Trying to find insurance for multiple vehicles can be complicated. Perhaps you are brainstorming whether it makes sense to find an individual policy for each vehicle or cover all of your vehicles through one policy. Here's an in-depth look at how multi-car insurance policies work.
A multi-car insurance policy is defined as having more than one car covered on an auto insurance policy. Multi-car policies allow drivers to insure three or four cars under one plan. Only cars, vans, and trucks may be insured through a multi-car insurance policy. You'll have to purchase alternative coverage if you own a motorcycle or RV. Multi-car insurance policies provide similar benefits to traditional car insurance policies and are considered appealing because of the potential discount. Insurers commonly offer a discount if you opt to insure more than one car through your policy. This policy can help you save money on monthly premiums.
There are other benefits to choosing a multi-car insurance policy besides the potential savings. Choosing this type of policy also alleviates a lot of potential stress. All of your important information regarding your policy is available in one place. A multi-car policy is also beneficial because you only have to worry about paying one bill and keeping track of one renewal date. It also provides a layer of comfort.
Multi-car insurance is recommended if multiple cars are stored at the same address. Perhaps you and your loved one drive different cars. Perhaps you have a teenager who has started driving. If you buy them a car, adding it to your auto insurance policy can help you save money. Any cars besides your own that are parked at your address should help you qualify for a multi-car discount. This insurance policy is also recommended for people who enjoy collecting cars. Perhaps you have two special cars in addition to the one you drive regularly, and you are eligible for a multi-car policy discount.
If you purchase a multi-car insurance policy, you're still expected to meet the state's minimum requirements regarding car insurance. Generally, that involves adding liability insurance. Liability insurance protects you if your car injures someone or causes damage, and liability coverage assists with the injured party's medical bills and potential repair costs. Some states may also require you to add uninsured motorist coverage and Personal Injury Protection to your car insurance policy. If you lease a car, your insurer may also mandate that you add collision and comprehensive insurance to your policy.
There are potential complications if you use a vehicle primarily for work-related endeavors. You will likely need to purchase a commercial auto insurance policy to cover that vehicle, even if it is parked at the same address as your other vehicle. Adding a multi-car insurance policy may not benefit you if you stay with someone with a different financial situation or their car is in a different class than yours. It may not benefit you to add the other party to your policy if the value of their vehicle is substantially higher or lower than yours.
While there are many benefits to adding a multi-car insurance policy, it's recommended that you speak with your insurance agent to assess your options. If you have any questions regarding your auto insurance policy, contact the team here at Little & Sons Insurance Services. We will help create the best coverage plan for all your needs.
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