Multi car insurance policies can be one of the most effective ways of lowering your auto insurance premiums. Insurers offer multi car discounts as incentive, since the added business brings the insurance company more revenue. But while signing up for multiple car insurance saves the average person about 25 percent, it’s not always the most economical option. Here are a few facts about multi car insurance policies that you might not know.
- People who share the same household can take advantage of multi car discounts even if they’re not family. In other words, you don’t have to be married to someone or directly related in order to take advantage of the discounts.
- Bad driving habits can cancel out good driving habits. If you have a stellar driving record, sharing a policy with someone who has a less-than desirable record might actually increase the amount you pay. Likewise if you have a history of accidents or tickets, going into multi car policy with someone without a blemish on theirs won’t save you money. In this case, it makes more sense to have separate policies.
- Some insurance providers require that all cars under a shared policy have the same level of coverage. But the older a vehicle is, the less sense it makes to carry full coverage—whereas someone with a brand new car may want comprehensive insurance.
- You can continue to carry your children on your family insurance policy until they’re 25, as long as they still live with you.
- If you own more than one car and live alone, you can still take advantage of multi car discounts.