Family car insurance includes anyone who might live at your address, whether it’s your spouse, children, parents or roommates. Purchasing a family plan is cost-effective in most households with more than two people and two vehicles. Shopping around for auto insurance is a key step in the process of looking for a policy to cover your entire household or family.
What impacts your rates when creating car insurance family plans
The quotes you get for your family auto insurance policy will vary from depending on factors like the number of drivers covered, the vehicles you’re insuring and the ages of everyone on your plan.
Drivers’ profiles
When you add a driver to your policy, your rates will generally go up — but it’s still usually cheaper than buying a separate policy for each individual driver. Your exact rates will depend on a lot of factors, including who you’re insuring on the policy. If one of your added drivers is a young motorist, for instance, you may experience higher-than-average rates once they’re on your policy.
But it’s not only age that can impact your premiums — it’s also the driving record of the person you’re including on the family plan. If you add someone who has a history of violations, their high-risk status will influence how your rates are calculated.To help maintain lower-than-average rates with drivers of varying profiles, make sure to take advantage of car insurance discounts, defensive driving courses and comparison shopping.
Your marriage status
When you change your marital status, you might get a better deal on your car insurance. Based on Jerry customer data, the average monthly price for car insurance if you’re married is slightly better than if you’re single.
|
Marital Status
|
Avg Monthly Quote
|
|---|---|
| Married | $234 |
| Single | $276 |
If you’re insuring more than one car
With more drivers in your household, you might need to add a new vehicle, too. The latest available Census data shows that 37% of households have two vehicles, while 22.1% of households have three or more. While multi-car insurance policies for families often come with discounts, they also cost more than single-car policies.
Keep in mind that the type of vehicle you’re adding to your policy can also impact your car insurance premiums. For example, the cost to cover a Tesla Model Y will be more expensive than a Honda Civic, due to higher replacement and repair costs. But some insurance companies offer lower prices for newer cars, so it’s best to compare rates before choosing a provider when shopping for car insurance for your family.
Building an affordable car insurance family plan
To find the right auto insurance for your family, you’ll need to decide who will be on your policy, how much coverage you need, and which insurance provider is the best fit for you. Here are the steps you should follow to find the right policy for you and your family.
Step one: Figure out who to include on your policy
Every person who can legally drive at your shared address should be included on your car insurance policy. That includes spouses, children, parents, family members and anyone else in your house who gets behind the wheel.
Similarly, if you have a child who goes away to college, they should also stay on your policy until they get a new permanent home address.
Your policy should also include all cars that are regularly parked at your address — unless you have a vehicle that requires specialized insurance, such as a classic or collector vehicle.
Step two: Adjust your coverage levels
Once you’ve established how many people will be covered on your family auto insurance, decide how much coverage you need. Every vehicle covered on your family plan will need the same limits for liability coverage. These limits are generally set at a policy level by your state, and not individualized by vehicle.
For families with teen drivers, liability coverage is extra important. Teen drivers are more likely to get into an accident due to their lack of experience behind the wheel, so high coverage limits provide essential financial protection for parents.
Unlike some other types of auto insurance, comprehensive and collision coverage can usually be individualized for each vehicle. If you have a full coverage policy with collision and comprehensive coverage, you can adjust your add-ons and your deductible for each vehicle on your policy.
TIP: As you update your coverage for new drivers, consider adding an umbrella policy. This extra coverage — beyond your standard auto insurance liability limits — protects your household in case of major accidents or lawsuits.
Step three: Request several multi-vehicle insurance quotes
It’s now time to start shopping for a new policy. Experts recommend getting quotes from a minimum of three different insurance companies before settling on a policy.
These name-brand insurers have added benefits for families:
| Insurance Company | Family Benefits |
|---|---|
| Clearcover | – Fast claims processing with Clearcover app (record is 7 minutes). – Easy policy management via mobile app. – Additional discounts for military customers. |
| National General | – Rewards drivers who use DynamicDrive with lower rates. – Offers 24-hour claims reporting (payment provided within 48 hours). – Lifetime repair guarantee for collision repairs done at Gold Medal Repair Shops. |
| Kemper | – Roadside assistance available for all policyholders with 24/7 towing. – Supplies several discounts, such as multi-car, homeowner and proof of prior insurance. – Offers SR-22 coverage for drivers with violations. |
| Nationwide | – Provides Accident Forgiveness to avoid rate increases after a collision. – Drivers can earn up to 55% off premiums with SmartRide telematics. – Allows drivers to combine auto, home and life insurance for cheaper premiums. |
| Direct Auto | – Customizes plans for policyholders with flexible payment options. – Supplies families with senior members a senior citizen discount of up to 5%. – Offers an easy-to-use mobile app. |
| Safeco | – Offers new vehicle replacement and rental car reimbursement for those with newer cars. – Drivers can get a diminishing deductible if they don’t file any claims during the policy year. It continues to decrease for up to five years or until the $500 max limit is reached. – Helps drivers save between between 5% and 30% on your policy per year with RightTrack telematics. |
You can choose to shop for quotes on your own, or work with an independent insurance broker like Jerry to simplify the process. With Jerry, you can compare dozens of customized quotes to find the best policy for you and your family.
Step four: Check for discounts
Most insurance providers offer car insurance discounts of one kind or another. These opportunities for savings are essential for family auto insurance plans, since having teenagers and/or multiple cars on your policy can cause rates to skyrocket.
Some discounts that could help your family save include:
- Multi-car discounts: If your family has multiple vehicles, you’ll typically be able to get a discount often upwards of 25%.
- Good student discount: Full-time students, sometimes with stipulations like “under the age of 25,” can earn a good student discount on their family car insurance between 5% and 25% depending on the company.
- Student away at school discount: Students on your family plan who attend college 100 miles or more from your home may qualify for a student away at school discount.
- Bundling discounts: For many families, bundling auto and homeowners insurance (or renters insurance) with the same company can save you an average of 15% to 25%.
- Good driver discounts: Maintaining a clean driving record can lower your family’s insurance costs by a provider-specific amount.
Step Five: Finalize your price
Once you’re satisfied with your coverage levels, deductible(s), discounts and provider of choice, it’s time to finalize your policy.
With Jerry, it’s a quick, easy process on the app to finalize your price. You should do this as soon as possible after finding a policy that works for you, as car insurance quotes are time-sensitive and subject to change — so waiting too long can cause your premium to increase.
FAQ
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Can people in the same household have different car insurance?
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Is family car insurance cheaper?
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What is the best car insurance for families?
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Can you have two car insurance policies?
Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.
Liz Jenson is an insurance writer who specializes in general automotive and insurance topics. Liz’s mission is to produce informative and useful content to help car owners make smart choices when buying cars and car insurance. Since joining Jerry in 2021, Liz has written nearly 4,000 long- and short-form articles on topics including state-specific insurance recommendations, common car insurance questions, and deep dives into vehicle model details. Before they came to Jerry, Liz was a full-time student at Indiana University, Bloomington working on a double major in English and French.
Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.
