For families looking to save money on car insurance, a multi-car or family policy is a great option. A family car insurance policy can open the door to additional discounts and add extra peace of mind if you have a young driver in your household.
We at the Guides Auto Team have researched and ranked the best car insurance companies in the industry. In this article, we’ll highlight a few of our top-rated providers and discuss the benefits that come with their family or multi-car insurance policies.
Family Car Insurance Overview
A family car insurance policy is basically a policy that covers all legal drivers in a family. This type of coverage is essentially a multi-car policy, and its requirements are simple. As long as you have two or more drivers on the same policy, you can buy family coverage.
In a family car insurance policy, each driver is typically assigned to the vehicle they drive most often. Teen drivers are usually paired with older vehicles rather than new cars because insurance companies consider younger motorists to be riskier behind the wheel. If they’re driving vehicles that are cheaper to repair or replace, this can help balance out the higher rates that come with insuring motorists who recently acquired their driver’s license.
Who Should Consider Family Car Insurance?
Anyone with multiple vehicles and several drivers in their household should consider a family or multi-car insurance policy. The discounts that often come with multi-car policies can help offset the more expensive premiums you’ll get from adding a teen driver to your car insurance.
Benefits of Family Car Insurance
Along with the cost savings you unlock when you combine vehicles and drivers on one auto insurance policy, you can take advantage of the following additional benefits:
- You pay only one deductible if you file a claim, even if multiple vehicles are damaged in one incident
- Some states allow you to combine coverage from multiple vehicles to pay high repair bills
- The convenience of one payment and due date
Family Car Insurance Cost and Discounts
According to cost data from Quadrant Information Services, the average annual insurance premium for a teen driver is often three to four times the annual rate for a 35-year-old driver with good credit and a clean driving history. In fact, the nationwide average full-coverage car insurance rate for a 16-year-old driver is just over $6,900 per year, compared to $1,785 per year for 35-year-olds.
The table below shows how average rates vary by age for drivers on their own policy.
Car Insurance Discounts
Whatever types of vehicles are on your family policy, you can take advantage of any available car insurance discounts. These are a few of the most common discounts families should ask about as they compare car insurance quotes:
- Good student: Insurers view young drivers with good grades as a lesser risk than teens with worse academic performances. If you have a teenager with a GPA of 3.0 or better, you might qualify for significant savings through a good student discount.
- Safe driver: Some companies offer good driver discounts for those who don’t have violations or file claims for a certain length of time. You can also participate in telematics insurance programs that monitor your driving and reward you for safe habits behind the wheel.
- Defensive driving: Many insurance companies offer discounts for completing defensive driving courses. This type of training can be especially helpful for young drivers without much experience on the road.
- Multi-policy: Having your auto, home and life insurance policies with one company can lead to savings.
Factors That Affect Car Insurance Rates
Insurers consider several factors when setting auto insurance coverage rates. Age, gender, marital status, driving record and credit score are a few of the criteria used to determine premiums. For family car insurance policies, information for every driver and vehicle is considered.
Recommendations for Family Car Insurance
In our team’s review of the auto insurance industry, State Farm, Geico and Progressive stood out for their variety of coverage options, low rates and range of discounts.
*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.
#1 State Farm: Editor’s Choice
State Farm is the most popular car insurance company in the U.S. according to the National Association of Insurance Commissioners (NAIC). The company boasts an A++ financial strength rating from AM Best and an A+ from the Better Business Bureau (BBB). Families can save as much as 20% on their premiums through State Farm’s multi-car discount. The company also offers discounts for completing defensive driving courses and adding additional safety features to your vehicle.
Keep reading: State Farm insurance review
#2 Geico: Affordable for Most Drivers
Geico offers affordable rates and a variety of discount opportunities. Its multi-vehicle discount is especially generous, as drivers can save up to 25%. Geico also offers discounts for policyholders who remain accident-free for five years, good students and those who bundle homeowners or renters policies with their auto coverage.
Keep reading: Geico insurance review
#3 Progressive: Low Rates for High-Risk Drivers
Progressive is another popular provider that stands out for its available discounts. The company offers discounted rates for drivers 18 and under, along with a multi-car discount of around 4%. Progressive also offers a discount for being a homeowner, even if your home insurance policy is with another company. Progressive’s Snapshot® usage-based program can help safe drivers earn additional savings as well.
Keep reading: Progressive insurance review
Family Car Insurance: Conclusion
Family or multi-car insurance policies are good options for households with multiple drivers under one roof. These policies are especially helpful for families with teen or elderly drivers who insurance companies see as high-risk motorists. The many discounts available make it easier to save money — even with more names on your policy.
We recommend getting auto insurance quotes from multiple insurers or speaking with several insurance agents to compare your options and find the best coverage for your family’s needs.
Family Car Insurance: FAQ
Below are frequently asked questions about family car insurance.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
*Data accurate at time of publication.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.