Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 24, 2020

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Things to remember...

  • Combining multiple cars on one policy can save you money
  • Married couples can also save money on their auto insurance policies
  • Children can remain on a parent’s policy at least until age 21

Most American households own more than one car. If you’re married with children, you might find yourself paying for 3 cars and 3 drivers’ insurance coverage. Even if you and your spouse have a third vehicle but no children, you’ll want to understand the difference in rates for 3 cars and 2 drivers’ insurance.

Your insurance company looks at your risk-to-reward ratio. The greater you make their potential reward, the lower your rates. You can save on auto insurance with three vehicles by knowing the factors that affect auto insurance rates.

Are you ready to discover the best way to insure multiple cars and save on auto insurance with three vehicles? Enter your ZIP code in our quote comparison tool above.

Can I save if I combine multiple cars on one policy?

The United States Census Bureau found that 21 percent of American households own three or more vehicles. You can save on auto insurance by covering multiple cars on one policy. However, while you’re technically insuring cars, you’re really insuring drivers.

For an idea of what you might pay for each driver, compare the average annual rates based on driver demographics.

National Average Auto Insurance Rates by Driver Marital Status, Age, & Gender
Driver Marital Status,
Age, & Gender
Average Annual
Auto Insurance Rates
Married 60-year-old female$2,243.26
Married 60-year-old male$2,307.79
Married 35-year-old male$2,445.85
Married 35-year-old female$2,449.06
Single 25-year-old female$2,703.28
Single 25-year-old male$2,889.27
Single 17-year-old female$7,559.03
Single 17-year-old male$9,027.64
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If each car has a different driver, you can combine them under a single policy under certain conditions. Obviously, a married couple can have car insurance for 2 cars on one policy. Looking at the table, the average cost of car insurance for a married couple in their mid-30s would be $4,894.91. By shopping around, you can easily find cheap car insurance for 2 cars and 2 drivers.

Minor children can remain on a parent’s policy until age 21. In some states, the cutoff age is 26 if the child is a student. Auto insurance prices for teenagers can be pretty steep because they’re more likely to engage in risky driving behavior. According to the Centers for Disease Control and Prevention, newly licensed teens, especially males, have a higher risk of being involved in a fatal crash.

Combining three drivers on one policy will save money over having 3 vehicle insurance policies.

Teens who don’t qualify to be on your policy can have a separate policy on the same “account” as long as they live with you. That won’t save as much, but it will reduce the cost of your child’s insurance.

Use our quote comparison tool to find the best multi-vehicle auto insurance rates.

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How many cars can you have on your insurance?

If you’re single, you might be thinking, “I have 2 cars to insure. Can I insure 2 cars in my name?” As we mentioned before, while auto insurance covers the vehicles, the policy actually insures the driver. So, if you’re wondering how to insure two cars for one driver, simply call your insurance company to add the additional vehicle to your policy.

Won’t insuring 2 cars in my name be expensive? Your average car insurance cost for 2 cars will increase slightly depending on the make and model of the second vehicle.

If you’re the only driver on the policy, you won’t pay as much as you would for car insurance for two cars and two drivers.

The same is true if you need multi-car insurance for two drivers. Car insurance for 3 cars and 2 drivers will be based on driver demographics first and vehicle type next.

What if I buy a new car?

Buying a new car triggers higher rates because it increases the value of the policy. To get the best rate, assess all three drivers and their relation to the vehicles. When you need auto insurance for multiple cars, assign the most expensive car to the lowest-risk driver to keep rates down. Consider our three-vehicle scenario where a father, mother, and a 19-year-old son need coverage.

Since your new car is most likely the most valuable, you’ll want to assign the driver with the least risk to that vehicle. If all three drivers have equal driving records, the mother should become the principal driver of the new car, dad would get the car second in value, and the son would get the lowest cost vehicle to insure. Buying your son a new car and listing him as the principal driver is guaranteed to raise your rates.

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Can I combine other policies?

You can bundle your multi-vehicle policy with homeowners insurance, life insurance, umbrella coverage, etc. for additional savings. Bundling is just one of the auto insurance discounts available.

Insurance companies bundle policies to make more money. You’re unlikely to make a claim on more than one of those policies within a given period, yet you’re paying for all of them.

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How can I save on my auto insurance with three vehicles?: The Bottom Line

In a multi-vehicle household, you’ll want to know how to insure two cars or more without breaking the bank. Remember, car insurance for two cars and two drivers will be more expensive than average car insurance for two cars for one driver because the company bases rates more on the driver, not the vehicles.

We hope you’ve learned some valuable tips for how to insure multiple cars and save money in the process. If you’re ready to find the cheapest 3-car insurance policy, enter your ZIP code in the box below!

Frequently Asked Questions: How can I save on my auto insurance with three vehicles?

#1– What are the best cars for insurance in a multi-vehicle household?

Minivans, small SUVs, and small pick-up trucks have the lowest insurance rates. Large sedans on average cost the most to insure.

#2 – What is Code 3 Car Insurance?

Code 3 Insurance provides auto insurance coverage for emergency vehicles in North Carolina, South Carolina, and Virginia. It doesn’t offer consumer insurance products.