Best Car Insurance for Multiple Vehicles (2023)

Drivers who own multiple vehicles may be eligible for a multi-car discount from their insurance company. The benefits of insuring multiple vehicles with one insurance company include not only the savings but also streamlined account payment and management. If you’re insuring multiple cars, Clearcover is the cheapest insurer, with an average quote of $178 per month, according to Insurify data. 

Additionally, some insurers advertise their multi-car discounts, which can make comparing and shopping for car insurance easier. Here’s what you need to know about insuring multiple cars with one company.

What is a multi-car policy?

A multi-car policy is a car insurance policy that covers more than one car. Multi-car policies are typically for spouses, family members, or long-term partners who reside at the same address.

Living at the same address is key. For example, if you’re a college student who lives out of state, your car might not be eligible for coverage under your parents’ policy, but it depends on the insurer.

Keep in mind that roommates at the same address who aren’t family members or partners should have their own policies. 

Nick Schrader, a Texas General Insurance agent, explains that roommates should have separate policies “unless they are actively driving each other’s vehicles often, which is not a good idea.”

Generally, the benefit of having multi-car insurance is the savings. Insurers offer up to 25% off your insurance premiums when you insure several cars under one policy. Plus, this makes car insurance renewal easier since all the vehicles will have the same renewal date.

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What is a multi-vehicle insurance discount?

A multi-vehicle insurance discount is a type of discount that many different insurance companies offer as an incentive for customers to insure more than one vehicle at an address under the same policy. Not only can customers typically save money, but it streamlines insurance paperwork management too.

Best car insurance for drivers with multiple vehicles

Many car insurance companies advertise various multi-vehicle discount amounts on their websites. Based on the car insurance companies that advertise actual percentages, consumers can expect a discount of somewhere between 12% and 27.3% when insuring multiple cars on the same policy.

Some insurers not listed in the table below still offer multi-car discounts. It’s important to shop around and get quotes from multiple insurance companies to find the best auto insurance rates for you and your personal situation.

Clearcover

Clearcover describes itself as “next-gen car insurance that’s fast, easy, and affordable.” It uses AI technology to pay claims, which sets it apart from the competition. However, it’s a relatively new insurance company that launched in November 2016. Clearcover states it automatically builds common discounts into its prices, which could be why it’s cheaper than other insurers.

Direct Auto

Direct Auto Insurance offers policies regardless of your driving history. Its goal is to make insurance affordable and accessible while providing great service. Direct Auto offers up to 25% off when drivers insure multiple cars. Some of the other discounts it offers include safe driver, military, good student, senior citizen, and drivers education. It also has a DynamicDrive discount, which uses the Routely app to track driving habits and determine a discount based on how safely you drive.

Progressive

Progressive is a large, well-known insurance company that started in 1937 and offers several different discounts to customers, including multi-policy, multi-car, continuous insurance, good student, and more. The average savings for a multi-car discount at Progressive is 12%, although it depends on your cars, coverage, and circumstances. Like with other insurers, any car you add to your policy needs to be at the same address as the other covered vehicles.

Nationwide

Nationwide is a large insurance company that has been in business for 90 years. It offers various auto insurance discounts, including defensive driving, anti-theft, safe driver, automatic payments, multi-policy, and SmartRide, which tracks safe driving habits. It also offers multi-car discounts for families who have more than one vehicle at the same address.

Liberty Mutual

Liberty Mutual is a well-known insurance company that offers several discount opportunities for customers, including a homeowner discount, military discount, early shopper discount, good student discount, and discounts for being a safe driver. While it doesn’t advertise specific savings for insuring multiple vehicles under one policy, Liberty Mutual has a multi-vehicle discount.

Kemper

Kemper operates on the premise that “everyone deserves insurance they can count on.” It specializes in providing insurance to drivers who have had issues obtaining insurance otherwise. Kemper offers several auto discounts, including an advance quote discount, proof of prior insurance discount, paid-in-full discount, good student discount, multi-car discount, and more.

Does multi-car insurance coverage need to be the same on each vehicle?

With most insurance companies, you can customize your coverage for each vehicle on a multi-car policy. Your liability coverage will typically be the same for vehicles on your policy, but you can often adjust your collision and comprehensive coverage amounts. Adjusting comprehensive and collision insurance among vehicles is helpful when one car on the policy is new but another car is older and not as valuable.

What coverage to get for multiple vehicles

Most states have minimum car insurance requirements, which mandate the lowest amount of insurance you must have by law. Some states require drivers to at least have bodily injury liability and property damage liability, while others require drivers to have bodily injury and property damage liability, uninsured motorist coverage, underinsured motorist coverage, and medical expenses coverage.

For example, in Tennessee, motorists need bodily injury and property damage liability coverage.^[1] However, drivers in Maine need bodily injury and property damage liability coverage in addition to medical payments coverage.^[2]

If you have multiple vehicles, it’s important to make sure each one on the policy has adequate coverage. Here are some insurance terms to familiarize yourself with when shopping for the best rates.

Keep in mind that the lowest insurance rates might not offer the best coverage. It’s important to make sure you’re adequately insured in case of an accident.

Liability insurance

There are two main types of liability insurance — bodily injury liability and property damage liability. The first covers the costs of injuries if you injure another person while driving. The second will reimburse others for property that your car damages, like another car, a light pole, a fence, or a mailbox.

Personal injury protection

This is sometimes referred to as PIP or no-fault coverage. This coverage reimburses medical costs, lost wages, and other expenses not only for you but for your passengers as well. 

Collision coverage

This is extra coverage you can buy that will reimburse you for collision damage to your own car. You should get this if you want peace of mind, as basic coverage only covers damage you cause to other vehicles in an accident.

Comprehensive coverage

This coverage applies to noncollision damage to your car, like damage from theft, fire, tree branches, and more.

Roadside assistance

This is sometimes called emergency road service, and it helps pay for services like towing, jump starts, or tire changes on the road.

Gap insurance

Cars typically depreciate in value quickly, and if you’re in an accident soon after buying a new car, you might owe more on your vehicle than an insurance company will pay in a total loss. Gap insurance pays the difference between what you owe on your car loan and what insurance will cover.^[3]

When to get a multi-car insurance policy

Getting a multi-car policy makes sense in a few circumstances. If you’re in a long-term partnership and you live together, you could save by insuring your vehicles on one policy. Another good time to get a multi-car policy is when you get married and haven’t joined policies yet. You can also use a multi-car policy if you own more than one vehicle or when your kids are old enough to drive and get their own cars.

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Should you insure different vehicles with different companies?

Roommates who are at the same address but who aren’t related or married should be on separate policies. Additionally, if your spouse has a bad driving record or poor credit, you might want to insure your vehicles separately, as insurers consider both drivers in multi-car insurance, and your spouse’s bad record could increase your rates.

Multi-car insurance FAQs