Frequently Asked Questions About Multi-Car Insurance
Posted on: 23 May 2022
Many car owners prefer buying multi-car insurance to cover all their cars instead of a separate policy for each vehicle. Typically, insurance providers will allow their customers to cover up to five cars on one policy. The insurers also offer discounts for every car added to the same policy. Before you get a multi-car insurance policy, here are some questions you should ask your agent.
Why Get a Multi-Car Policy?
Many car owners get multi-car coverage to save money. When you have individual policies for each car, you will pay more than getting a multi-car policy to cover all your vehicles.
Multi-car policies are also convenient because you don't have to manage different auto insurance policies, each with its requirements. A multi-car policy simplifies policy maintenance. Additionally, this policy allows you to stack coverage. This means you get to double your coverage limit.
Who Can Get a Multi-Car Insurance Policy?
If you reside in a household with more than one car, you qualify for a multi-car policy. Some people who benefit are couples with several cars, families with multiple cars, and friends sharing a house, each with their own vehicle.
Many insurers insist that cars registered in a multi-car insurance policy should be registered at the same address. Some insurers allow exceptions for people living at separate addresses. For example, if your adult child lives at the university campus.
What Is Involved in Getting a Multi-Car Insurance Policy?
When seeking a multi-car insurance policy, inquire from your insurance company whether it is permissible. Your insurer will ask you for the vehicle identification number (VIN), the model of your car, and the registration details.
Some insurance companies might require that you register all your vehicles at the same address. Also, you may be limited on the number of cars that can be registered on one policy. Make sure you ask your car insurance agent to explain the terms and conditions of a multi-car insurance policy.
When Should You Not Get Multi-Car Insurance?
One of the instances when you shouldn't choose multi-car insurance is if you have teen drivers at home. Insurers consider teenagers as high-risk drivers. Therefore, it will be more expensive to add a teen driver to your multi-car policy. In this case, you should insure teen drivers separately.
If you have an unused car, it makes more sense to leave it off the multi-car insurance. Instead, get this car the necessary protection. For example, you could get comprehensive coverage for compensation if it is stolen.
Contact an insurance agent for more information.
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