Multiple cars: Census data shows that 37.1% of households had two vehicles in 2021, while 22.1% of households had three or more. Multi-car insurance policies come with discounts, but they also cost more than single-car policies.1

Young drivers: Teens are notoriously expensive to insure, with auto insurance rates more than double those for middle-aged adults. But they also need more coverage to protect against the risk of accidents.

A family budget: Car insurance costs are squeezing family budgets more than ever. A recent study by Jerry found that 72% of Americans feel that car insurance is now too expensive for the average person.2

Learn more:

How to find multi-car insurance policies online

Step 1: Determine who needs to be on the policy

All family members authorized to drive should be listed on your policy. That includes spouses, children, and anyone else in your household with a valid driver’s license.

Example: The Milton family is shopping for car insurance with Jerry. Eric and Andrea Milton have four children: Erin (19), Daniel (17), Helen (12), and Murphy (8).

Their household includes four drivers.

Keep any family members who still live at home long-term on your policy. For instance, if one of your children goes to college away from home, they should still be on your car insurance as long as they don’t have a different permanent mailing address.

Learn more:

Your guide to shopping for car insurance with teens

Step 2: Request quotes

You can request

car insurance quotes

directly from auto insurance companies or work with an independent broker like

Jerry

. Working with a broker allows for more flexibility when adjusting coverage and better odds of finding low car insurance rates for your family.

Example: The Miltons have three cars: a 2012 Toyota Tundra that Eric uses for work, the family minivan (a 2023 Honda Odyssey), and a lightly used Mazda 3 that Erin and Daniel share when she’s home from college.

All vehicles in your home should be insured on the same auto insurance policy if they’re garaged at the same address. The primary exception is for vehicles that require specialized insurance, such as

a classic or collector vehicle

This app is a game changer! From quoting to cancelling policies, Jerry does it all. I was able to save right at $100/mo by switching. Best of all, Jerry did all the work, which was fantastic because between work and kids I probably would not have had the time to do this myself! —Kalynn W.

Step 3: Adjust your coverage levels

All of your family’s vehicles must carry the same limits for

liability coverage

uninsured motorist coverage

, and

medical payments coverage

; these limits are set at the policy level. For most families with teen drivers, the ideal liability limits are at least:

$100,000 of

bodily injury liability

per person

$300,000 of bodily injury liability per accident

$100,000 of

property damage liability

per accident

Carrying high liability limits protects your assets from potential lawsuits. Because teen drivers have a statistically high rate of serious car accidents, high liability limits are an essential safeguard when you have young drivers on your family plan.

Comprehensive

and

collision coverage

are different. If you have a

full coverage policy

with collision and comprehensive coverage, you can adjust the deductibles and add-ons applied to each vehicle on your policy.

Example: The Miltons choose to raise the collision and comprehensive deductibles on their cars from $500 to $1,000 to lower the cost of coverage.

They drop towing and labor coverage for Eric’s work truck but keep rental reimbursement since he needs the truck for work.

For the kids’ Mazda, the Miltons keep unlimited roadside assistance but choose to drop rental reimbursement.

You can fine-tune your coverage limits and get new car insurance quotes any time in the Jerry app.

Basic liability insurance is an option for family car insurance plans—but only drop full coverage on older cars that you own outright and can afford to replace.

Step 4: Turn on discounts

Car insurance discounts

are essential for any family auto insurance plan. Teens and multiple vehicles raise your insurance premiums; discounts give that money back by rewarding things like homeownership, good grades, and responsible payments.

The best car insurance discounts for families include:

Multi-car discounts: Most insurance companies offer a discount to policyholders who insure more than one vehicle. These discounts vary from company to company, but you’ll typically get between 8 and 25% off your policy.

Good student discount: If any driver on your policy is a full-time student under age 25, they can

earn a discount of 10 to 25%

by maintaining a B average or better in school.

Student away at school discount: If your child attends college 100 miles or more from home,

ask your insurer about a discounted rate

to account for the fact that they have no access to your vehicle for most of the year.

Bundling discounts: If you own your family’s home, you can get lower rates by

bundling your homeowners and car insurance

with the same company. You can also bundle renters insurance for a smaller discount.

Good driver discounts: Maintaining a clean driving record, taking defensive driving courses, and

enrolling in telematics

can all lower your family’s insurance costs.

Example: To lower their rates, the Miltons enable good student discounts for Erin, who is a sophomore at Baylor University, and Daniel, who gets straight As in high school.

They also plan to enroll their kids in a defensive driving course approved by their insurer.

All insurance providers offer discounts, but they vary from company to company, so do your research. For instance,

GEICO’s good student discount

is slightly larger than

Progressive’s

, but Progressive offers a distant student discount for families with college students, while GEICO does not.

Elephant Insurance, a Virginia-based home and auto insurance company, offers a multi-car discount of up to 46% off your auto policy.

Step 5: Finalize your price

Once you’ve found a quote for auto insurance coverage that works for your family, finalize your price as soon as possible. All car insurance quotes are time-sensitive, so delaying your purchase could cause your rate to go up.

Example: After reviewing all their coverage options, the Miltons settled on a plan from Elephant Insurance that offered full coverage for all three of their vehicles, plus discounts for good grades, defensive driving courses, and safe driving.

With Jerry, most car insurance policies are activated within three hours.

Jerry found me coverage for $163 less per month! This helps our family so much. It only took about a half hour total and Jim with Jerry got my payment info quickly and efficiently. I highly recommend checking this out if you want to save money. —Allison O.

Next steps

Lower car insurance rates aren’t all Jerry has to offer for families. Once your new policy is in place, don’t forget to:

Set up maintenance reminders: Stay on top of car maintenance for all the vehicles on your policy by turning on maintenance reminders in the Jerry app’s Garage tab.

Get your family’s driving score: Any family members with the Jerry app on their phone can get a free safe driving scores that won’t affect your insurance rates—along with tips to improve driving habits and exclusive rewards for safe driving.

Turn on location services: Share driving scores, trip reports, and live real-time location for all family members in the app.

FAQs

Is it cheaper to have family car insurance?

It’s usually cheaper to insure young drivers on a family plan rather than purchasing a separate policy. It may also be the only way to buy car insurance since all household members at a single address should be listed on your policy.

Can people in the same household have different car insurance?

While it’s technically possible for drivers in the same household to have separate car insurance policies, all drivers will need to be listed on each policy. If one family member has a high-risk profile due to frequent claims or moving violations (e.g., repeated speeding tickets or a DUI), you may be able to list them on your policy as an “excluded driver,” meaning that they are not insured to drive your car.

What is the average cost of family car insurance?

On average, families with teens pay 48% more for car insurance than single drivers or married couples with no children on their policy.

How long does it take to get car insurance?

It typically takes between one and three hours to purchase and finalize a car insurance policy with Jerry. Most insurers offer same-day coverage in most circumstances, but your policy could be delayed if you requested quotes on a holiday or outside of normal business hours.

What are the best car insurance companies for families?

Because family car insurance involves more factors than other types of insurance, there’s no single insurance company with the best deals for every family. Multiple vehicles, multiple driver profiles, and varying discount eligibility mean that rates will vary significantly from family to family.

The best way to find the cheapest car insurance for your family is to work with an independent broker like Jerry.

SOURCES

https://www.forbes.com/advisor/car-insurance/car-ownership-statistics/

https://getjerry.com/studies/soaring-car-insurance-forces-half-of-americans-to-cut-spending