What is a Multi-Car Discount?
A Multi-Car Discount is a common feature of many auto insurance policies, providing savings to customers who insure multiple vehicles. By bundling more than one vehicle under a single policy, insurers often offer a reduced premium as an incentive for managing multiple cars within the same household or family.
This discount benefits families or individuals who own several vehicles, as it simplifies management and often leads to lower overall insurance costs. For example, if a household insures two cars, the insurance company may offer a discount for each vehicle, effectively lowering the total premium.
Additionally, the Multi-Car Discount helps insurers improve customer retention, as policyholders are less likely to switch providers when multiple vehicles are insured under one plan. However, all vehicles must be primarily garaged at the same address to qualify for the discount.