Many households start out with just one vehicle. However, as families grow, they may add a few more drivers to the ranks. They might add a few more vehicles, too.
If your family is in this situation, you will likely see your auto insurance costs rise. This cost increase reflects the growing insurance needs of your household. Every vehicle needs auto insurance coverage. Every driver needs a car insurance policy, too, even if they don't drive frequently.
Put all this together, and policies can get expensive quickly for larger households. Fortunately, multiple vehicle discounts can help ease the pain of sticker-shock.
What Are Multiple Vehicle Policies?
Auto insurance companies will often provide drivers with a discount for insuring multiple vehicles on the same policy. There are limits to this discount, though. For example, the owners of the vehicles on the plan generally must live in the same household. This household must also be listed on the policy.
If you qualify for a multiple vehicle policy discount, the savings can be substantial. It is often less expensive to place two or more vehicles on one policy than it is to have multiple insurance policies for each individual vehicle.
Multiple Driver Discounts Can Save Money, Too
If you have numerous drivers in one household, list them all on the same policy. Just like multiple vehicle discounts, multiple driver discounts can help reduce costs. Keep in mind that similar limitations apply though. The drivers should all live in the same household specified on the policy.
Also note that if one driver is a high-risk driver, it can lead to higher premiums for all drivers listed on the policy. However, the implications here might be minor. The effect of the increase depends on the specific risks and claims history of the household.
Why You Will Save Money
Auto insurance companies want you to insure all of your vehicles through them. If you turn to them for coverage for all the drivers and vehicles in your household, you are more likely to remain loyal long term. This will help the insurance company grow and maintain a client base, which lowers their overall costs. Those cost saving passes on to you.
As you consider your auto insurance coverage, determine if there are savings opportunities available. You'll likely find that most drivers in the same household should use multiple vehicle coverage. Multiple drivers on one policy can also reduce costs.
Keep in mind that there is no change in the quality of coverage you obtain. By combining drivers or vehicles under one policy, you'll likely get more value for the coverage that you need.
For more information on your coverage, contact Fulton Agency today. We're here to help you!