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Can More Than One Person Be Insured on a Car

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When it comes to car insurance for multiple drivers, there are several options available. You can put several drivers on the same policy, opt for a multi-car policy, or activate a driver exclusion as part of your policy. It's important to compare costs before making your decision.

Can Multiple Drivers Share Car Insurance?

The simple answer is that yes, drivers can share insurance if all drivers are listed on the policy. Your premium reflects the additional risk of having numerous drivers use one vehicle, and you'll probably pay more for this policy compared to that of a single-driver policy. However, opting for a multiple-driver policy is the cheaper alternative than buying two individual policies.

Most insurers let you combine up to four drivers and four vehicles on the same policy. If one driver doesn't live in the same household, simply add them as a non-resident driver.

Keep in mind, though, that if one driver gets a violation or is involved in an accident, the entire premium will experience an increase. It reflects the increased risk since everyone is on the same policy.

If you want to close out the multi-driver policy and get your own insurance, this new premium will not reflect accidents or violations the other driver accrued. These are connected to your Motor Vehicle Report (MVR), which is used to calculate your own premium. Look at your MVR if you believe you're paying extra for violations you didn't cause.

What Can You Expect With Multiple Driver Insurance?

According to The Zebra, the following companies offer some of the most affordable six-month rates for multiple driver households:

  • State Farm: $1966
  • Allstate: $1137
  • Liberty Mutual: $1078
  • GEICO: $651
  • Progressive: $746

    Several factors come into play when insurers determine car insurance rates. They consider your ZIP code, the type of coverage you need, and your personal information. Some of these pieces of personal information include the following:

    • Your gender and age: According to AutoInsurance.org, men pay more for insurance, as do drivers under the age of 25. However, seven states no longer legally allow car insurance to use gender to determine rates.
    • Your driving history. If you've been in several accidents or have a few tickets, your rates will be higher.
    • Your credit score. Some studies have shown that those with poor credit usually don't handle driving responsibly either.
    • Your vehicle. Newer vehicles cost more to repair, and sports cars increase your risk of getting a speeding ticket, so your rates will usually be higher.

      Sometimes a driver you want to list on your policy has a driving record too poor, and your insurer might refuse to insure them. If that happens, you can name this person as an excluded driver. Any accidents for which this person is responsible won't be covered by the insurance company, but you remain responsible for paying for the damages.

      Opting for a driver exclusion can help you save on your premium. If that driver goes three years without any more convictions, that person will probably be able to join your regular policy again.

      What's the Best Way to Find Cheap Insurance Rates?

      One of the best ways to find cheap auto insurance rates is to compare quotes from several insurers. You might realize you qualify for impressive multi-car discounts, or you could realize that it's cheaper to get a separate policy for one family member from a different insurer.

      Look into discounts offered by different companies. You might offset the additional costs associated with adding a teen driver to your policy if you select a company that provides a good driver or safe driver discount.

      Once you find a few that work for your needs and budget, do more research and make sure the company has authorization in your state. Look at the company's financial trends, and see if the company has long-term plans. You don't want to sign up with a company that might declare bankruptcy in the future.

      What Is a Multi-Car Policy?

      A multi-car policy is a popular option as it covers more than one vehicle you keep at the same address. It's usually cheaper to opt for this policy instead of separate ones as you usually receive a discount for each vehicle insured.

      Other than having the vehicles at the same address, other rules on the policy vary. Some offer a discount if all the insured vehicles are in the same household and insured by people all related to each other. Others require the vehicles are housed at the same location but it doesn't matter if you're related to the people in the household.

      Some insurers even offer a multi-vehicle discount to people living at the same address even if you have separate policies. There might also be a limit on the number of vehicles on a single policy, which is usually four or five.

      The benefits of having a multi-car policy include the following:

      • Pricing. Many insurers offer a large multi-car discount. According to Insurance.com, you could save between 10 and 25 percent on your premium with this type of discount. Compare that discount to others, such as a good student discount of typically 5 percent, and you'll notice the savings are substantial.
      • Single insurance deductible for all vehicles. If more than one of your vehicles receives damage from the same incident, you only need to pay one deductible.
      • Stacking car insurance. Some states allow you to stack your underinsured and uninsured bodily injury motorist coverage when you have several vehicles on the same policy.
      • One renewal date. You only need to worry about one due date since there's only one policy. Getting separate policies for every vehicle means you have to keep track of different due dates.

        If a driver who has a poor driving record or a higher-end vehicle moves into your home, such as a parent or roommate, it's probably not a smart idea to include them on your policy. Your insurer will consider the other driver's driving record and type of vehicle, probably hiking your rates. Luxury vehicles come with a higher premium, and even one or two tickets can increase the premium rates dramatically.

        When looking for car insurance for multiple drivers, take into account how many vehicles you're wanting to insure as well as the driving history of all the drivers. There are several discounts available that you might qualify for that still allow you the same type of coverage.

        Check this out if you need additional information, resources, or guidance on car insurance.

        Sources:

        https://www.thezebra.com/auto-insurance/policies/car-insurance-multiple-drivers/

        https://www.autoinsurance.org/auto-insurance-buying-guide-for-families-with-multiple-drivers/

        https://www.insurance.com/auto-insurance/auto-insurance-basics/multi-car-policies.html

        https://www.caranddriver.com/car-insurance/a32500093/who-has-the-cheapest-car-insurance/

        https://www.caranddriver.com/car-insurance/a31269334/how-is-car-insurance-calculated/

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        Can More Than One Person Be Insured on a Car

        Source: https://www.caranddriver.com/car-insurance/a36147033/car-insurance-multiple-drivers/