Multi-Car Discounts

As you may know most insurance companies offer a discount for having more than one car on an auto policy.  Sometimes as much as 20% to 25% less if you had them alone on two separate policies.  But what you might not know is depending on the car  you are rated on as a primary driver can make a substantial difference in price as well.  This is especially true for drivers who don’t have many years of driving experience and or have points on their records. 

The scenario that makes having two cars on one policy cheaper than just insuring one car alone is like this.  Say you are 25 or whatever age with points on your driving record.  You have just upgraded from your old Honda Civic to a new Ford Explorer  and you need full coverage (other than collision and collision coverage).  If you just insure the New Ford Explorer the price might be $1800 a year.  But if you insured the old Honda Civic (liability only and as you primary vehicle) along with the new Ford Explorer the price might be $1500 a year; a $300 savings per year. Yes this happens often because of the way actuaries rate the scenarios.

A lot of people with high-end vehicles experience the same kind of discount.  I’ve had people with Porsches and Ferraris add on a family sedan to their policy, make the family sedan their primary vehicle and save thousands a year.  Not only do they receive the multi-car discount but also the reduction in the rating of the high-end vehicle now bieng rated as a pleasure vehicle. The expensive car is no longer rated as the primary vehicle; the family sedan is, thus the reduction in what you are going to have to pay.  This is all done by what you dictate to the insurance company and again they have to listen to what you say.

Keep this in mind if these scenarios may apply to you.   It could save you some major money.  This  is a part of financial wellness.

Next in the Series are 3.0 Full Time Student and Professional Discounts

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