The Best Car Insurance Discounts for Multiple Cars

The more drivers and cars you add to your insurance policy, the more expensive that policy becomes. That said, most car insurance companies offer discounts for adding multiple cars, allowing up to 4 vehicles and 4 drivers on a single policy.

In this guide, we’ll look at the biggest multi-car discounts and discuss the benefits of adding additional vehicles to your policy.

Should You Insure Two Cars with Different Providers?

If you have two cars or need additional insurance for a family member, it’s often better to add them to the same policy. The prevalence of multi-car discounts ensures that this is generally the cheaper option, offering between 15 and 25% on average.

However, there are instances when you may want to consider two separate policies with two separate providers. For instance, if one of the cars is relatively new and used for your commute, you should consider a full coverage policy that will cover you for collisions, vandalism, theft, and more.

If the other is an old car without basic safety features and with more demanding maintenance costs, you’ll want a more specialized policy that covers you for the actual value and any appreciation.

A multi-car policy offers other benefits as well. In some states, you can benefit from stacking your coverage. If, for instance, you have two cars covered for $50,000 of personal injury protection, you could combine that coverage for a total of $100,000. The same benefits are offered for uninsured/underinsured motorist protection, although this option isn’t available everywhere and there may be limitations.

It’s also easier to manage. You don’t need to worry about two contracts, policies, and payment demands. Everything is combined in the same policy and requires just one monthly payment. This is especially beneficial when you start combining other car insurance discounts, including payment discounts like going paperless, paying upfront, and selecting autopay.

The Cheapest Multi-Car Insurance Companies

Geico is one of the cheapest insurers for multi-car policies, offering an impressive 25% when you add several vehicles to the same policy. Geico also has some of the most consistently low rates for drivers in most demographics, although the rates can differ substantially depending on location, driving history, and other factors.

State Farm’s multi-car discount is 20% and you can secure a saving of 10% with Progressive. You can also get multi-car discounts with all the following providers, although the rates differ substantially:

  • Travelers
  • USAA
  • Nationwide
  • Liberty Mutual
  • Farmers
  • Allstate

That doesn’t mean that Geico is the best option if you have 2 or more cars. As with all other discounts, it all depends on the base rate.

If Geico quotes you $800 and a 25% discount, that’s a saving of $200 for a total cost of $600. If another company offers an initial price of $650 with a 15% saving, you’ll only save $97.50 but your premiums will drop to $552.50.

In addition, the first insurer might offer you a discount for being in the military, healthcare, or educational sector, whereas the latter may not provide any benefits for these professions.

Get as many quotes as you can, add all the discounts to which you are entitled, and don’t accept the first seemingly good offer that comes along.

Other Ways to Save on Multi-Car Policies

If one of your vehicles is brand-new and expensive but the other one is old and cheap, they probably don’t need the same level of cover. To save a few dollars on your car insurance policy, make sure that both cars have the most basic state-minimum liability coverage and that collision and comprehensive coverage are reserved for more expensive vehicles.

Generally speaking, if you have a vehicle that is only worth $2,000 or $3,000, such as a cheap runaround purchased for a son or daughter, you probably don’t need full coverage insurance.

You should also consider raising your deductible. The higher your deductible is, the lower your premiums will be. Other ways to save on your car insurance include multi-policy discounts, whereby you combine home insurance and car insurance, and good student discounts, which are offered to students who achieve and maintain high grades.