Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Aug 18, 2021

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Here's what you need to know...

  • If you buy a multi-car policy, you’ll have the same policy number and term for each vehicle
  • When you buy a multi-car policy, you have the option to customize the coverage that you carry on each vehicle
  • Some companies do require you to buy the same limits of liability on each car covered under the policy
  • One of the benefits is a multi-car discount on each vehicle that you insure with total savings as high as 20 percent

When you’re buying auto insurance, one of your first priorities is to find a company that offers the best insurance rates. Finding the right coverage for the right cost is the reason you should comparison shop. Once you’ve found the best premium quote, you can decide which company deserves your business.

While it’s not ideal, some consumers will buy insurance for each of their vehicles through different carriers. When you’re getting estimates for single-car policies, it might appear that the cheapest option is to buy separate policies.

What you might not know is that you get more discounts for having multi-car insurance. Here’s what you should know about the pros and cons of multi-car insurance policies.

It’s never too late to comparison shop by entering your zip code into our FREE tool!

What is the difference between a single-car and multi-car policy?


Auto insurance carriers all carry their own types of products. State regulators might dictate what a company can and can’t sell.

But most companies are free to decide if they want to sell single-car or multi-car policies. Single-car policies cover only one vehicle, and multi-car policies cover two to five cars on the same policy.

Just because a company offers single-car policies doesn’t mean that you can’t insure more than one car with your carrier.

With a single-car policy for two cars, you will have a different term, a different policy number, and different liability limits. With a multi-car policy, the term, policy number, and liability limits are the same for each covered car.

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What are some of the advantages of buying a multi-car policy?

A majority of the leading auto insurers offer the option to buy a multi-vehicle policy, but there are still a few major insurance providers that only sell single-car policies.

If you’re comparing premiums, it can help to learn the advantages of having a multi-car policy. Here are just some of the major benefits:

  • You only have to contact one insurance company to make changes when you move or change bank accounts.
  • You don’t have to worry about remembering different terms and conditions through different carriers.
  • You will only have a single renewal date every six to 12 months.
  • When you add a vehicle to the policy, you only need to provide the vehicle information instead of starting a new policy.
  • You only have to worry about remembering one payment due date.
  • Multi-car discounts will automatically be applied to each car.

What are some of the drawbacks of carrying multi-car insurance?


It doesn’t always make sense to carry insurance on all of your vehicles under the same policy. Every carrier has their own underwriting guidelines, but most of the time carriers with single-car policies offer more flexibility.

Here are some of the drawbacks that you should keep in mind:

  • The cars must all be registered in the same name.
  • The cars must all be parked at the same address.
  • Some companies require the policyholder to carry the same liability limits on each car listed on a multi-vehicle policy.
  • Payment for each car is due at once if you like to pay for your premiums all at once.
  • If you own a rare vehicle, it might be more cost effective to insure the vehicle through a specialty provider.

What is a multi-car discount?

If you own more than one vehicle, it is in your best interest to insur all of your private passenger vehicles with the same carrier.

When you do this, the carrier will offer you a multi-car discount. The multi-car discount is a savings that’s applied to each of the cars for as long as you have two or more cars with active auto insurance coverage.

Every company sets their own rates and decides your discounts, which is dependent on your driving record, rating factors, your limits of liability, and other variables. On average, most consumers save from five to 15 percent off of your premiums on each car.

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Can you get other discounts on a multi-car insurance policy?


In most cases, policyholders will save money by insuring all of their household cars with the same carrier.

While the most popular discount that’s offered under a multi-vehicle policy is the multi-car discount, you may also qualify for other savings.

Here are some of the other types of discounts you should look for:

  • Multi-policy Discount – Savings for buying car insurance and another line of insurance through the same carrier
  • Low-mileage Discount – Savings for vehicles that are driven less than 3000 miles per year
  • Good Student Discount – Savings for students 25 and younger who are in school full-time and earn good grades
  • Mature Driver Discount – Savings for senior drivers 55 and older who have completed safe driver training
  • Good Credit Discount – Savings for policyholders and additional named insureds who have a good credit-based insurance score (only in states where credit can be used to rate insurance)
  • Safe driving discounts – Keep a clean driving record and get a discount on your auto insurance
  • Defensive driving discount – Get a discount for taking a defensive driving course and improving your driving skills
  • Military discount – Active-duty members of the military are entitled to a discount from many providers

Additional discounts may be available, depending on your insurance provider. If you are ready to compare insurance premiums, it is time to learn about brokerage-style online quoting tools. With these Internet tools, you can get instant auto insurance quotes for both single-car and multi-car policies from a variety of auto insurance companies.

Enter your zip code into our FREE rate comparison took then review the premiums through each of the leading insurers that do business in your state.