The Benefits of Multi-Car Insurance Policies 2

If you have more than one car in your household, you might want to consider getting a multi-car insurance policy. Multi-car insurance is a type of car insurance that covers two or more cars under one policy, with one insurer, and one renewal date. It can be a convenient and cost-effective way to insure multiple vehicles and drivers in your family.

According to a recent survey by Statista, about 35% of households in the United States had two vehicles in 2019, and another 19% had three or more vehicles. That means that more than half of the households in the country could potentially benefit from multi-car insurance. In fact, some insurers claim that multi-car insurance can save you up to 25% on your car insurance premiums compared to separate policies.

But what are the main benefits of multi-car insurance and how does it work? In this article, we will explore the advantages and disadvantages of multi-car insurance and help you decide if it is right for you.

Benefit 1: Convenience and simplicity

One of the biggest benefits of multi-car insurance is that it simplifies the process of managing your car insurance policies. Instead of having to deal with multiple insurers, renewal dates, payment plans, and contact points, you can have everything under one roof. This can save you a lot of time and hassle when it comes to renewing your policies, making changes, filing claims, or resolving issues.

For example, if you have three cars in your household, each with a different insurer and a different renewal date, you would have to keep track of three separate policies and make sure you don’t miss any deadlines or payments. You would also have to compare quotes from different insurers every year to find the best deal for each car. With multi-car insurance, you would only have to renew one policy once a year and deal with one insurer for all your car insurance needs.

Another example is if you need to make a change to your policy, such as adding or removing a car or a driver, updating your address or contact details, or changing your coverages or deductibles. With separate policies, you would have to contact each insurer individually and go through their procedures and paperwork. With multi-car insurance, you would only have to contact one insurer and make one change that applies to all your cars.

A third example is if you need to file a claim or resolve an issue with your policy, such as reporting an accident or a theft, requesting a repair or a replacement, or disputing a charge or a decision. With separate policies, you would have to deal with different claims processes, customer service teams, and repair shops. With multi-car insurance, you would only have to deal with one insurer and one point of contact for all your claims and issues.

Of course, multi-car insurance is not without its drawbacks. One possible downside is that you might lose some flexibility and customization when it comes to choosing your coverages, deductibles, and add-ons. For instance, if you have different types of vehicles or drivers in your household, such as a sports car, a family car, and a teenager driver, you might not be able to tailor your policy to suit each car or driver’s needs. You might also have to compromise on some features or benefits that are offered by other insurers but not by your multi-car insurer.

For example, if you have a sports car that requires special parts or repairs, you might not be able to get the same level of coverage or service from your multi-car insurer as you would from a specialist insurer. Similarly, if you have a family car that has safety features or low mileage, you might not be able to get the same discounts or rewards from your multi-car insurer as you would from an eco-friendly or low-risk insurer. Likewise, if you have a teenager driver who needs extra training or supervision, you might not be able to get the same support or incentives from your multi-car insurer as you would from a young driver or learner driver insurer.

Therefore, before you decide to switch to multi-car insurance, you should compare the features and benefits of different insurers and policies and make sure that you are not losing out on anything that is important to you.

Benefit 2: Cost-effectiveness and discounts

Another major benefit of multi-car insurance is that it can lower the overall cost of your car insurance premiums for multiple cars. This is because most insurers offer discounts for insuring more than one car with them. The more cars you add to your policy, the bigger the discount you can get.

For example, if you have two cars in your household and each car costs $1,000 per year to insure separately, you might be able to get a 10% discount for insuring both cars under one policy. That means you would pay $1,800 per year instead of $2,000, saving you $200. If you add a third car to your policy, you might get a 15% discount, saving you another $150.

The amount of discount you can get depends on various factors, such as the number of cars, drivers, and their profiles. Generally speaking, the more cars and drivers you have on your policy, the higher the risk for the insurer. Therefore, they might charge higher premiums or offer lower discounts for adding more cars or drivers. However, if all the cars and drivers in your household have good driving records and low claims history, you might be able to get better rates and discounts.

For example, if you have two cars in your household and both cars are driven by experienced and safe drivers with no accidents or violations in the past five years, you might be able to get a 20% discount for insuring both cars under one policy. That means you would pay $1,600 per year instead of $2,000, saving you $400. If you add a third car to your policy and the car is driven by a teenager driver with a learner’s permit and no driving history, you might get a 10% discount, saving you $100.

However, multi-car insurance is not always cheaper than separate policies. One possible drawback is that you might have to pay higher excesses or cancellation fees if you need to make a claim or cancel your policy. For example, if one of the cars on your policy is involved in an accident or gets stolen, you might have to pay a higher excess than if it was insured separately. Similarly, if you want to cancel your policy or remove one of the cars from it, you might have to pay a higher fee than if it was insured separately.

For example, if you have two cars on your policy and each car has an excess of $500 for comprehensive claims, you might have to pay $1,000 in total if both cars are damaged in the same incident. If the cars were insured separately, you might only have to pay $500 for each car, saving you $500. Similarly, if you have two cars on your policy and each car has a cancellation fee of $100, you might have to pay $200 in total if you want to cancel your policy or remove one of the cars from it. If the cars were insured separately, you might only have to pay $100 for each car, saving you $100.

Therefore, before you decide to switch to multi-car insurance, you should compare the costs and fees of different insurers and policies and make sure that you are not paying more than you need to.

Benefit 3: Coverage and protection

A third benefit of multi-car insurance is that it can provide better coverage and protection for multiple cars and drivers in your household. Multi-car insurance can cover different types of vehicles, such as cars, vans, motorcycles, or trailers. It can also cover different types of drivers, such as spouses, partners, children, parents, siblings, friends, or employees.

Multi-car insurance can also cover different types of situations, such as theft, vandalism, accidents, breakdowns, or emergencies. For example, if one of the cars on your policy breaks down or gets a flat tire, you might be able to get roadside assistance or towing service from your insurer. If one of the drivers on your policy gets injured or stranded in an accident, you might be able to get medical or travel expenses from your insurer. If one of the cars on your policy gets stolen or damaged by fire, you might be able to get a replacement car or a courtesy car from your insurer.

For example, if you have three cars on your policy and one of them breaks down on the highway, you might be able to call your insurer and get a tow truck to take your car to the nearest repair shop. You might also be able to get a courtesy car from your insurer while your car is being fixed. If the other two cars on your policy are still working fine, you can continue using them as normal. If the cars were insured separately, you might not be able to get the same level of service or convenience from each insurer.

Another example is if you have three drivers on your policy and one of them gets into an accident with another driver who is uninsured or underinsured. You might be able to claim from your insurer for the damages and injuries caused by the other driver. You might also be able to get legal assistance from your insurer if you need to sue the other driver for compensation. If the other two drivers on your policy are not involved in the accident, they can continue driving as normal. If the drivers were insured separately, you might not be able to get the same level of coverage or protection from each insurer.

A third example is if you have three cars on your policy and one of them gets stolen from your driveway. You might be able to report the theft to your insurer and get a replacement car of the same make and model. You might also be able to get a courtesy car from your insurer while you wait for your replacement car. If the other two cars on your policy are still safe and secure, you can continue using them as normal. If the cars were insured separately, you might not be able to get the same level of compensation or convenience from each insurer.

Of course, multi-car insurance is not without its limitations. One possible drawback is that you might have lower limits or exclusions on your policy. For example, if you have a multi-car policy with a limit of $100,000 per accident, and two of the cars on your policy are involved in the same accident, you might not be able to claim more than $100,000 for both cars. Similarly, if you have a multi-car policy with an exclusion for driving abroad, and one of the drivers on your policy drives one of the cars outside the country, you might not be covered for any incidents or damages.

For example, if you have three cars on your policy and each car has a limit of $50,000 for property damage, you might not be able to claim more than $100,000 in total if two of the cars are damaged in the same incident. If the cars were insured separately, you might be able to claim up to $50,000 for each car, saving you $50,000. Similarly, if you have three drivers on your policy and one of them drives one of the cars to Canada for a vacation, you might not be covered for any incidents or damages that occur in Canada. If the drivers were insured separately, you might be able to get coverage for driving abroad from each insurer.

Therefore, before you decide to switch to multi-car insurance, you should check the limits and exclusions of your policy and make sure that you are not losing out on any coverage or protection that is important to you.

Conclusion

Multi-car insurance is a type of car insurance that covers two or more cars under one policy, with one insurer, and one renewal date. It can offer several benefits for households with multiple cars and drivers, such as convenience and simplicity, cost-effectiveness and discounts, and coverage and protection.

However, multi-car insurance is not suitable for everyone. It might also have some drawbacks, such as lack of flexibility and customization, higher excesses and cancellation fees, and lower limits and exclusions. Therefore, it is important to compare and choose the best multi-car insurance policy for your needs.

If you are interested in getting a multi-car insurance quote or finding out more about multi-car insurance options, please contact us today. We will be happy to help you find the best deal for your household.