Consumers looking for a bargain in automobile insurance should pay close attention to this: multi-car discounts lower your auto insurance premiums. What do you need to know about how such multiple car discounts work? Read on.

Multi-car discounts lower your auto insurance premiums because the auto insurance company is rewarding you for adding vehicles in the household to your policy. Sure, you’ll be paying more to insure two or more cars rather than one, but you’ll also be maximizing your savings. How? It’s simple. If you insure two vehicles at two different insurance companies, you’re going to pay more than if you combine both vehicles into a bundled multi-car policy at one insurer.

Of course, you need to take into account that the best rates will be available to drivers – no matter who they are in the household or with which car – have the best driving records. So, if one member of your household has racked up a slew of tickets or has been involved in an accident within the past three to five years, it’s probably better for that individual to be insured elsewhere and not included on a multi-car policy with your insurer.

But in general, multi-car discounts lower your auto insurance premiums by quite a bit. How much depends on a number of factors and ranges from about 10 percent to up to 25 percent.

The good news is that almost all the major auto insurers offer a discount for insuring more than one vehicle with them. Top insurers offering multiple car discounts include Progressive, GEICO (which offers a discount up to 25 percent for more than one car insured), Esurance (you can insure up to four vehicles and qualify for a discount), Nationwide (get up to a 20 percent multi-car discount), Erie (multi-car discount for insuring two or more vehicles with them), and more.

How should you go about finding more information about multi-car discounts to lower your auto insurance premiums? Start by going online to your current auto insurance provider. Check out available discounts and see if they offer one for insuring more than one vehicle with them. You might want to contact your agent, if you have one that you deal with. Tell him or her that you’re interested in possibly adding another vehicle to your current policy and inquire how much you could save. If your agent also handles other insurance companies, you might ask if there’s possibly a better deal out there for you with one of them.

Keep in mind, however, that before you jump ship and go with another auto insurer that you may be sacrificing your current loyalty rewards with your existing insurer. Also, don’t forget that you may qualify for other discounts on top of multi-car discounts to lower your auto insurance premiums. You won’t know if you don’t look into them or inquire about them.

As always, the smart shopper is the one that takes the time to do the research required to save as much money as possible. With car insurance rates a fairly expensive item, it makes sense to take the effort to find out how much more you can save than you’re currently spending.

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