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 and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 23, 2020

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Things to remember...

  • For households that have more than one car at that particular residence, they likely have a multi-car auto insurance policy
  • Auto insurance companies allow multiple cars to be insured under the same auto insurance policy and even offer a discount for families who choose to do so
  • When you have a multi-car auto insurance policy, all of the policy terms and renewal deadlines are the same for all cars under that insurance policy
  • It is not always automatically cheaper to have all cars in a particular household because the driving records and claims histories of each driver are different
  • Before signing up for a multi-car insurance policy, it is best to shop around and make sure that you are getting the cheapest possible overall auto insurance coverage

If you are curious about a multi-car insurance policy, this could be because there are multiple drivers in your household who require auto insurance coverage.

Auto insurance companies love offering a multi-car insurance policy to families because that means they are guaranteed to have more drivers signed up for their insurance coverage.

As always, the only way to know whether a multi-car insurance policy is the best option for you and your family is to price out specific policies and explore all of your auto insurance options.

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Why Auto Insurance Companies Offer Drivers a Multi-Car Insurance Policy

The reason why so many auto insurance companies are keen to offer a multi-car insurance policy is very simple. They want to get as many cars and drivers signed up for their insurance as possible.

The car insurance market is very competitive, so every new driver than an auto insurer can sign up makes a big difference to their bottom line.

With a multi-car insurance policy, the policyholder has one auto insurance company for multiple vehicles and drivers.

This is a very typical situation for a family with multiple drivers living in the same household. The way that a multi-car insurance policy works is that there is only one policy term for all of the insured cars under that policy.

In addition, the payments for this policy are all tied to the same policyholder, so they will be made on the same date.

If you are interested in a multi-car insurance policy for you and your family, you should check with your current auto insurance company to see if there is a company limit on the number of cars that can be insured under a single policy.

Some auto insurance companies will have a limit of four cars that can be insured as part of a multi-car insurance policy.

The only way to know this information for sure through your current auto insurance provider is to contact them directly at the number that is found on your proof of insurance card.

If you have the direct contact information for your auto insurance agent, you could also speak with him directly about whether a multi-car insurance policy is a possibility for you.

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Reasons Why You Might Want to Consider Multi-Car Insurance Coverage

The top reason for choosing a multi-car insurance policy is that it may be the least expensive option for car insurance for a family with multiple drivers.

For example, if you are a married couple with children, it may be much cheaper to have your teen driver listed as an additional driver on your current auto insurance policy rather than having him or her obtain a separate policy.

In addition to the lower cost that may be associated with a multi-car insurance policy, this type of coverage may also be more convenient for your household.

The reason for this is that all of the insured cars and drivers would be listed under a single policy, so it is much easier to stay on top of payment deadlines and to make any necessary changes to your coverage.

This is a great way to make sure that you do not miss any necessary information that needs to be updated for any of the cars on that specific policy.

Reasons Why You Might Not Want to Consider Multi-Car Insurance Coverage

Even though many auto insurance companies advertise a steep discount for a multi-car insurance policy, it still may not be the right option for you. In some situations, it would actually be cheaper to have a certain driver in your household insured under a separate policy.

For instance, if one member of your household has a poor driving record recently or a very low credit score, he or she may be driving up the cost of insurance for everyone. It may make more financial sense to have a separate auto insurance policy for that driver specifically.

As with any changes to your auto insurance coverage, the only way to really know what is the most cost-effective approach for you and your family is to call and ask for quotes based on your various options.

When you speak with various auto insurance agents, be sure to describe your specific situation so that they have all of the details they need to make the best auto insurance policy recommendations for you.

If you are interested in other ways that you could save money on your auto insurance coverage besides a multi-car insurance policy, there are other options available. One way could be to bundle your auto and homeowner’s insurance policies with the same insurance provider.

Similar to the savings that most families get with a multi-car insurance policy, this type of bundling is attractive to insurance companies because it means that they will get more business from existing customers, which is a great way to improve their bottom line. You could also consider raising your deductible amount.

Final Thoughts on Multi-Car Insurance Coverage

One of the great things about a multi-car insurance policy is that it could save you and your family a lot of money on your car insurance bill.

Auto insurance providers like providing a multi-car insurance policy option to insured drivers because it means that they can grab more business from existing customers and expand the total number of cars insured through their auto insurance coverage. The savings are passed along to the insured driver as an incentive.

Before you decide that a multi-car insurance policy is a good choice for you, you should take the time to price out all of your options for coverage to be sure that it does not make more sense for you to have some cars or drivers insured under a separate auto insurance policy.

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