Insurance for Multiple Vehicles: A Guide (Updated 2023)

If you need to insure more than one vehicle, a multi-car policy is likely the cheapest way to do so. Luckily, most car insurance companies offer multi-car policies and provide a discounted rate on them up to 38 percent, according to our research. You can use Insurify to compare auto insurance quotes today and find the best multi-car policy for you.

Cheapest Car Insurance Companies for Multi-Car Policies

To understand which companies consistently offer the lowest rate to policyholders, we looked at 1.9 million multi-vehicle car insurance quotes and calculated the average quote offered by each company. These are the companies offering the cheapest rates for multi-car policies.

How much does car insurance cost for two cars?

The national average cost of car insurance for a two-car policy is $273 a month according to our research. That’s based on the average of thousands of auto insurance quotes in Insurify’s proprietary database. But the rate you pay depends on a number of factors, including:

Where you live—areas with heavy traffic tend to have higher insurance rates.

The cars you drive—newer or more expensive vehicles tend to cost more to insure.

The types of insurance coverage you carry—liability coverage (bodily injury and property damage), collision coverage, comprehensive coverage, underinsured/uninsured motorist coverage, and personal injury protection (PIP), for example.

Your coverage limits—the higher your coverage limits, the more you pay. But additional coverage may cost just a few dollars more for significantly better coverage.

The number of drivers on your policy—the more people you insure, the more expensive the policy.

The driving history of the people insured—people with clean driving records pay less than people who have had at-fault accidents, speeding tickets, or DUIs.

Your credit score—people with good credit pay less than people with poor credit.

If you consider how these factors affect your insurance premiums, you can set yourself up for lower rates now and in the future. For example, you can focus on raising your credit score to get a lower rate. You can save up to $200 a month by dropping full-coverage car insurance on any vehicle worth less than $5,000.

Insurance companies rate your risk level based on these factors. Each company will have a different assessment of your risk, making it difficult to predict exactly which company will offer you the best rate.

How Multi-Vehicle Car Insurance Policies Work

Multi-car policies work just like single-car policies: you decide on coverage types (liability, collision, comprehensive, etc.) and coverage limits. To get a quote, you just need to provide:

• The makes and models of each car on your policy and possibly their vehicle identification numbers

• The types of coverage and coverage limits you need

• Information for each driver on your policy, including driver’s license numbers and dates of birth

To qualify for a multi-car policy, your cars need to be registered to the same address and may need to belong to the same individual. But not always. Some insurers only require that all cars remain overnight at the same address most of the time. All providers will limit the number of vehicles allowed on a single policy, usually five or fewer.

You may be able to add a driver and their vehicle even if the driver doesn’t live with you. Typically, this means getting a policy that covers you and your child, but other family members may be included. Different insurance companies have different policies regarding how to add multiple cars to your policy. Most of the time, non-relatives cannot be added to your policy.

Of course, the least expensive company, in general, doesn’t mean it’s the least expensive company for you. Each insurer has different overhead costs and will assess your risk factors differently. The best way to know that you’re getting the lowest rate is by comparing car insurance quotes before you buy.

Multi-Car Discounts by Company

The easiest way to save money while insuring more than one vehicle is by using a multi-car or multi-vehicle discount. Keep in mind that some companies don't offer a multi-car discount and companies that do offer different discounts for different circumstances. Be sure to review the policies of your insurance company.

In the table below, we’ve gathered the discounts offered by top companies for purchasing a multi-vehicle policy.

Remember that you’ll have access to discounts beyond the multi-car discount. There’s no reason not to get all the discounts you’re entitled to—the more discounts you get, the lower your costs. Here are a few to look out for:

• Multi-policy (bundling)

• Good driver

• Defensive driving course

• New car

• Car safety features

• Good student

• Anti-theft devices

• Military, employer, or affiliation

If you’re unsure you’ve gotten all the discounts you can, when you compare car insurance quotes, you’ll be able to unlock all your eligible discounts to apply to your premiums.

Cheapest States for Car Insurance for Multi-Car Policies

Where you live has one of the most significant effects on your car insurance premium. Your ZIP code’s claim rates, crime rates, traffic patterns, road conditions, and climate all signal certain levels of risk to your insurance company. Plus, state regulations — such as types of required coverage and coverage limits — also affect costs.

Below are the five states with the cheapest car insurance policies for multiple cars.

You should also know that where you live within your state can mean that you pay more or less than the state average. For example, if you live in your state’s largest city, you’ll probably pay more than the state average. If you live in a small town, you may pay less.

Benefits of a Multi-Car Insurance Policy

When you have several cars to insure, it’s almost always worth it to buy a multi-car policy. Multi-car policies usually offer the lowest cost to you while also making it easier for you to manage your policy.

One Payment

When you have just one policy, you have just one payment, simplifying the process. You also have to manage bill pay or billing disputes with one company. And you’ve got just one renewal date to remember. On the other hand, you’ll pay the entire monthly cost on one day of the month, which may be undesirable.

Shared Deductible

If more than one of your cars is damaged in a single incident, you only have to pay one deductible. For example, a hailstorm comes through your area and causes hail damage to both your cars. You can submit a single claim with one deductible to cover both of your vehicles. Shared deductibles are never an option when you have separate policies.

Insurance “Stacking”

In some states, you’re allowed to stack uninsured and underinsured coverage limits in the event of a claim. Let’s say you're hit by an uninsured motorist. If you have uninsured motorist protection of $50,000 per person and $150,000 per incident on two vehicles, you can “stack” those limits to double the base amount to $100,000 per person and $300,000 per incident.

Significant Discount

The multi-car discount is typically one of the best discounts available, second only to bundling your car policy with other insurance products. Some companies give you more than 20 percent off your total, which can save you hundreds every year. Be advised that some companies offer the multi-car discount under a different name, such as a loyalty discount.

Of course, it’s hard to know which company will offer you the lowest rate unless you conduct comparison shopping. Insurify makes it easy to compare multi-car policies from six or more insurers.

The Best Car Insurance Quotes for Multiple Cars

For most people insuring a second car (or more!), a multi-car policy offers the most perks and the greatest savings. And when they use other cost-saving measures—such as stacking car insurance discounts—they can lower their costs even more.

But there’s only one way to be sure you’re getting the best rate available and that’s by comparing car insurance quotes with Insurify. Fill out one form and receive accurate quotes from six or more companies without sharing your personal information. Our car insurance comparison tool is free and easy to use, try it out today.