Can You Have Two Cars on One Auto Insurance Policy?

Last Updated on March 18, 2020

Whether you’re married, you have a teen who recently started driving, or if there is anyone else living in your household who drives, you are probably wondering if you can insure two cars on the same insurance policy.

Yes, you can! And doing so can save you a tremendous amount of money!

Car insurance providers offer discounts when two or more vehicles are insured on the same policy. Known as a multi-car policy, this type of coverage can save you a substantial amount of money if you need to insure more than one car. If you’re interested in insuring more than one vehicle on the same auto insurance policy, continue reading to learn more about multi-car discounts.

two cars same insurance policy

What is a Multi-Car Discount?

As the name suggests, a multi-car policy is auto insurance that can cover multiple cars; often as many as five. This type of coverage offers all of the same advantages as a standard auto insurance policy, and it can save you a good bit of money.

As long as the vehicles that are being insured on the same policy are registered to the same address, they can be insured under the same multi-car policy. Depending on your insurance provider, you may also be able to choose different levels of coverage for each of the cars that are insured under this policy.

How does a Multi-Car Policy Work?

In order to obtain a multi-car auto insurance policy, you will be required to insure at least two passenger vehicles on the same car insurance policy. As mentioned above, the vehicles also need to be registered to the same address.

To acquire this type of policy, you will have to provide your insurance provider with the same information you would for a single-vehicle policy. This information includes the vehicle identification number (VIN) for all of the cars that will be insured on the same policy, as well as the names and numbers of the licenses for all drivers on the policy.

Typically, the car insurance provider will limit the amount of vehicles that may be covered by a multi-car policy; usually the limit is four or five cars. Also, the rules for the insurance will differ from provider to provider. For example, some insurers will only permit drivers that are related (spouses and children, for example) on the same policy, while others will only require you to live at the same address and do not require all drivers be related.

Are All Vehicles Required to Carry the Same Amount of Coverage?

All vehicles covered on a multi-car policy will need to carry liability insurance, as this type of coverage is a legal requirement. Typically, insurance companies will require all vehicles on a multi-car policy to carry the same amount of liability coverage, as this will eliminate any confusion regarding how much liability coverage is obtained by each vehicle. However, you may be able to only carry liability for some cars, while other cars may carry collision and comprehensive coverage, in addition to liability coverage, under a multi-car policy. Furthermore, your insurance company may allow different amounts of coverage for optional coverages (anything outside of liability); for instance, you can carry collision coverage for two vehicles, but the amount for each vehicle can be different.

How Much can you Save with a Multi-Car Policy?

All car insurance providers offer discounts for multi-car policies; however, the amount of that discount does vary from provider to provider. Generally, the discount ranges between 10 and 25 percent. To find out how much you can save, speak to the insurance company you are considering working with.

Why is a Multi-Car Policy Beneficial?

In addition to receiving a discounted rate on a multi-car policy, you will also be able to insure all cars under one policy. As such, you’ll have the payments for the insurance will be due on the same date, as will the renewal date for the policy. If you carry separate policies for every vehicle in your household, not only will you be unable to take advantage of a discounted rate, but you will also need to keep tabs on several policies, including payment and renewal dates. In other words, carrying a multi-car policy not only saves you money, but it also simplifies your auto insurance needs.

Who Should Consider a Multi-Car Auto Insurance Policy?

A multi-car insurance policy is a wise idea for households in which more than one vehicle is used. Examples of who this type of policy would be beneficial for include:

  • Households with more than one driver
  • Couples who drive separate cars
  • Individuals who own and operate more than one vehicle

To further lower the cost of a multi-car policy, make sure that you and everyone covered by the policy maintain good driving records. If infractions occur, you’ll still receive a discount, but rates will be subject to increase.

James Shaffer
James Shaffer James Shaffer is a writer for 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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