Getting car insurance can seem like a challenge, particularly since every driver and vehicle is unique. Therefore, you have to get the policy that is right for you in order to maximize your benefits. This is difficult enough for one vehicle, but when it comes to insuring multiple vehicles, you will likely feel a bit conflicted about how you can possibly juggle multiple policies. The good news is, you might not have to.
Suppose that your teenager has just gotten their first car. Or, perhaps you and your spouse are about to become a two-vehicle household. In general, it’s usually cheaper to insure two or more vehicles on the same policy, better known as a multi-vehicle plan. This is because most insurance companies offer significant discounts for multi-car policies.
What Affects Car Insurance Rates?
When you apply for auto insurance, your insurer wants to gauge how likely you are to file a claim on your policy. If you have a higher risk of doing so, you are likely to pay more for your coverage. Some of the factors that most auto insurers use to calculate your risk rating include:
- Vehicle age, model, and safety rating
- Credit score
- Driving history
Adding a new vehicle or a new driver (particularly a teen driver) to your policy will increase your risk level to the insurer. Therefore, you are likely to see an increase in your premiums. However, it is often much cheaper to expand your existing plan into a multi-vehicle policy, as opposed to simply buying separate coverage altogether.
There are ways to save on your insurance premiums, even when you have multiple vehicles. Some of the ways to do so include:
- Driving less expensive cars.
- Taking defensive driving courses.
- Raising your policy deductibles (although this will mean paying more out of pocket following an accident).
- Letting your agent help you customize your coverage limits to ensure you receive an optimized balance of coverage.
Plus, you can often qualify for multi-vehicle discounts by enrolling in this particular plan. Furthermore, additional discounts might include:
- Good driver discounts
- Bundling home and auto insurance
- Good student discounts
- Student away discounts
- Low-mileage discounts
Each situation is different, however. Sometimes, you might actually save by insuring two vehicles separately, even though it will come with the added stress of paying two bills. With the help of your independent insurance agent, you’ll be able to compare the costs of a wide variety of plans to find the combination of benefits that offer you the most affordability.
Also Read: Do Car Insurance Rates Ever Go Down?
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