Multi-vehicle insurance can be a good solution if you need to insure multiple cars in your household. Many car insurance companies offer discounts to customers who insure more than one vehicle on the same policy. Because of that, multi-vehicle insurance may be cheaper than insuring each vehicle on a separate policy.
Additionally, multi-vehicle insurance can be convenient for families with more than one car. You’ll pay a combined insurance premium for both vehicles and it can be easier to manage your policy. You’ll only work with one insurance company if either vehicle is involved in an accident or gets damaged in a covered claim.
This comprehensive guide will help you understand how multi-vehicle car insurance works and how much money you could save by combining your auto insurance policies.
CarInsurance.com Insights: Save by combining your policies
- You can save 10-25% with a multi-car policy.
- GEICO, State Farm and Nationwide often have the cheapest multi-car rates.
- GEICO offers up to 25% off when you insure more than one vehicle.
- Most insurance companies allow you to insure four to six cars on a single policy.
- The average premium for two cars is $1,400 to $1,600 annually.
- You can choose different coverages for each vehicle on the policy.
- Policy bundling and safe driver discounts can reduce your rate even more.
How much is car insurance for two cars per month?
The national average cost of car insurance for two cars is $158 per month for full coverage. The average premium for liability insurance with coverage limits of 50/100/50 is $54 per month. The average multi-car policy for state minimum liability insurance is $42 per month.
Multi-vehicle car insurance premiums are different for every driver. Some of the factors that can affect the cost of insurance for two vehicles are:
- Location
- Vehicle type and age
- Annual mileage
- Driver age
- Coverage limits
- Deductibles
Compare multi-car insurance costs and discounts by company
Multi-car insurance costs and discounts vary by insurance company. GEICO, Nationwide and State Farm offer the cheapest monthly premiums for multi-car insurance policies at $117, $118 and $119 per month, respectively.
The following table shows the average monthly premium for two vehicles from some top insurers and the advertised multi-car discount.
| Insurance company | Average monthly premium for a multi-car policy |
|---|---|
| GEICO | $117 |
| Progressive | $130 |
| Allstate | $140 |
| State Farm | $119 |
| Farmers | $122 |
| Travelers | $138 |
| Nationwide | $118 |
Best multi-car insurance providers in 2025
GEICO, State Farm and Nationwide are among the best multi-car insurance providers for 2025, based on CarInsurance.com’s analysis. Learn more about each company in the table below.
| Insurance company | Multi-car discount % | J.D. Power rating | Insurer offerings |
|---|---|---|---|
| GEICO | Up to 25% | 660/1,000 | Policy bundling, military discount, 24/7 customer service, live chat |
| State Farm | Not disclosed | 699/1,000 | Policy bundling, Steer Clear and Drive Safe & Save telematics programs, rideshare insurance |
| Nationwide | Not disclosed | 671/1,000 | Policy bundling, SmartRide and SmartMiles telematics programs, accident forgiveness, vanishing deductible |
Expert recommendations for adding drivers to your policy
Adding drivers to your car insurance policy can be beneficial in certain situations, but experts say it’s essential to consider how it might affect your rate.
“Adding a spouse to your car insurance policy may not change your premium by much, unless they have a particularly bad driving record. Adding kids, however, is a different story,” says Rami Sneineh, a licensed insurance producer and vice president of Insurance Navy.
If you’re considering adding a young driver to your auto insurance, remember that teen drivers are very expensive to insure.
“When you add a teen driver, your auto insurance rate can increase as much as 50%. Teenagers are considered to be high-risk drivers, so insurance companies typically raise premiums for parents to offset the increased potential for a claim,” Sneineh says.
Another consideration is whether your insurance company requires all drivers in your household to be listed on your policy, even if they have their own insurance and vehicle. In this case, you must add all drivers to your policy, including teens, to avoid potential consequences like denied claims or policy cancellation.
How to get a multi-car insurance quote in 5 steps
Here are the steps you should follow to get a quote for multi-car insurance:
- Gather vehicle information: Collect information about the vehicles you want to insure, including the VIN, make and model, year and mileage. See if the car has an anti-theft device or other safety features that might help you earn a discount.
- Research insurance companies: Research the best insurance companies based on your location, coverage needs and preferences. It can also be helpful to read customer reviews to see what real drivers think about the company.
- Choose your coverages: Decide what types of coverage you want and how much coverage is needed for each vehicle. Most insurers allow you to choose different coverage types and amounts for each car insured on the policy.
- Get quotes: Get personalized multi-car insurance rate quotes from several car insurance carriers. If you get a quote online, you can add a second vehicle to your quoted policy. The final quote you receive will be for both cars.
- Finalize the policy: Compare the quotes to find the most affordable policy with the best coverage for both cars. When you’re ready to finalize the policy, you can pay the first month’s premium and your coverage will begin. Many insurers give you a small discount if you pay the annual premium upfront in full.
Pros and cons: Multi-car policy vs. separate policies
When choosing between a multi-car insurance policy and separate policies, it’s essential to consider the pros and cons. Here’s what you need to know about a multi-car cover vs. an individual policy.
| Multi-car policy | Individual policy |
|---|---|
Pros:
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Pros:
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Cons:
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Cons:
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Save more by adding a teen driver to a multi-car insurance policy
Multi-car insurance policies can be a more cost-effective option for households with teen drivers. Often, insuring your teen on a multi-vehicle insurance policy is cheaper than purchasing a separate policy.
Here’s a real-life cost breakdown of how much money a family in Florida could save if they insured a 16-year-old male driver on a parents’ policy:
- Premium for a 16-year-old on his own policy: $9,456 per year
- His parents’ insurance premium: $2,476 per year
- The family’s total insurance premiums: $11,932 per year
- Cost of adding the teen to his parents’ policy: $3,483 per year
When the teen is insured on his parents’ policy, that’s a total savings of $8,449 per year.
How to add a car to your insurance policy
If you want to add a car to your insurance policy, have the following information ready when you contact your insurer:
- Your policy number
- Make, model and year of the vehicle(s) you’re adding to your insurance
- Vehicle Identification Numbers (VIN) of all cars to be listed on the policy
- Odometer reading on the vehicle(s) you’re adding
- The name(s), date(s) of birth and driver’s license number(s) of any driver you want to add to your policy
Expert’s take: What is the cheapest way to insure two or more cars?
For many drivers, purchasing a multi-car insurance policy is the cheapest way to insure two or more cars.
“Most insurers offer a significant discount when you bundle multiple vehicles on one policy. In some cases, you could save as much as 10-25%. Multi-car policies also simplify billing and paperwork, which can make your life easier,” says Yosi Yahoudai, co-founder and managing partner at Los Angeles-based J&Y Law.
When you insure two vehicles on two separate car insurance policies, you’ll miss out on this opportunity to save. And unlike many other car insurance discounts, it’s automatic savings — you don’t have to complete a defensive driving course or participate in a telematics program to earn the discount.
However, every driver has different auto insurance needs. Experts encourage drivers to assess their own situation to figure out if a multi-car policy is the best way to get the cheapest coverage.
“For example, if one driver has a poor driving record or a high-risk vehicle, like a luxury sports car, it might actually be more cost-effective to separate the vehicles onto their own policies with different insurers,” Yahoudai adds.
To determine whether a multi-car insurance policy or individual policies will be cheaper, it’s essential to compare quotes for both policy types. As you compare quotes, also pay attention to the other discounts the insurer offers. You could save even more if you can take advantage of additional discounts, like policy bundling or insuring a new vehicle.
Frequently Asked Questions: Multi-car insurance
What is multi-car insurance?
A multi-car policy is one where two or more vehicles are insured on the same auto insurance policy.
How does multi-car insurance work?
Multi-car insurance works the same as regular car insurance. You can choose coverages for each vehicle individually and file claims if either car is involved in an accident. Most insurance companies offer discounts to drivers who insure more than one vehicle, which can be cheaper than buying individual policies.
How many cars can you have on your insurance?
Insurance companies typically allow between four and six vehicles to be insured on a multi-car policy.
Can I insure multiple cars at different addresses?
In most cases, you can only insure multiple vehicles if they’re parked at the same address. However, insurance companies usually make exceptions for students who attend college away from home.
Which companies offer the best multi-car discount?
Some of the best insurance companies for multi-car insurance are GEICO, State Farm and Nationwide. These insurers offer generous multi-car discounts and other savings opportunities that could help you get the cheapest rate.
Can I get car insurance from different companies?
You can have car insurance on different vehicles with different insurance companies, but it’s not always advisable. You’ll probably pay less to insure both cars on the same policy with the same insurance company. It’ll also be easier to manage your policy when you work with a single insurer.
On the other hand, it might make sense to use different insurance companies if one driver in the household has a poor driving record, or if you need to insure vehicles stored in different states.
Final thoughts
Multi-car insurance policies can be a more affordable way to insure two or more vehicles in your household. You can combine a multi-car discount with other savings opportunities for an even lower premium.
However, a multi-car insurance policy isn’t guaranteed to be the cheapest option for everyone. In some cases, it might be less expensive to purchase individual policies. This is often the case when one driver has a poor driving record, low credit score or lengthy claim history, which would drive up the premium for both vehicles.
Sources
J.D.Power “ Despite Slowing Rate of Increase in Auto Insurance Pricing, Most Customers Still Shopping, J.D. Power Finds.” Accessed September 2025.
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