Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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UPDATED: Jul 14, 2021

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Important facts to know...

  • If you have more than one member of your household that is driving, discounts might be available
  • Most car insurance companies offer discounts for having multiple cars from a single household insured under the same policy
  • There are also discounts for having multiple drivers in the same household listed under the same auto insurance policy
  • No matter how many cars or drivers are listed on a single auto insurance policy, the policyholder has the final say and responsibility in changes regarding the policy
  • If you have a child who is starting to drive, insuring them under your family auto insurance policy will save you money

If you have a family, it makes sense to try to save as much money as possible whenever you can.

Saving money is important when looking for car insurance because the way that you structure your policy can have a huge impact on the premium that you must ultimately pay.

If you take the time to ask the right questions about getting a discounted auto insurance rate for your family, you will reap the rewards in a lower premium and more comprehensive coverage for you and your family members.

Looking for better auto insurance rates for you and your family? Start comparison shopping by entering your ZIP code above!

Getting a Multi-Car Discount for Your Family

One of the most popular discounts that many auto insurance companies will offer is a multi-car discount. For you to be eligible for this discount, many car insurance companies require that all of the cars listed under the same policy belong to members that live in the same household.

The reason that the location of the cars owned by different family members matters is that insurance rates vary by the zip code you live in.

Some zip codes, such as those for city areas, have higher crime rates and a greater likelihood of a claim being filed.

Auto insurance companies want to make sure that you are not taking advantage of having a car listed in a zip code that is different from where it is actually being used.

Another way to make the most of the available car insurance discounts is to make sure that your home insurance is with the same company that handles your auto insurance.

Companies offer great incentives for having multiple lines of insurance with the same provider, and it is easy to move your existing policy to a new company that provides a multi-line discount.

Before you do that, you need to check and make sure that your auto insurance company also offers home insurance.

If you ask your current auto insurance company about a discount for adding other family members and their cars to your policy and do not get a positive response, this could be a sign that you should look into other auto insurance companies.

With the current technology available for rate comparison online, it is easier than ever to see what prices you could be getting in your area.

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Making Adjustments to Your Policy Limits

When you add new drivers to an existing auto insurance policy, it may be necessary to increase the limits of your policy.

If you are adding a new teen driver to your auto insurance policy, increasing your insurance limit is especially vital. Your teenager is much more likely to cause an accident than a more experienced driver in your household.

To protect yourself and your financial assets against the increased risk of a claim being filed against you as the policyholder, you should increase the overall limits of your policy.

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For example, if you have a $50,000 policy limit for property damage and a driver in your household causes $100,000 in property damage in an accident, you would be responsible for paying the remaining $50,000 in damages out of your own assets. In this case, the injured party would sue you personally to recover the difference.

A good option for families with multiple drivers in the same household is to consider an umbrella policy. An umbrella policy is a particular type of policy that will kick in when you have reached the limits of your existing auto insurance policy to cover the difference in damages claimed.

Many umbrella policies extend to $1 million in coverage for a household.

You can quickly check what the additional cost would be to have this coverage added to your current insurance.

Talking to Your Teen Driver About Safety

If you have a child learning how to drive, you need to discuss the responsibility of being a safe driver. Teen drivers are still in a developmental stage and need all the support from parents that they can get in staying safe on the road.

You can start by laying down firm rules about what behaviors, such as talking on a cell phone or having friends as passengers, are never allowed in the car.

If your teen driver can avoid getting into any accidents or speeding tickets during his or her first years officially behind the wheel, this will dramatically lower the rate that they are forced to pay in auto insurance premiums down the line.

Until your teen driver has a few years of experience and a clean driving record under his or her belt, it makes the most sense to list him or her as a driver on your current auto insurance policy.

In fact, some companies may even refuse to extend auto insurance to a teen driver on his or her own because of the increased risk that they pose as an insured driver.

The Last Things You Need to Know

If you have more than one driver in your household, it is always best to ask about family discounts so that you can save some money on your auto insurance policy. Insuring multiple cars and drivers under the same policy is cheaper than to have them individually insured.

The discounts you can get will vary according to the auto insurance company that you work with.

Just remember that when you add multiple cars and drivers to an existing auto insurance policy, it is important to make sure that you have increased the policy limits and types of coverages accordingly.

Start comparison shopping today for better auto insurance rates for your family! Enter your ZIP code below!