One way to save money on car insurance premiums, if you have more than one car, is to put them under the same policy. Known as a multiple vehicle policy, you can not only save money, but you can streamline your insurance payments by putting all of your vehicles on one policy.
Is There a Limit on How Many Cars You Can Have on Your Policy?
While this number varies by insurance company, yes, there is a limit. Some carriers will allow you to insure only three vehicles under a single insurance policy. But others allow as many as four or five cars on one policy.
Once you exceed a particular insurance company’s vehicle limit, you will have to buy an additional policy for any other remaining vehicles.
You will get to take advantage of a multi-car discount if you list several vehicles on one policy. This can be as much as twenty percent over insuring each vehicle separately. Of course, the actual savings depend on your carrier, the type of cars you are insuring, and the type of coverage you need, but there is almost always savings to be had with a multiple vehicle policy. Check your policy to be sure your getting this discount.
Avoid the Crime of Fronting
Be very careful when it comes to the reason for insuring multiple cars on one policy. One pitfall that many people fall into concerns teenage drivers. Often when a child gets their first car, the parents will list the car on their own policy and the teenager as a secondary driver. The problem comes when the reality is that the car is solely driven by the teenager and not just occasionally.
If there is an accident and the insurance company discovers that the car is driven regularly by the teenager, you may be charged with the crime of fronting, which is a form of insurance fraud. The company may deny all of your claims and there may be legal consequences also.
Other Restrictions with Multi-Car Insurance Policies
Usually, insurance companies will only accept multi-vehicle policies when the insured are related family members. So, if you and your roommates want to put all of your cars under one policy to save money, you will likely be denied, even though you live at the same address. Some insurance companies do allow this though, so it’s worth shopping around.
InsuranceWins lets you shop around for multi-car policies by simply filling out an online form. With a fast and easy way to compare multiple carriers, you’ll be able to find the right company to insure your multiple car household.