How Do I Get a Multi Car Discount

A young couple buying a new car
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If you have multiple vehicles in your household, you’re in luck: you automatically are set to receive a great car insurance discount. A multi-car discount won’t make it worth it for you to buy two vehicles just for the heck of it, but it will certainly make insuring multiple vehicles a little easier on your wallet.

If you have two or more vehicles, shopping around for car insurance only becomes more important.

If you have five or more vehicles, it’s fleet insurance you should be after, not a multi-car insurance discount. But how many non-taxi business owners does that apply to, really?

The multi-car discount is probably one of the most common car insurance discounts. It is simply getting the multi-car discount because it is basically fool proof. If more than one vehicle is on a single policy, the multi-car discount is automatically applied.

  • Multiple vehicles in a single household, by design, get the multi-car discount. The only time the discount does not apply is when the second vehicle on the policy is in storage, also known as comprehensive coverage. So the vehicles on the policy need to have PLPD coverage or more to qualify for the discount.
  • Multiple car policies through the same carrier in the same household can usually still get the multi-car discount. For example, if your teen driver has a separate policy but lives in the same household, then the multi-car discount can be applied. The multi-car discount can really help reduce the high cost of insurance for a teen driver. Ask your agent if it is possible to get a multi-car discount if you have multiple auto policies in your household.
  • The multi-car discount is added to each individual vehicle once. At the time the second vehicle is added the discount is applied to both vehicles. If a third vehicle is added, the discount is added to the third vehicle at that time. The original vehicles will remain the same. The multi-car discount does not compound with more vehicles added.
  • The multi-car discount is actually available on policies other than your car insurance. Motorcycle policies commonly have a multi-car discount. The same rules apply for a motorcycle multi-car discount as it does on a car insurance policy. Boats and RVs are also eligible; however, less common because people often only own one boat or one RV.

    Remember the multi-car discount is nice to have, but it's unlikely for two cars to be cheaper than one on an insurance policy. However, I have seen people very disappointed when they remove a vehicle from their car insurance policy and their price is only reduced only by $10 to $20 a month. The cause of this is often the multi-car discount being removed from the single remaining vehicle, essentially raising the rate on the remaining car. Little quirks like this can be frustrating when you do not really understand how the policy works.

    Make sure you ask your insurance agent if you ever have questions about your policy coverage or premium.

    It is a good idea to keep all your vehicles under one insurance carrier. Both the multi-car and multi-policy discount make it very difficult to financially benefit from separating your policies. Make sure you know how to get the multi-car discount when purchasing car insurance.