Save 25% With Multi-Vehicle Discounts
According to a recent report on the best multi-vehicle discounts, policyholders can save up to 25% with Geico, Allstate, and Liberty Mutual.
A multi-vehicle discount is a way for vehicle owners with multiple cars to save on insurance premiums. The discount applies to all vehicles on the policy, so the savings can be significant.
Multi-Vehicle Limits
Most individuals have one car, and most families have two cars. Still, some families have several cars. Each car insurance company sets the number of cars it will insure. The following are the maximum allowed vehicles that can be eligible for multi-vehicle discounts:
- Allstate – 4 cars
- American Family – 4 cars
- Farmers – 5 cars
- Geico – 9 cars
- Liberty Mutual – 4 cars
- Nationwide – 4 cars
- Progressive – 8 cars
- State Farm – 4 cars
- Travelers – 4 cars
- USAA – 6 cars
Most of the companies on the list have a maximum of four cars eligible for a discount. Drivers in households with more than four cars should compare providers that allow for more vehicles.
Multi-Vehicle Premiums and Other Factors
There are several factors that affect car insurance premiums. Those factors include driving records, credit score, and coverage type.
Driving records give insurance providers valuable information about risk. If someone has a history of traffic violations, accidents, or DUIs, they’re statistically more likely to file a claim in the future. So, individuals with poor driving records can expect to pay higher premiums, even if they get a multi-vehicle discount.
Credit scores matter to insurance providers as well. Individuals with lower credit scores are at a higher risk of filing a claim. As a result, those with lower credit scores pay higher premiums. While this practice is banned in some states, most states allow insurance companies to use credit scores in rate calculations.
The type of coverage a policyholder chooses significantly affects premiums. Liability-only coverage is the least expensive. Full coverage is the standard for vehicles 10 years old or newer, and it is more expensive than liability coverage.
Additional coverage options, such as accident forgiveness, GAP coverage, and special equipment coverage, will raise premiums even higher.
Additional Benefits of Multi-Vehicle Policies
The discount for insuring multiple vehicles with the same provider is one of the most obvious perks, but Melanie Musson, a nationally recognized car insurance expert with Clearsurance.com, points out another perk:
“Having one renewal date and one payment for several vehicles simplifies staying current on car insurance.”
It’s important to note that even when vehicles are insured by the same provider, the vehicle owner can decide the level of coverage for each car individually. Not all cars need full coverage, and it’s possible to have one vehicle with liability only coverage and another with full coverage plus add-ons.
More Ways to Save
Multi-vehicle discounts are an easy way to save, but there are many more discounts drivers can take advantage of.
Military discounts are almost always available for those in the military. Often, the discount extends to veterans and retired military.
Bundling discounts work similarly to multi-vehicle discounts and are available for individuals who insure their home and auto through the same provider. Most companies offer this discount, and it can help policyholders save upt o 25%.
Claims-free discounts can help individuals save when they haven’t filed a claim in three years or longer. Those who haven’t filed a claim are more likely to continue not to file claims, thus reducing their risk.
Smart About Saving
Bundling all vehicles in a household under one policy is usually the best option, but there are times when bundling isn’t the best. For example, someone with a collector car may want a specialty insurer for that vehicle. In most cases, though, the smartest way to save is to insure all vehicles with the same provider.
Read Clearsurance.com’s entire report here: Best Multi-Vehicle Car Insurance Discounts (Save 25% With These Companies)