The Effect Multiple Insureds Have On A Policy
Purchasing car insurance is an important decision that requires the best information available in order to save you money. Most people know that gender, age, and your specific vehicle all play a role in how much insurance costs. What some may not know, though, is that having multiple insureds on your policy can also result in savings for your policy.
Before we get into what these savings are and how you can take advantage of them, we'll first talk about what this term means. Under one vehicle insurance policy, you can have multiple cars and multiple drivers. For example, you can have one driver who has two cars. Or, you can have two drivers under the same policy, either with their own vehicles or sharing a vehicle. This is similar to the concept of a group life insurance policy that you find with many employers.
Although specifics may vary, generally speaking, having multiple people on a policy results in discounts and savings for the policy holder. Let's look first at the owner with two vehicles. Frequently, the owner of these two vehicles will have two different policies under different insurance companies, with the owner typically paying more money per month. Dropping one policy and combining the two under one roof can save the owner money.
Let's also look at having two drivers with two separate policies. It is usually cheaper to do this rather than take out separate policies for each person. For example, teenagers usually get their first insurance policy by being placed on the insurance that their parents use. While this adds to the overall cost of the primary policy, it also saves money on the total cost of car insurance for the family. Of course, some companies have restrictions on who may join a policy (like age). With that being said, most companies allow combining policies and adding drivers.
Check with your current insurance company to see if it is feasible for you to have multiple drivers or vehicles on your policy. If so, check to see if it will result in a lower premium. If this is not the case, you may want to consider shopping around for a different policy. Some companies will even give you an overall discount if you have multiple insurance policies on your account from the same company. For example, if you have auto insurance in addition to renters' and life insurance, you will receive a discounted rate on all of your insurance payments.
Give your insurance company a call today and see if any of this applies to you. One phone call can get you more informed and help you save money.