Multi-policy car insurance discounts provide car insurance discounts that can add up to big savings. When you purchase multiple policies from the same insurance provider, this is known as bundling, a practice that can benefit you and your insurer alike. This comprehensive guide to multi-vehicle car insurance policies will explain how these discounts for drivers work, the types of policies that can be bundled, coverage limits and coverage options, and tips for saving on your auto insurance.
What Is a Multi-Policy Car Insurance Discount?
A multi-car insurance policy bundles two or more insurance policies with the same insurance provider.
This practice can benefit you by offering notable savings while also providing added customer retention and reduced administrative work for insurance companies. If you're wondering how to lower your car insurance costs, bundling with multi-policy insurance is a great place to start.
Common Policies You Can Bundle
Typical insurance bundling can include:
- Auto and homeowners insurance
- Auto and renter's insurance
- Auto and life insurance
You can even add boat or motorcycle insurance to your bundle, although not every bundle is created equal in terms of overall savings.
How Much Can You Really Save?
Multi-policy car and home insurance can save you as much as 10 to 25% on insurance costs.
For example, a multi-policy discount at Progressive says new customers can add up to more than 20% savings when you bundle home and auto insurance, while Liberty Mutual notes that average annual savings from bundling home and auto insurance policies surpasses $950.
Depending on your insurance policies, your personal circumstances, and your overall financial goals, your total savings will vary from person to person.
How to Qualify for a Multi-Policy Discount
If you are interested in a car insurance multi-car policy, consider the following tips:
- Start by bundling multiple policies: Whether it's home and auto or auto and life insurance, you must have more than one policy with the same insurance company to qualify.
- Make sure all vehicles share a garage: If your brother lives across town, this will not count for your bundle. If your oldest child, however, drives a car that parks in the same garage or driveway as your other vehicles, that will qualify.
- Verify relationships: Likewise, you can't bundle a policy with your best friend, even if they live next door and share your garage. You must be related to everyone on your bundled policy.
- Talk to your insurance company: A quick call can clarify questions and help you find the best multi-policy discounts for your needs.
All of these simple tips can help you find the best deal for your total insurance needs.
Smart Tips to Maximize Your Bundled Savings
Here are some tips for maximizing your bundled insurance savings:
- Shop around: When you are looking for cheap car insurance, it pays to comparison shop. Different insurance companies have different discounts for bundling, so make sure you take the time to research before making a purchase decision.
- Opt for a higher deductible: The higher your deductible, the less your monthly payment will be. However, make sure you can afford that deductible if you get in an accident.
- Ask: It never hurts to ask for a discount. Contact your insurance company to determine what they offer as far as multi-car discounts or loyalty discounts. If you don't like the answer you receive, keep looking.
Finally, make sure you review your auto insurance policy regularly to ensure you are getting the best possible value and coverage.
Who Should Consider Bundling Insurance Policies?
If you qualify, you should likely consider bundling insurance policies to reduce overall insurance costs. Here are the best audiences for these policies:
- Families: Families are a natural fit for bundled insurance policies as long as you live under the same roof.
- Homeowners: If you own a home and a car, you are also a key demographic for multi-policy discounts. Renters and those who lease cars can also benefit. You can also research the best home insurance companies.
- Multi-car households: If your household is home to more than one car, you should also look into bundled insurance options.
There are, however, a few occasions where bundled insurance might not make the best sense. High-risk drivers might find better rates with a specialty insurer, and the same goes for homeowners in flood zones. If you own luxury or antique cars, you might be better off with a non-bundled policy that offers specific coverage for your specialty vehicles.
Compare Personalized Quotes to Unlock the Best Deal
When you are on the lookout for top-notch insurance policy coverage, comparing personalized insurance quotes is the perfect place to start. At EverQuote, you can get a free custom comparison so you can view bundled policy options side by side.
Insurance options vary a lot by zip code and driver profile, so the ideal way to get the right insurance is to compare your options. Insurance prices can change from day to day, so comparing and shopping often is always a good idea.
Check out EverQuote today to start saving on auto insurance.