TL;DR: Owning multiple cars can be expensive, but you can save money by combining vehicles on one insurance policy (to get multi-car discounts), adjusting coverage on each car, and cutting other car-related expenses. For example, most insurers offer a multi-car discount when you insure more than one car with them, which can reduce each car’s premium by up to 20–25%. You might also qualify for a low-mileage or usage-based discount if one car is driven sparingly, and you can drop costly collision coverage on an older, paid-off car to lower your insurance costs. Beyond insurance, consider refinancing high-interest car loans, carpooling or sharing rides to reduce fuel and wear, doing basic maintenance yourself to avoid mechanic bills, and using your most fuel-efficient car whenever possible. For personalized advice on multi-car savings, call Insure on the Spot at 773-202-5060.
Owning more than one vehicle means you have multiple sets of expenses from insurance premiums to gas, maintenance, and loan payments on each car. A relief is that there are many strategies to trim these costs. Below, we answer common questions on how to save money when you have two or more cars in your household.
Will I get a discount for insuring multiple cars with the same company?
Almost all insurance companies offer a multi-car discount if you insure more than one vehicle on the same policy. This means you’ll pay less for two cars on one policy than you would if each car had its own separate policy. Insurers encourage customers to consolidate vehicles under one account by reducing the per-vehicle premium. In fact, a multi-car discount can often save you around 10% to 25% off each car’s insurance rate. For example, instead of your insurance doubling when you add a second car, the total premium might only increase by about 50–75% in many cases (thanks to the discount).
However, the exact savings vary by company. Some advertise up to a 20% or 25% discount, while others may offer a smaller percentage. It’s recommended to ask your insurer what multi-vehicle discount they provide, or even shop around and compare quotes from different companies. Not all insurers give the same discount for multiple cars, so compare rates or ask your current provider if they can match a competitor’s multi-car discount. Most of the time, combining your cars on one policy is a quick way to save money and simplify your bills.
Also, keep in mind that typically all cars must be registered to family members in the same household to qualify for a single multi-car policy. Many companies can insure up to four or five vehicles on one personal policy, so unless you have an unusually large collection, you can likely insure all your household’s cars together and get the discount.
What if one of my cars is rarely driven? Can I get a low-mileage discount?
Insurance premiums are partly based on how much you drive, so more miles driven means higher risk of an accident. So, if you have a vehicle that’s rarely driven (for example, under about 7,500 miles per year), ask your insurer about a low-mileage discount or a usage-based insurance. In order to qualify, you may have to submit periodic odometer readings or use a telematics app/device to verify the low usage. Some companies consider a car “low annual mileage” if it’s below a certain threshold (around 7,000–7,500 miles a year), and might cut that car’s insurance cost significantly.
There’s another option too. You can get usage-based insurance (also called pay-per-mile programs) for the seldom-used vehicle. With usage-based coverage, your premium is directly tied to how much (or how well) you drive. This is ideal for families where one car is only used occasionally, for example, a weekend car or spare vehicle. By enrolling that car in a pay-per-mile or telematics program, you could potentially save a lot compared to insuring it as if it were a daily driver. The key is to communicate your vehicle’s actual usage to your insurance company. If you can demonstrate that one car truly has very low annual mileage, you may be “rewarded” with lower rates on that vehicle, which helps bring down the total cost of owning multiple cars.
Should I carry only liability insurance on an older or second car?
If you have an older car that is fully paid off and not worth a lot, the smart way to save money is switching to liability-only coverage. Liability insurance (which covers damage or injuries you cause to others) is required by law for any car you drive, but comprehensive and collision coverage on your own car are optional. On a newer or financed vehicle, you typically carry collision and comprehensive to protect its value (and lenders often require it). However, once a car’s value has dropped sufficiently, paying extra for full coverage may not be cost-effective.
By removing collision and comprehensive, you can reduce that car’s premium by a lot. This does mean you won’t get an insurance payout for damage to your own vehicle if you’re in an accident or if something like theft or hail damage occurs, you would have to pay out-of-pocket to repair or replace the car in those cases.
Here’s a tip: If your car is only worth a few thousand dollars (or less than 10 times the annual cost of adding collision and comp coverage), consider dropping those coverages. Going liability-only on an extra car is a trade-off between risk and savings. It can cut your insurance expenses substantially, as long as you’re comfortable covering that car’s damage yourself if an incident happens. Many multi-car owners choose full coverage for their primary vehicle and liability-only for an older second car to strike a balance.
Should I bundle my auto insurance with homeowners or other policies?
Bundling insurance means getting multiple types of coverage (like auto and homeowners, or auto and renters) from the same company, and it usually comes with a multi-policy discount. If you own a home or have other insurance needs, putting them with the same insurer as your cars can lead to additional savings on top of your multi-car discount. Many insurers advertise sizable multi-policy discounts, which are often around 10% to 20%, sometimes up to 25%. Bundling can combine with your multi-car discount for extra savings, and it also simplifies your billing.
However, you should always compare the bundled price to separate policies’ prices. Bundling is not a guarantee of the absolute lowest cost; occasionally you might save more by using different insurers for different lines of coverage. But generally, if you have two or more cars and also a home or renters policy, getting a quote for a bundle is wise. According to industry data, the average home+auto bundle discount is about 18%, which can translate to significant savings annually. In short, bundling your policies is an easy way to shave off more costs without reducing your coverage.
How can I save on insurance if I have a teenage or high-risk driver in the family?
Insuring young drivers (like teens) or anyone with a spotty driving record can be costly, but there are ways to mitigate the expense even when you have multiple cars. First, take advantage of any good student discounts if applicable – many insurers offer a discount (commonly 5% to 15%, sometimes up to 20%) for students who maintain a B average or better in school. If your teenager has good grades or has taken a recognized driver education course, make sure your insurer knows; it could reduce their portion of the premium.
Second, assign the driver to the right car. In a multi-car policy, you can often designate which car each driver primarily uses. It’s usually cheapest to have a high-risk or young driver associated with the vehicle that’s least valuable and cheapest to insure.
Also, emphasize safe driving habits for all drivers on the policy. Insurance costs will go down over time if everyone maintains a clean driving record. Avoiding accidents and tickets for a few years can earn significant safe-driver discounts, which benefit the whole multi-car policy. If one driver is extremely high-risk (for example, due to a DUI or multiple accidents), ask your agent whether putting that driver’s vehicle on its own separate policy might save money. (Keep in mind you would lose the multi-car discount for that car in that case.)
Here’s another tip. Many insurers also offer driver training discounts or other programs for young drivers, so be sure to ask about any extra discounts that could apply to your situation.
Can I temporarily drop insurance on a car I don’t use often?
In most states, any registered car must carry at least liability coverage by law. If you drop insurance without turning in the plates then even if you don’t drive a car, you risk fines or a suspended registration.
So what options do you have if you know you won’t use a car for a while? Here’s what you can do:
1. Contact your state DMV to suspend its registration (or surrender the plates) and then you can cancel insurance until you need the car again.
2. Switch to a storage coverage (comprehensive-only) policy that covers non-driving risks like theft or fire.
Either option will save money compared to keeping full coverage on an unused car, while keeping you on the right side of the law. Just remember that you absolutely cannot drive the car until you reinstate its insurance and registration.
Frequently Asked Questions (FAQs)
Q: Should I refinance my car loans if I have multiple cars?
A: Yes, refinancing can be a smart move if it lowers your interest rate or monthly payments. When you own several cars, loan payments are a big part of your budget. If interest rates have dropped since you took out your loans (or if your credit has improved), you might qualify for a better rate. Refinancing one or more car loans to a lower rate will reduce the interest you pay over time, freeing up money that you can use for other expenses (like insurance or maintenance). Even a reduction of a percentage point or two can save you hundreds of dollars over the life of the loan.
Q: Can carpooling or sharing rides actually save money when I own two cars?
A: Absolutely. If your household has two (or more) cars, it’s easy for each person to take a separate car everywhere – but that’s not always efficient. Carpooling or coordinating trips will reduce how often each vehicle is used. For example, if two family members work or run errands near each other, using one car instead of two saves money on gas and reduces wear and tear on the second car. Over time, fewer miles driven on each car means lower fuel costs and potentially lower maintenance bills.
Q: Does doing my own car maintenance really save money for multi-car owners?
A: Yes, DIY maintenance can yield significant savings when you have more than one car. Routine services like oil changes, air filter replacements, wiper replacements, or battery swaps are tasks you can learn to do yourself with basic tools. By handling these at home, you avoid paying labor charges at a shop. Performing basic maintenance on two vehicles yourself could easily save you a few hundred dollars a year. Additionally, keeping up with maintenance (whether DIY or via a professional) prevents expensive problems down the road, which is especially important when those potential problems are multiplied by each vehicle you own. For complex repairs, it may still be best to use a mechanic, but for many simple tasks, a little DIY effort goes a long way toward cutting costs.
Q: What are some gas-saving tips if I have multiple cars to fuel?
A: Fuel expenses can add up quickly when you’re filling up two or more tanks. To save on gas, try to use your most fuel-efficient car whenever possible. For instance, use the vehicle that gets better MPG for daily commuting or long trips, and reserve the less efficient vehicle for shorter drives or as a backup. Also, keep all your cars well-maintained. Keep properly inflated tires, clean air filters, and timely tune-ups help maximize fuel economy. You should also plan and combine errands so that you’re not taking multiple cars out on separate trips unnecessarily. And consider using apps or loyalty programs to find cheaper gas and earn fuel discounts. Small savings per gallon will multiply across multiple vehicles, so being strategic about fuel can make a big difference over time.