A multi-car insurance policy only means that you have two or more vehicles in your policy. If you have more than one vehicle in the same direction, you can add them all to your policy. Some insurance companies may indicate that they must have a garage at the same address, but an actual garage is not required. If you have more than one car, you can insure both with two different policies.
And in some cases, that might make sense. For example, suppose you only plan to drive your second vehicle from time to time. In that case, it might be more cost-effective to buy a policy that allows you to pay by the mile than to add your second car to your current policy. Learn about car insurance for everyday trips and vice versa.
Every company is different when it comes to how many cars you can insure with a single policy. Many companies can insure up to four vehicles on one policy before needing a second auto insurance policy. Some companies can insure more than four vehicles on a single policy. Yes, you can have two cars with two different insurance companies.
However, many providers recommend covering all your vehicles with the same insurance company to receive a discount for multiple vehicles. However, you may need two cars with two different insurance companies if you have extenuating circumstances. As mentioned above, you will have two car insurance policies in your name if you have two car insurance policies for one car or two for two different cars. An insurance company may also try to recover the money from their other insurer during the behind-the-scenes claim process, which could delay your payment.
Many insurance companies offer insurance discounts for multiple vehicles, which can help you save money on your car insurance premium. Buying insurance for a second car generally doesn't cost as much as buying a policy for the first, thanks to multi-vehicle discounts, special auto insurance policies, and usage-based auto insurance options. You may need to seek coverage from two different providers if you have a classic or exotic car that needs its own specialized insurance. You can also have two cars with two different insurance companies if you're just married or divorced.
For example, if you want to insure a motorcycle, you must purchase a separate motorcycle insurance policy, and you can't add it as a secondary vehicle to your personal auto policy. Combining auto insurance plans into one multi-car insurance policy can provide better coverage for all the cars in your household, while multi-vehicle discounts help offset the costs of that better coverage. However, filing two claims for the same damage to both insurance companies could constitute insurance fraud, which is illegal. Before trying to get two car insurance policies for any reason, make sure that both companies allow it.
Fortunately, this isn't usually the case, as a policy with the right provider can typically meet all your car insurance needs. This is why each person needs their own proof of insurance, and you can't have a car insurance policy in your name for someone else's car. And if you have a classic car, a classic car insurance policy may offer specialized coverages that aren't available with standard car insurance. One advantage of a multi-vehicle policy is that most providers offer discounts, generally known as multi-car or multi-vehicle discounts, to insure two or more cars with the same policy.
A multi-car insurance policy could be beneficial in situations where adult children have moved home to save money; consolidating policies rather than having each adult pay for a different insurance plan is an effective way to reduce costs. The price you'll pay to buy insurance for a second car depends on several factors, such as where you live, the type of car you have, your driving history, the types of car insurance coverage you buy, and more.