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Written byJ.J. Starr
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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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Table of contents
You can have as many cars under your name as you can afford as long as you have space for them and follow your local and state regulations. In the U.S., there’s an average of 1.2 cars for every licensed driver. Most people who own more than one car choose to do so for practical reasons, like having different vehicles for different family members.
But managing multiple vehicles comes with additional responsibilities, such as finding car insurance, registration, and financing. Things get complex (and expensive) quickly. Plus, rules from your municipality and insurer can affect your plan.
We’ll cover everything you need to know about owning, insuring, and registering multiple vehicles — plus how to navigate potential restrictions and save money.
How Many Cars Can You Register Under Your Name?
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Federal law doesn’t limit the number of cars you can register under your name, and most U.S. states don’t set limits, either. Still, state laws and department of motor vehicles (DMV) requirements vary.
Municipalities often restrict the number of vehicles someone can park on their lot. For example, in Irving, Texas, residents can’t have more than six cars. Insurance companies also typically limit the number of cars you can put on a single policy.
If you own or want to own multiple cars, you should develop a strong understanding of your local regulations to ensure smooth vehicle registration and compliance with local laws. It’s also a good idea to work with an agent to get the best coverage.
Pros and Cons of Owning More Than One Car
Owning more than one car has both advantages and disadvantages. Some pros and cons to consider include:
Pros
Convenience: Owning multiple cars allows flexibility for households with different schedules or needs, reducing the hassle of sharing one vehicle.
Specialization: You can choose different vehicles for different purposes, such as a fuel-efficient car for commuting and a larger SUV for family trips.
Resale value: Keeping a second car can help reduce the wear and tear on your main vehicle, which might boost its resale value.
Backup vehicle: Buying an extra car means you always have a backup in case one vehicle needs repairs or maintenance.
Cons
Increased costs: Owning more cars means spending more money — especially on new vehicles, where sales tax and title transfer fees increase annual costs to $9,282, according to AAA.
Parking issues: Finding parking space for multiple vehicles can be challenging, especially in urban areas or communities with an HOA.
Vehicle depreciation: Cars lose value over time (especially luxury vehicles), so owning more than one results in more overall depreciation.
Environmental effects: Cars can negatively affect the environment in many ways, including increased carbon emissions and global warming.
How to Insure Multiple Cars Under One Policy
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Insuring multiple cars under one policy is a convenient way to manage your auto insurance — and it’ll typically lead to lower rates, too.
Most insurers allow you to cover up to four or five vehicles on a single policy, but this limit varies by company. Multi-car insurance policies group all your cars under one policy, which typically discounts your insurance premiums between 10% and 25% (some companies may offer even higher discounts).
Typically, to qualify, you must register every car on the policy to the same address. Register your car with the DMV office by showing proof of ownership, like a bill of sale or original title. And, to verify registration, you’ll provide details to your insurer, like the vehicle identification number (VIN) and license plate of each vehicle.
Consider speaking with an insurance agent to ensure you get the best deal and understand all requirements. You may need to purchase an additional policy if you own more cars than your insurer allows on one car insurance policy.
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Can you have multiple car insurance policies under your name?
Yes. You can have multiple car insurance policies under your name, but there can be restrictions. You generally don’t want to insure the same vehicle with two separate policies from different insurers — it can lead to claims processing complications. Insurers may also limit how many policies they’ll insure under your name.
But you can have different policies for separate cars you own. People in the same household can also have their own policy for their respective vehicles. Still, it’s often more cost-effective to combine policies under a single insurer for a multi-car discount.
What to Consider When Insuring Multiple Vehicles
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When insuring multiple vehicles, it’s important to balance your costs and coverage needs. Depending on the types of cars you own and how you use them, you may need a mix of basic and specialized policies. Below are key factors to consider.
Minimum-coverage requirements
Most states require you to have minimum liability coverage to protect others against injuries and property damage in an accident you cause. Insurance experts also recommend getting personal injury protection (PIP) and uninsured motorist (UM) coverage.
Both PIP and UM protect you and your passengers in accidents in which someone doesn’t have insurance or doesn’t have enough coverage to cover your medical costs and damages.
Comprehensive coverage
Comprehensive insurance covers non-collision events like theft, fire, and vandalism. You should have this coverage for any vehicle that you also have collision insurance for. Comprehensive coverage on its own (aka a comprehensive-only policy or parked-car insurance) is generally useful only if you have a vehicle in storage.
Classic car insurance
If you own a collector or classic car, specialized coverage is necessary. Classic car policies typically cover vehicles over 20 years old and meet specific usage limits. Insurers like Hagerty and American Collectors offer coverage tailored to classic cars, often with agreed-value coverage, ensuring you have protection for the car’s total value.
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FAQs About Having Multiple Cars in Your Name
If you own multiple cars or are considering buying or leasing more, understanding the regulations around car ownership is essential. Here are common questions about having multiple cars in your name.
How many cars can you finance in your name?
While there’s no legal limit to how many cars you can finance, lenders assess factors like income and debt-to-income ratio, which can influence the company’s decision to approve your loan. Lenders approve each loan separately.
How many cars can you register at your address?
Most states don’t limit the number of cars you can register at a single address, but cities and other municipalities might. In any case, each vehicle must meet the registration requirements — such as valid insurance and vehicle inspections — for you to register it.
How many cars can you sell without a dealer’s license?
The number varies by state, but generally, you can make a private sale of around three to five cars per year without needing a dealer’s license. For example, you can sell up to three vehicles in Massachusetts in one year, but you must get a dealer license if you plan to exceed that.
Does having two cars increase car insurance?
Yes. Insuring two cars typically increases your premium. The good news is that many insurers offer multi-car discounts, which can reduce the overall cost compared to having two separate policies.
Can you lease multiple cars?
Yes. You can lease more than one car as long as you qualify based on your credit, income, and debt-to-income ratio. Leasing multiple vehicles works similarly to financing, with each lease agreement reviewed and approved independently.
Sources:
U.S. Department of Transportation Federal Highway Administration, “Highway Statistics Series, Highway Statistics 2022,” accessed September 12, 2024.
Mass.gov, “Private Party Used Car Sales,” accessed September 12, 2024.
AAA, “Average Annual Cost of New Vehicle Ownership,” accessed September 13, 2024.
City of Irving, “Ask Code Enforcement FAQs,” accessed September 12, 2024.
Experian, “How Many Cars Can You Insure on One Policy?,” accessed September 12, 2024.
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J.J. StarrInsurance Writer
J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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