Auto insurance is a requirement if you want to drive your car, and the same is true for every driver in your family. Your insurance company will require that everyone in your household who has a drivers license must be listed on an auto insurance policy. Similarly, every car which is registered and being driven needs to be covered insurance.
Whether you have two cars or five cars, having them all on a single policy is not only convenient, but often allows for you to be eligible for multi-car discounts. Separate policies may result in dealing with multiple insurance companies, multiple payments and various payment due dates.
It can all get pretty confusing, but consolidation will help to eliminate all that. With all drivers and cars on one policy, documentation and tracking is more seamless. 
Important: Cars on the policy must belong to the primary policyholder, which is the person listed on the title of the car. If a family car only has one member of the family on the title, they must have their own insurance, and list everyone else who may drive the car on their policy. Therefore you may wish to put all family cars into one primary name (or a husband and wife.)
Time To Reassess Your Car Insurance
We recommend that you reassess your car insurance at least once annually, as changing circumstances may require more coverage – or less coverage. You also may qualify for additional discounts, or new insurance products which have been introduced since your last policy agreement. You may also want to do some checking to see if your current insurance company is still the best fit for your situation and family.
Here are some life events which may affect your car insurance policies.
- Marriage: Most spouses will drive each other’s cars at some point, so you may wish to add one another to each policy.
- New Car: Whether for a growing family, or for a teenager who has just gotten a driver’s license, a new car must be added to your current policy. As stated above, you may wish to keep your teen’s car in your name, to be able to consolidate onto a single policy.
- Teen driver: A new driver in the home, even if they don’t have a car of their own, will need to be added to all policies.
- Buying a home: When you’ve made a new home purchase, your address changes. This type of change must always be reflected on your insurance policies. Many people do not realize that your address will affect your car insurance premium. For instance, you will pay less if you park your car in a suburban garage than on a city street.
Will a Multi-Car Insurance Policy Save You Money?
While your multi-car insurance quote will be higher, it is only to reflect that there are more cars being insured. Because new drivers are considered higher risk, it is typically more economical to fold them into a family policy than to be standalone policy holders.
Be sure to ask your insurance provider if you qualify for any additional discounts, such as good driver discounts – which may help to offset your teenager’s coverage! You should also ask if it will be beneficial to bundle your auto insurance with homeowners insurance, which generates discounts and can save you money for both policies.
If you have recently added a new car to your family and wish to investigate multi-car insurance plans, call Anderson & Associates Insurance Group for information, guidance and a free quote.
