Buying car insurance means buying coverage for all your vehicles. In most cases, every car in your possession needs a policy. Every driver, from you to your spouse or children, needs coverage also. However, that may not necessarily mean that they all need separate policies. At times, you can insure all vehicles and all drivers on a multi-car insurance policy. On the other hand, sometimes you might need more than one policy, nonetheless. What are some of the factors that might influence your decision to buy multi-car policies?

What are multi-car policies?

A multi-car policy is exactly what it sounds like. While some car insurance policies only insure one vehicle, a multi-car policy can include all vehicles owned by the policyholder. They can also usually insure multiple drivers as well.

Many people like multi-car policies because they offer the convenience of one policy package for multiple vehicles. So, policyholders might not have to worry about juggling multiple policies.

These policies are often very beneficial to families. For example, you might drive a car, your spouse might drive theirs’ and your children will eventually need cars, too. Rather than maintaining two or more policies, and the various responsibilities of each, a multi-car policy can let you put coverage all in one place.

The Perks of a Multi-Car Policy

For vehicle owners with multiple cars, a multi-car policy might prove just the ticket. Here are just a few of the reasons why:

• With a multi-car policy, the driver will only pay one premium, instead of multiple insurance payments. First, this is often cheaper than buying multiple policies. Second, it can reduce the risk of ever missing payments or causing coverage lapses because you forget to pay for one of several policies.
• Multi-car policies have only one expiry and renewal date. Therefore, you won’t have to juggle multiple policy renewals throughout the year.
• Often, buyers qualify for special multi-car insurance discounts, which can reduce your premium.
• You can generally list multiple drivers on the policy. Therefore, all drivers will have coverage regardless of which vehicle they drive. So, if your spouse drives your car to work one day, they will still have coverage.
• In families, it is not uncommon for one person to hold the title (i.e. the official ownership) of all vehicles. For example, the parents might both sign the title on their child’s car. A multi-car policy will therefore ensure that all owned vehicles have coverage regardless of who drives them.
• All your vehicles will have cohesive coverage. So, when you buy the insurance required by your state, all vehicles will have at least that protection.
• In some cases, you can tailor optional parts of your coverage to each vehicle. For example, every vehicle will likely have to have liability insurance, and this coverage will remain cohesive for all cars. However, optional coverage, like collision and comprehensive insurance, you might be able to tailor by vehicle.

Multi-car Policy Drawbacks

Based on what we’ve already told you, you might think it is a great idea to run out and get a multi-car policy. However, not so fast. Depending on your specific driving needs, you might find that a multi-car policy is not right for you.

• If you own specialty vehicles, like RVs or motorcycles, you cannot insure these vehicles on the same policy as your standard cars. You will need specialized RV or motorcycle coverage.
• Commercial vehicles will not be insurable under a multi-car personal policy.
• Drivers who own classic or antique vehicles likely will benefit from insuring these cars under a specialized policy. A standard multi-car policy won’t likely provide enough coverage for these vehicles.
• If you don’t own a vehicle (meaning your name is not on the title), then you likely cannot add that car to the multi-vehicle policy. It will need its own. So, if your child owns their vehicle, and you are not a co-owner on the title, then you likely cannot add this car to your policy.
• You might have a high-risk driver in your home. For example, your spouse might have an SR-22 penalty that applies to their car insurance eligibility. In a case like this one, your spouse might need their own car insurance. If they don’t own a car, then a non-owner policy might suffice. This will insure the driver’s liabilities. However, you might still be able to add the vehicle itself to your own multi-car policy.

Are Multi-Car Policies the Same as Insurance Bundles?

Insurance bundles are not the same thing as multi-car policies. An insurance bundle is an incentive offered by various insurance companies. You might get one when you buy multiple types of policies from the same company. For example, if you buy your home insurance, car insurance and life insurance from the same insurance company, then you might be able to bundle the policies.

Bundling might qualify you for discounts on your overall premiums. Furthermore, you might also be able to coordinate your various policies’ payment dates and terms. You therefore might make your policy management even easier. The good thing about bundling is you can usually still get multi-car policies to include in the bundle.

Also Read: What Does Full Coverage Actually Mean?