How to Get a Multiple Car Insurance Discount
|
|
You may be wondering if it is in your best interest to get a multiple car insurance discount on your car insurance. You may have thought about it but did not take any action toward finding out the details. How one goes through the process, whether all people qualify, and whether obtaining a multiple car insurance discount--can be complicated. This article will answer these questions for you.
1. Background
Why do companies offer multiple car insurance? As with many things in the business world, the basic idea is to save money.
Insurance companies did not start out desiring to save you money. They were looking for ways to cut their own costs. However, in the end, you save money, too, because the reduced cost is ultimately passed on to you, the customer.
2. How You and Your Insurance Company Saves
It may seem illogical that a company would offer a discount simply because you have more than one vehicle insured with them. However, the key is that insurance companies save a lot of time processing paperwork when they include all of your vehicles on one policy. Paperwork includes writing the policy and billing. Saving time translates into saving money.
Look at multiple car insurance discounts as a saving device. For example, if your insurance company insures three vehicles of yours together, the company only has to issue one policy every year for each vehicle, and they only have to bill once, whether you pay quarterly, bi-yearly, or once a year. In contrast, if you insured each vehicle separately, the paperwork, preparation time, and mailing costs for the company is three times the amount of time and money for these activities.
3. How to Qualify for a Multiple Car Insurance Discount
An “automatic” for obtaining a multiple car insurance discount is for you to own more than one vehicle. In addition, a multiple car insurance discount may apply if you have someone living with you. This includes a spouse or “significant other”. This also may apply if you live with other relatives who drive. You may be eligible for a multiple car discount also if you have children who drive, even if they do not live with you.
4. Multiple Car Insurance can Include Other Vehicles
You may also be eligible for a multi-vehicle discount if you own a boat, motorcycle, recreational vehicle, or other insurable vehicle. It is not automatic because your insurance company may not insure vehicles other than passenger cars and trucks, but it is definitely something to look into.
5. Typical Discount Rates for Multiple Car Insurance
Typically, multi-vehicle discounts are 10-15% off the total policy costs. Some companies offer a straight discount percentage, while others may offer you something like a 10% discount the first year and 5% every year thereafter.
6. Best Strategy
The best strategy is to contact your insurance agent to find out whether they offer a multiple car insurance discount and what will qualify you for this discount. Call and inquire. It will cost you nothing but a little of your time, and the call may end up saving you money every year.
