Car Insurance for Multiple Drivers: How It Works

Whether you’re a parent who wants to insure your teen driver, a spouse who regularly swaps cars with your partner, or you share a car with roommates, it may make sense to insure your multiple drivers under one auto policy.

Multi-driver policies are usually more expensive than single-driver policies, but it’s often much cheaper to have multiple drivers under one policy than it is to have a separate policy for each driver. You may also be able to increase your savings by comparing car insurance quotes.

How to insure multiple drivers

You usually have two options for insuring more than one driver on the same car: Add multiple drivers to the same insurance policy or set up individual policies for each driver.

Both options accomplish the same goal, but they have some crucial differences to explore.

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Multiple-driver insurance policy

A car insurance policy for multiple drivers is a single policy that covers more than one driver for the same car. It’s a solid option for spouses, roommates, and parents with children who drive. While this is usually the cheapest way to insure multiple drivers, it’s often more expensive than a single-driver policy.

The price you pay will depend on each covered person’s driving record, age, and other factors. However, multiple drivers on one policy usually equates to an increased risk for the insurance company and, therefore, a higher cost for you, since additional people intend to drive the car.

Multiple single-driver insurance policies

You can also opt to cover everyone’s needs with multiple individual auto insurance policies. Then, each person has a separate insurance policy in their name, unconnected to the other drivers.

It usually costs more to maintain separate insurance policies. This is because adding new drivers to an existing policy is often cheaper for the insurer than creating new coverage options. Insurance companies also often include discounts for multiple-driver policies to encourage additional business.

How does a multi-driver car insurance policy work?

Car insurance for multiple drivers functions the same as a single-driver policy. You can add a driver to your existing auto policy, or the policyholder can add you to a policy as another driver. The drivers on the policy are responsible for paying the insurance premium when it’s due, usually every six or 12 months.

The cost of a multi-driver policy depends on each driver’s driving record, age, and other factors. The insurance company accesses the motor vehicle record for each driver and uses the information to determine pricing.

Once the policy is active, each person’s actions affect the other drivers. If one driver gets a citation or violation, the policy premium will likely increase for everyone.

But even though the other drivers might have to share the financial burden, they’re not responsible for the citation. The violation will only appear on the record of the driver who received it. The same is true for high-risk offenses, like a DUI. However, the insurance company might refuse to insure the convicted driver. This could affect the other policyholders by forcing them to look for a new policy if the existing policy was in the name of the driver who was denied insurance.

Multi-driver insurance policy pros and cons

Even though car insurance for multiple drivers can be a great option, it does have potential drawbacks. Here are some advantages and disadvantages you might want to consider with a multi-driver insurance policy.

Pros

• It’s cheaper than the cost of multiple single-driver policies. When you need to insure more than one driver for the same car, multi-driver policies are usually the most economical option.

• Other drivers don’t affect your driving record. It might seem risky to enter into a car insurance policy with other drivers. However, you can feel at ease knowing that the other drivers’ citations, accidents, or violations won’t appear on your driving record.

• It simplifies the insurance process. Managing a single policy for multiple drivers is more straightforward. You only have one bill to pay monthly and one insurance company to communicate with.

Cons

• One driver’s actions can affect the costs for everyone. Even though another driver’s actions won’t appear on your driving record, they can still affect you, thanks to increased costs for a shared policy.

• The policy is usually in one driver’s name. A multi-driver policy provides coverage for multiple drivers, but one driver usually adds the others to an existing policy. As a result, that person might inadvertently feel more responsible for paying the bills and managing the account.

• You must live at the same address. To add someone to your insurance policy, you must both have the same permanent address. Insurance companies might make an exception for children away at college, but that’s usually the only exception offered.

Who can you add to a multi-driver insurance policy?

You must reside at the same permanent address to add someone to your insurance policy. Children away at college are usually considered an exception. But you can add insurance for the drivers on more than one car.

For example, suppose you and your spouse own a vehicle. In that case, you can have a multi-driver policy that includes coverage for both vehicles. Multi-driver insurance policies can usually include up to four drivers.

These are typical examples of people who might share the same address and decide to utilize a multi-driver policy:

• Spouse

• Teen children

• Roommates

• Significant other

• Parents

• Other family members

How to add a driver to your insurance policy

To add a driver to your auto insurance policy, follow these steps:

1. Contact your insurance company. Once you’re ready to add a driver to your policy, contact your insurer to make the request.

2. Provide the necessary information. To add a new driver to an existing policy, most insurance companies need to access the person’s driver’s license, address and ZIP code, driving record, claims history, credit score, and date of birth.

3. Review the updated policy. After adding the new driver to your policy, you’ll receive a new insurance policy and premium. Review both and ensure it’s a good fit.

4. Compare car insurance quotes. After reviewing the updated policy, compare offers from other insurers to make sure you’re getting the best deal on coverage.

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How much does a multiple-driver insurance policy cost?

The cost of car insurance for multiple drivers depends on various factors, including the profile and driving record of the drivers you want to insure. Your location and characteristics of the vehicle also affect the cost.

The national average cost of a full-coverage policy for multiple drivers is $314 per month, including liability coverage. The national average for a liability-only policy for multiple drivers is $199.

Multi-driver insurance policy quotes by state

Car insurance rates vary by state, and the same is true for multi-driver policies. Florida is the most expensive state for multi-driver full-coverage insurance policies, while New Hampshire is the cheapest.

Best companies for multiple-driver insurance

Comparing quotes as you shop for the best multi-driver insurance policies is essential. Various factors determine the best car insurance company for you, including the driver profile and habits of the people on your policy, vehicle type, and location.

The following companies offer solid multi-driver insurance coverage with competitive prices:

Methodology

Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates. With this data, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

How to save money on car insurance for multiple drivers

If you’re going from a single-driver policy to a multi-driver policy, you’ll likely find that your costs increase. But you still have simple ways to save money and reduce your premium.

Seek discounts

Most car insurance companies offer extensive discount options, including some you might not expect. You might be able to secure a discount for paying your premium in full or if your parents have insurance through the same company. Plus, good driver, student, and multi-driver discounts might be great options as well.

Choose a higher deductible

Raising your deductible is one of the quickest ways to save money on your premium. In general, a higher deductible equates to a lower premium. It’s a great strategy to lower your monthly payment. Still, it’s essential to ensure you can afford the deductible in case of a claim.

Practice safe driving

Many car insurance companies offer discounts to drivers who go a few years without a claim or violation. Some insurers also encourage customers to download an app that tracks their driving. The app reports your driving habits back to the insurance company. If you drive safely for a certain amount of time, based on the app’s data, you can earn an additional discount.

Maintain good credit

In most states, car insurance companies use drivers’ credit scores as a factor when determining rates. Data shows that drivers with higher scores are less likely to get into accidents, so insurers consider scores a factor.

Raising your credit score by monitoring your credit report, making credit card and loan payments on time, and keeping balances below your credit limit can all help your credit score.

Comparison shop

It’s always smart to compare insurance quotes from different insurers before deciding on a policy. This is true when you add drivers to your existing car insurance policy and search for a new one. It’s also best practice to shop for quotes every time your insurance is due for renewal to ensure your rates are competitive.

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