when one payment is, and remembering to renew once.

Who Should Get Multicar Insurance?

If you were somebody that has multiple cars At your address, it may make sense for you to get multicar insurance. Some of the most common situations where people would benefit from multicar insurance are:

  • Couples that are living together: If you’re living with your partner, whether you’re married or not, you both can benefit from a multicar insurance policy thanks to the money you’ll save by combining your cars on one policy.
  • Families: If your spouse drives a different car than you or if your teenager owns a vehicle, your family can benefit from multicar insurance!
  • You own more than one car: If you’re single and you own several cars, even you can benefit from a multicar insurance policy! As long as one of the vehicles that you own doesn’t have to be covered until commercial insurance, you can reap the benefits of multicar insurance.

However, we wouldn’t recommend purchasing a multicar insurance policy if you live with a roommate and you both have separate finances. If your roommate has a car that’s a lot more expensive than the vehicle that you own, it wouldn’t be a great idea for the two of you to share an insurance policy together.

Understanding How You Can Benefit From a Multicar Insurance Policy

If you’re still not totally sure about how you and your household can benefit from a multicar insurance policy, we’re here to help you. We understand that choosing a new insurance policy can be a bumpy ride, which is why we’re here to help you navigate through it and decide which insurance policy is the best plan for you.

If you’re ever unsure about what’s covered on your multicar insurance policy, be sure to ask your insurance agent any questions that you may have! We would highly recommend keeping all of your vehicles under the same carrier for the multicar insurance policy.

Click here to learn how we can match you with some of the best potential multicar insurance policy matches for you.

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