Auto Insurance: Who's Covered And Why It Matters

Auto insurance is important for protecting you from financial losses in the event of an accident, theft, or natural disaster, and it is a requirement for drivers in most states. While there is no federal law or set limit on the number of vehicles or people you can have on your auto insurance, the number of drivers you can insure on your policy depends on your insurance company. Most companies allow you to insure up to four or five cars and drivers on a single policy. If you exceed this number, you may need to purchase a second policy. Additionally, your insurance company may require you to list all household members on your policy, even if they don't drive your vehicle.

Multi-car policies can help you save money on premiums

Multi-car insurance policies are a great way to save money on your car insurance premiums. Insuring two or more cars with one insurance company on a single multi-car policy is usually cheaper than insuring multiple cars on separate policies. The savings can be as much as 25% of your premium, although this varies by company.

Most insurance companies allow you to insure up to four or five cars on a single policy. If you have more than five cars, you may need to take out an additional insurance policy. The exact number of cars you can insure on one policy will depend on the company and your state.

Multi-car policies also come with the added benefit of convenience. You only have to worry about one renewal date and one bill. This can help you stay organised and make it easier to keep track of any increases in your premium.

In addition to the number of cars, insurance companies may also have requirements for the number of drivers on a multi-car policy. Some companies require that all drivers live at the same address, while others will give a discount as long as the drivers live together.

If you're thinking of getting a multi-car insurance policy, be sure to shop around and compare quotes from multiple companies. This will help you find the best policy for your needs at the best price.

You only need to worry about one renewal date

Having multiple vehicles on a single insurance policy can be a great way to save money on your car insurance premiums. Usually, you can save on your premiums by insuring two cars with one insurance company on one multi-car policy, rather than insuring multiple cars on separate policies.

One of the key benefits of having multiple vehicles on a single insurance policy is that you only need to worry about one renewal date. This can help you stay organised and make things simpler, as you only have one recurring payment date for multiple vehicles. Having one renewal date also makes it easier to keep track of increases in your premiums and helps you know if it's time to switch car insurance companies to save money.

The number of vehicles you can include on a single insurance policy depends on the state you live in and your insurance company's rules. Most insurance companies allow you to insure four or five cars on the same policy, and you can often receive a discount for insuring more than one car. However, if you have more than five cars to insure, you may need to take out an additional insurance policy, either with your current insurer or a different insurer.

It's important to note that the coverages on a multi-car insurance policy don't have to be the same for each vehicle. Some coverages are set per policy and apply to all vehicles or drivers on the policy, such as bodily injury liability and property damage liability coverages. Other coverages can be adjusted per vehicle, like comprehensive and collision coverages or alternate transportation coverage.

In addition to saving money on premiums, a multi-car policy can also provide the benefit of stacking your coverage in some states. This means that you can increase your coverage amounts on one policy and benefit from the combined coverage amount. For example, if you and your spouse share a multi-car policy and select a per-person and per-accident limit for uninsured motorist bodily injury coverage, you may be able to benefit from the full combined coverage amount if you have stacked coverage and are in an accident with an uninsured motorist.

You can stack your coverage (depending on your state)

Stacking your auto insurance coverage can be a very beneficial option to consider, especially if you live with family or relatives. It can also cover you if you are injured while riding a motorcycle.

Stacking your coverage means that you can combine the UM coverage you have on each vehicle you own, thereby increasing the payment limits of your insurance. This gives you added protection if you are injured in a car accident and the at-fault driver has little or no insurance. Stacking your insurance will enable you to increase your coverage amounts on one policy and benefit from the combined coverage amount.

For example, let's say you and your spouse share a multi-car insurance policy. You select a $25,000 per person limit and $50,000 per accident of uninsured motorist bodily injury coverage for you and the same for your spouse, and you live in a state that allows you to stack these coverages. For an additional premium, if you're in an accident with an uninsured motorist, you might be able to benefit from the full combined coverage amount of $50,000 per person and $100,000 per accident if you have stacked coverage.

You can stack your coverage in two ways: vertically, within one policy, or horizontally, across multiple policies. For instance, if your household owns three vehicles, each with its own policy and a UM and UIM limit of $15,000/$30,000, you can decide to stack the policy on each car, increasing the limits. So, if someone in your household gets into an accident with an uninsured driver, instead of a maximum of $30,000, that person can claim up to $90,000.

However, stacked insurance is not available in all states, and there are certain situations in which UIM/UM insurance cannot be stacked, such as waiving your right to UIM/UM insurance. If you use your vehicle for business purposes, you may also have an issue stacking your insurance.

You can add a driver to your policy if they drive your car more than 10-15 times a year

It's a good idea to add a driver to your insurance policy if they drive your car more than 10-15 times a year. This is because, in the event of an accident, your insurance company is more likely to cover the damage if the driver is listed on your policy. If they are not listed, you may not have coverage for any accidents they have.

Most insurance companies allow you to add another driver to your car insurance policy, and some may even require you to do so if the person drives your insured car regularly or shares the same permanent residence as you. If the additional driver lives at your address, insurance companies will typically require you to add them to your policy. This applies to roommates, unmarried couples, and family members such as spouses, partners, and children. If the driver does not live with you, you should still add them to your policy if they drive your car regularly.

When adding a driver to your insurance policy, you will usually need to provide their full name, date of birth, driving history, license information, and vehicle identification number (VIN) if you plan to share a policy that covers both of your vehicles.

It's worth noting that adding a driver to your policy may affect your premium, but this is not always the case. The cost of adding a driver depends on various factors, such as their age, driving history, and motor vehicle record. Adding an inexperienced or high-risk driver may increase your premium, while adding a low-risk driver may make your insurance more affordable.

You can add a driver to your policy if they live with you

If you're wondering how many people you can have on your auto insurance, the answer is that it depends on a few factors. Most insurance companies allow you to add multiple drivers to your policy, especially if they live with you and drive your car regularly. This is known as a multi-car or multi-driver policy.

When to Add a Driver to Your Policy

You should typically include licensed drivers who live in your household or regularly drive your vehicle on your car insurance policy. This could include:

• A partner who moves in
• Teenage children who obtain their driver's licenses
• College-aged children who drive your vehicle when they return home for the holidays
• Roommates
• Friends who drive your car regularly

How to Add a Driver to Your Policy

To add a driver to your insurance policy, you can either call your insurance company or log in to your account online. You will typically need to provide the following information about the additional driver:

• Full name
• Date of birth
• Driving history
• License information
• Vehicle Identification Number (VIN) if you plan to share a policy covering both your vehicles

Cost of Adding a Driver to Your Policy

Adding a driver to your insurance policy may or may not affect your premium. The cost of adding a driver depends on various factors, such as their age, driving history, type of vehicle, and other details. Adding an inexperienced or high-risk driver can increase your premium, while adding an experienced driver with a clean record may make your premium more affordable.

Benefits of a Multi-Car Policy

In addition to providing coverage for multiple drivers, a multi-car policy can offer several benefits:

• Savings on premiums: Insuring multiple cars with one insurance company on a multi-car policy can be more cost-effective than insuring them separately.
• Simplified renewal process: With multiple vehicles on one policy, you only need to worry about a single renewal date and payment.
• Stacked coverage (in certain states): In some states, you may be able to combine coverage amounts on a multi-car policy, increasing your overall protection.

Frequently asked questions