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If you have two or more cars in your household, then a multi-car family insurance policy will save you money. Insuring all your vehicles on one policy should be cheaper than taking out separate coverage for each car.
However, family coverage has some additional benefits on top of multiple vehicle discounts. What are they?
1. Single Deductibles
If you insure your cars individually, then you have to pay separate deductibles if you have an accident. This applies even if your family owns multiple cars which are all damaged in the same event.
For example, if a tree falls in a storm and lands on cars in your driveway, then your family will pay a deductible for every car that is damaged if you have separate policies. Each driver will have to find the money to cover their deductible costs.
Family car coverage could save you more money here. These policies usually come with one-deductible options in multi-car accidents. So, if your insurance covers three cars, and they are all damaged by the falling tree, then you would pay one deductible rather than three.
2. Combined Coverage
If you have an auto accident, then you rely on your insurance company to pay for your repairs. However, insurers pay a set dollar limit. If your repairs cost more than your insured sum, then you pay shortfall costs.
Some family multi-car policies combine coverage amounts across all the vehicles in your policy. So, if the repair costs for one vehicle are higher than its insured sum, then you might be able to use some of the coverage on other cars to cover the shortfall. You won't be left with out-of-pocket costs.
3. Combined Discounts
Auto insurers give discounts to people who demonstrate certain characteristics or who have extra driving skills. For example, a student who gets good grades might get a discounted insurance rate. Insurers rate academic achievement as a risk-mitigating factor for young people.
Or, you might get a discount if you take a defensive driving course. These courses teach you how to be a safer driver in high-risk conditions. They reduce the chances of you having a bad accident.
Some family car insurers apply discounts across the whole policy. They don't just apply it to the vehicle of the person who gets the discount.
This can be especially useful if you are insuring one of your children. Their age and driving inexperience typically increase their insurance costs. If you, or they, can use whole-policy discounts, then your overall costs will be lower.
To learn more, contact a car insurance agent.Share