Everything You Need to Know About Multi-Car Discounts

Last Updated on August 5, 2021

Multi-car discounts are the most common car insurance discount available to drivers in the United States. As long as you insure more than one of your automobiles with a single auto insurance provider, there’s a good chance you’ll qualify for this discount.

Are you eligible for a multi-car insurance discount? Can your family save money by insuring multiple vehicles on the same plan? Today, we’re explaining everything you need to know about multi-car discounts and how they apply to you.

Most Multi-Car Households Are Eligible for Multi-Car Discounts

multi-car discounts explainedGenerally speaking, any household with multiple vehicles will be eligible for multi-car discounts. To qualify, you simply have to insure the vehicles with the same insurer.

Some insurance companies require all vehicles to be registered under the same name and owner. Most insurance companies, however, allow you to bundle car insurance policies together when all vehicle owners are legally residing in the same household.

The only time you may not be eligible for a multi-car insurance discount is when you have a unique type of insurance on a certain vehicle. If you only have storage insurance on one vehicle, for example, then you won’t get a multi-car discount on your primary vehicle.

Similarly, not all insurance companies offer multi-car discounts when you bundle motorcycle insurance with an ordinary car insurance plan.

Typically, a multi-car insurance plan will cover 2 to 5 vehicles. The discount does not increase as you add more vehicles to the plan. You don’t get a bigger discount when you add a third, fourth, or fifth vehicle to your insurance policy.

Are Multi-Car Insurance Plans Always Cheaper?

In almost all cases, it’s cheaper to have a multi-car insurance plan than multiple single-vehicle policies.

Nevertheless, some drivers expect major discounts from multi-car insurance plans when, in reality, the difference isn’t as big as you expect. Some drivers might save just $10 or $20 per month off their monthly premiums, for example.

The only situation where multi-car insurance plans are more expensive is when a bad driver moves into your household. If a driver with multiple at-fault collisions or DUIs moves into your household as an eligible driver of your vehicles, then tries to add their vehicle to your insurance policy, then you might notice your rates increase. In this situation, it may be better to maintain multiple single-vehicle policies.

Which Insurance Companies Have the Best Multi-Car Discounts?

Different insurers offer different discounts for insuring multiple vehicles with them. Here are the current multi-car discounts offered by the major insurance companies:

Insurance CompanyDiscount Details
AAAAAA offers up to a 27% multi-vehicle discount.
AllstateDiscount varies, but you can expect around a 10-25% discount from Allstate.
American FamilyThe typical multi-vehicle discount with American Family is around 15%.
AmicaYou can save up to 25% by insuring multiple vehicles with Amica.
Auto-OwnersDiscount varies, but if you insure more than one vehicle on your Auto-Owners insurance policy, you will qualify for the discount.
ErieErie offers a 15% to 30% discount for insuring multiple vehicles.
EsuranceDiscount varies, but you can expect at least a 10% multi-car discount from Esurance.
FarmersDiscount varies, but you can expect at least a 10% discount from Farmers.
GEICOUp to 25% discount for insuring multiple cars on the same policy.
Liberty MutualThe Liberty Mutual multiple vehicle discount varies, but is usually 15-20%.
MetLifeIf you have multiple vehicles on a single MetLife policy, you could save 10% to 15%.
NationwideDiscount varies, but you can expect at least a 10% discount from Nationwide.
ProgressiveUp to 10% discount through Progressive for insuring multiple vehicles on the same policy.
State FarmState Farm offers up to a 25% discount for insuring multiple vehicles.
The GeneralDiscount varies, but you can expect at least a 10% discount with The General for insuring multiple vehicles.
TravelersTravelers offers up to a 8% discount for insuring multiple vehicles.
USAADiscount varies, but you can expect at least a 10% discount with USAA.

Can I Get a Multi-Car Insurance Discount If I’m Not Married to the Other Driver?

If you live with someone but aren’t married, then you may or may not be eligible for multi-car insurance discounts.

Some insurance companies are very flexible with discounts. They provide multi-car discounts for all vehicles registered to drivers living in the household – including roommates, partners, children, etc.

Other insurance companies require all vehicles to be registered to the same driver. Some insurance companies allow vehicles to be registered to the same driver and/or the spouse of that driver.

There are also some insurance companies that require all listed drivers to be related. That means your multi-car discount will apply to you, your legal partner, and any children or parents living with you.

Ultimately, the best option is to compare insurance plans to decide the right policy for your unique needs.

How to Add Another Car to your Insurance Policy

So you’re ready to save money on car insurance. You want to add your vehicle to your insurance plan to get a multi-car discount.

Adding another car to your policy is easy. You’ll need:

  • The vehicle identification number (VIN) of the vehicle you’re adding
  • Your policy number
  • The year and make and model of any vehicles you’re adding
  • The date of birth and driver’s license number of any additional drivers
  • Lienholder information (where applicable)

Remember: if any driver in the household gets into an accident while driving under multi-car insurance coverage, then their premiums will increase, and this will also increase the total monthly premiums for the entire household and the entire insurance policy.

Other Benefits of a Multi-Car Insurance Policy

A multi-car insurance policy is a great way to save money when insuring multiple vehicles. However, lower insurance rates aren’t the only benefit of a multi-car policy. Other benefits include:

  • The convenience of dealing with a single insurance agent or a single insurance company
  • The ease of dealing with a single set of paperwork
  • You don’t need to worry about multiple renewal times; all policies are renewed on the same deadline
  • All drivers in a household with a multi-car policy will be eligible to drive all vehicles insured under that policy

Final Word on Multi-Car Discounts

On average, a multi-car insurance policy will save you 10% to 25% off the cost of an ordinary car insurance policy. That means you’re paying 10% to 25% less for your liability, collision, and comprehensive insurance. Contact your insurance company today to talk to them about saving money by putting all of your vehicles on the same insurance policy.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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