What is a multiple-policies discount?

A multiple-policies discount is a way to save on your car insurance by adding another type of policy with the same insurer. Doing this is called bundling, and it may also add convenience. You can save an average 25% if you bundle auto and home. However, you might save more by having separate insurance policies with two companies. Compare discounts to know if a multi-policy discount is right for you.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Sep 3, 2021

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Things to Know

  • A multiple-policies discount applies when you have policies for different types of insurance with the same company and its affiliates
  • Many companies, including American Family and Allstate, allow you to pair your car insurance with other products
  • You might want to have a multiple-policies discount for the added savings, but there are at least two other benefits
  • Sometimes, it might be cheaper to buy different insurance products from multiple companies

What is a multiple-policies discount? A multi-policy discount is one way you can save on two or more types of insurance with the same insurance company. Another word for it is bundling.

If you are looking for a good car insurance company, the multiple-policies discount is perhaps the most popular. In most cases, you may have to purchase home insurance to take advantage of the multiple-policy discount and save on your home and car insurance.

However, some companies also allow you to bundle your auto insurance coverage with different policies. These include RV, motorcycle, life, and health insurance.

The top car insurance companies will advertise their multi-policy discounts because they want your business and the best way to do that is to help you manage more than one type of policy.

Read on to know more about what a multiple-policies car insurance discount is and why you might want to bundle. To see quotes from top car insurance companies in your area, enter your ZIP code into our free quote tool above.

What is a multiple-policies discount on car insurance?

If you need more than one type of insurance, you should consider using one insurance company. This can be especially beneficial when you need car insurance.

As stated above, you can purchase home insurance through your car insurance company to save on one or both policies. You can also pair your auto with another insurance product, like renters or life insurance.

In other cases, you may also have a multiple-policies discount if you have two different types of vehicles insured by your company.

  • For instance, your company will insure your car and RV with two separate policies
  • If you own a classic car, you may need to purchase classic car insurance; it is separate from your primary car insurance policy
  • Allstate and Progressive offer unlimited multi-policy discounts on cars, motorcycles, and other types of vehicles. Both have classic car insurance, too

Some companies allow you to save on your car insurance if you have another form of insurance with one of their affiliates. For example, GEICO offers auto and home insurance through separate affiliates that work under its trademark.

With that understood, let’s see how much you can save with a multiple-policy discount.

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How much can you save with a multiple-policies discount?

What is a multiple-policies discount car insurance company with the most savings?

Since there are too many combinations to name, let’s focus on the types of savings you can have with the most popular bundles: multi-car, auto with home, and auto with renters insurance.

Multiple Policies Discounts by Insurance Providers
Car Insurance CompanySavings on Multi-CarSavings with Auto + HomeSavings with Auto + Renters
AllstateNot specifiedUp to 10%Not specified
American FamilyNot specifiedUp to 28%15%
FarmersNot specifiedAbout 20%Not specified
GEICOUp to 25%Not specifiedNot specified
Liberty MutualUp to 15%Up to 15% or $947About 5%
NationwideUp to 20%Up to 20% or $646Not specified
ProgressiveAbout 4%About 4%-5%About 4%-5%
State FarmUp to 20%$965$722
TravelersNot specifiedUp to 10%Not specified
USAANot specifiedNot specifiedNot specified

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Often, it is harder to determine how much you can save by pairing your auto insurance with something other than another car, home, or renters insurance. You will usually enjoy the most savings with a multi-car or the auto and home combination.

What are the advantages of having a multiple-policy car insurance discount?

Having a multiple-policies discount can be advantageous in several ways.

  • Savings: You will be able to save on your car insurance
  • Organization: You get to have several or all your policies in one place
  • Convenience: If your car insurance company offers a smartphone app, you will have the added convenience of accessing your policies through one portal

These are a few factors you should consider when choosing a car insurance company. However, there may be a few drawbacks to using a multiple-policies discount. We discuss that below.

Are there any drawbacks to using a multiple-policies discount?

Yes, there are a few disadvantages of having multiple policies with one insurance company. These include cost and the quality of coverage.

Just as you should look at possible savings when seeking a multiple-policies discount, you should consider whether you can save by having two different policies with two companies.

Sometimes, it might be cheaper to buy your home and auto or your regular auto and classic car insurance separately. Also, if your top concern is getting the discount, you may tie yourself to a company that does not offer the best coverage for your situation.

Additionally, some companies that offer multiple-policy discounts do not directly provide all the coverage they allow you to save on. That can be a double-edged sword.

In one respect, you can get a discount with your insurer if you work through an affiliate. However, if your car insurance company is a broker for the affiliate, you might not save that much.

As the Insurance Information Institute reminds us, you need to look at more than one company and compare rates. In some cases, you may save money by getting your car insurance from one company and purchasing other types of insurance from another.

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Is a multiple-policies car insurance discount for you?

In the end, you must decide which insurance situation is best for you based on a few factors. To help you out, here are some tips for saving money on your car insurance:

  • Shop around. Besides looking at prices, look at the quality of coverage that each insurance company offers you. And look for multi-policy discounts that cover different vehicles if that is what you need
  • Only buy as much coverage as you need. It is always a good idea to get some more coverage beyond your state minimums, but only get extra coverage as you need it
  • Check to see whether your car insurance company of choice works with an affiliate to provide other types of policies. In some cases, you might save more money if your insurance company directly handles claims for all the insurance types you need

Talk to an agent. An agent can help you find the right policy based on various factors, like your age and credit history. You can also talk to an agent to notify your current car insurance company before switching to another.

As a reminder: When you are looking to take advantage of a multiple-policies discount, you must consider the amount of savings you get, who handles your policies, and convenience. But the most important thing you need to think about is the quality of coverage.

In short, compare quotes, compare coverages, and talk to an agent.

Hopefully, we have helped you know more about what a multiple-policies discount on car insurance is. To look at quotes for top car insurance companies in your area, enter your ZIP code into our free quote tool below.

What is a multiple-policies discount? Frequently Asked Questions

Here are some common questions that you may have about multiple-policies discounts, along with some answers:

#1 – How many cars can I insure with GEICO?

That is not entirely clear. Most car insurance companies will limit you to four drivers and four vehicles, but GEICO does not specify how many vehicles it will insure for one household.

#2 – Can you have two car insurance policies on two different cars?

Of course, you can. For example, one car insurance company can insure a classic car when another does not. However, it might be best to have all your vehicles covered by the same company.

Holding two car insurance policies from different companies can cost you more. And if you insure more than one car with the same company, you may be able to save by having a multi-policy or a multi-car discount.

#3 – Can you have two car insurance policies in the same household?

Yes, you can. For instance, you can have one car insurance policy for a newer model car that you regularly use and another for an RV.

In some cases, you may be able to take advantage of a multiple-policy discount if you are paying for both policies with the same car insurance company.

In other cases, you can insure the same car with two policies from two companies — but only in the same state. However, there are several drawbacks to doing so:

  • It might result in the cancellation of one policy
  • If you are allowed the two policies, you will be unable to take advantage of a multi-car policy
  • You might be guilty of insurance fraud if you make separate claims for the same accident

Sometimes, you may have primary and supplemental insurance, where you can use two insurance sources to cover your liability. In such a case, your primary insurance has a limit that you set, and supplemental insurance can cover the difference.

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