Insuring Two Cars

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  If you want both cars on one policy, the multi-car discount average for a second vehicle on your insurance is between 10% and 25%. The more vehicles you add to your policies, the lower your rates will be as compared to purchasing separate policies for each.

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  To qualify for a multi-car policy, all vehicles to be insured on the policy should be registered and parked at the same address. Insurance is a complicated, complex topic for many reasons. Because the minimum auto insurance required by state varies and limits and laws can also be so diverse, it’s always best to shop around for the best possible prices.

Multi-vehicle discounts are available from most of the best auto insurance companies, and this is how drivers can insure two cars at once. Take a look at this table to find out which major insurance companies offer this discount and how much it can affect your rates.
Multi-Vehicle Auto Insurance Discounts Available by Company

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As you can see, you can save up to 25% with this multi-vehicle discount when you can have at least two vehicles on one insurance policy.

The U.S. Census Bureau reports that 21% of American households own at least three vehicles. That’s good news, as most insurance providers will allow multi-car policies with up to four cars on a single policy for the non-fleet car owner. Bundled policies can keep this from getting too expensive; however, there are other ways to bring the costs down depending on the type of cars being insured.

Can two people insure the same car? Two drivers insuring the same car may be considered a form of “stacking coverage,” which can also open you to the risk of insurance fraud and a violation called “unjust enrichment.” This happens when someone has a covered loss and tries to file claims with two separate policies on the same vehicle. This could be punishable by steep fines and could even lead to jail time.

Another example of two people trying to cover the same vehicle is if an older teen driver purchases their first insurance policy, but their parents are worried the coverage will not be sufficient. In that case, consider the following:

• If the policy is written for a car that is driven by everyone in the family, it should be a multi-driver policy that lists everyone who might drive that vehicle at any time.
• If the policy is for a vehicle that is owned by the teen, it may be beneficial (but not less expensive) for the teen to be the sole person on the policy. This should be the only policy on this particular vehicle because of the risk of legal violations (which we previously discussed).

• If the teen is under 18 and still living at home. In that case, it’s unlikely an insurance company will sell them their own policy, so they’ll probably need to be added to their parents’ policy (if they’re not already listed).
• If the parent has concerns about whether the auto insurance for teenage drivers that their older teen is purchasing will provide sufficient coverage, they should review the policy with their own agent before it is finalized.
• If a teen purchases their own policy for a vehicle they own, parents can consider excluding their teen from their own policy; however, if the teen ever borrows the family car, they should still be listed as a driver on the policy.

What else should you know about a multi-car policy?

In some states, double coverage for a single vehicle will not even be written by the same insurance company. In that case, you would have to shop around for another policy with another insurance company (though in many states it’s illegal to stack coverage).

If you have any concerns about the type or amount of coverage, it is better to discuss those concerns with an agent to get the right amount of protection at a reasonable price without exposing yourself to potential fines and more.

If you are asked if there is coverage in place on the car already and answer no, you could be charged with insurance fraud.

Depending on the fraud level (soft fraud vs. hard fraud), the charge would likely be a misdemeanor in most states and can result in a fine and possible probation for a set period.

Jail may be an option, but only in extreme cases, and it would most likely be for a period of fewer than five years. Even if you live in one of the states with the fewest auto-related scam reports that doesn’t prosecute as harshly as other states, the last thing you want is to commit fraud.

Remember, you can commit soft fraud without intending to do so without even realizing it, so carefully review your policy application statements before signing anything.

Always be truthful when looking for a quote and when you are speaking to an insurance agent so you can avoid any problems.

Do your research and remember, getting affordable auto insurance for two cars with one driver is possible, though auto insurance rates will be different based on several factors.

Can I use a no-claims discount on both of my cars?

Your no-claims discount will be applied to your vehicle when you haven’t had a claim. It’s likely that the insurer will only apply it once. The table below shows which insurance companies offer no-claim discounts.
No Claim Auto Insurance Discounts Available by Company

The percentage by which your rate may be reduced with this discount can increase for each year that you don’t file a claim for an accident (up to a set limit).
If you have multiple vehicles, you’ll want to make sure you have the best and cheapest coverage for them.

Do you have more questions?

Still have questions about insuring two vehicles for one driver, multi-car insurance discounts, etc.? Before searching for multiple car insurance quotes, read these frequently asked questions for more.

#1 – Do auto insurance rates vary depending on who is identified as the primary driver for a vehicle?

The short answer is yes. Driving record, age, and often gender (though this depends on where you live) all affect your insurance rates, so whoever is identified as the primary driver for a particular vehicle will affect the rates for that vehicle.

#2 – Why are you required to ensure all the vehicles you own when you only drive them one at a time?

In general, any vehicle that is registered must be insured. Insurance is required in most states for any car that may be out on the road, so any registered vehicle you own must be covered with insurance policies. This can be expensive, depending on the auto insurance company you choose, but access to a variety of discounts and different policy service options can give you additional savings. Just make sure that this is a conversation that you have with an agent when you are shopping for insurance coverages.

They will know more about the discounts you can be getting to help you save money on your monthly payments.

#3 – Can you add a car to your insurance policy online?

Something like this is completely in the hands of insurance companies. You can call your insurance company or check the company’s website to find out if you can use an online portal to add another vehicle to your policy. You may even be able to add other drivers to your insurance policy online, should you ever need to do so.

#4 – How much coverage do you need?

You’ll need coverage that at least meets the minimum requirements set by your state. Any additional coverage is up to you (unless your vehicle is financed, in which case your loan terms may outline specific coverage requirements). The amount of coverage you should purchase depends on what you drive, where you live, etc. Only you can decide how much coverage you need, based on your specific circumstances and the risks you face when you get behind the vehicle. Researching what’s available through multi insurance quotes, can help you make an informed choice on the best coverage for you.

Ready to find affordable multiple auto insurance quotes in your area? Now that you know one driver can get insurance for two cars, enter your ZIP code to get free multiple car insurance quotes at once, from auto insurance providers today.