YOU ASK:

Can I get cheap multi-vehicle insurance?

WE ANSWER:

Most insurers offer you a discount for insuring more than one vehicle under the same Personal Auto policy. You can get between 10 and 15 percent off your car insurance premiums, if you choose to add another auto, such as your spouse's or your child's to your contract. Although this looks like a great way to save money, it might be very misleading.

Why Cheap Multi-Vehicle Insurance Might Turn Out to Be a Myth

First of all, bear in mind that in auto insurance, cheapness, just like anything else in the world, is relative, i.e. what is cheap for one company might be considered expensive in another.

This means that if, for example, a vehicle insurance provider offers to sell you an auto policy with a 15 percent multi-vehicle discount included in the price, for $1,000, you might be happy that you are getting the discount. A lot of people forget that there might be another company offering a cheaper deal, even without a discount.

Imagine you happily accept the $1,000 deal offered by the company mentioned earlier, without going through the hassle of shopping around for other quotes, and later you find out that you could have been offered an $800 quote by another insurance company, albeit without a discount.

Providing a multi-vehicle insurance discount, is one of the many strategies insurers use to keep clients and stop them from continuing their search for vehicle insurance quotes elsewhere.

Although many people fall in the trap, you should be on your guard and continue shopping around, even if you get offered a seemingly cheap multi-vehicle insurance deal. The reason is that prices vary from company to company, sometimes drastically so, on the basis of each insurer's actuarial statistics. One company, for example, might have had a good record with BMW cars throughout the year, while in another one, BMW accidents and claims might have been too many. There is no way consumers can know these details in advance, so the best you can do is compare vehicle insurance quotes from different companies!

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