Overhaulin'

Would it save money to divide family members onto two different car insurance companies instead of just one?

We are trying to reduce our monthly car insurance payment. There are 4 adults on the family policy. My 2 kids live at two different addresses. One is 22 and the other is 24. We have a 2000 SUV, a 2006 Saturn, 2001 Toyota Echo, and 1994 Ford Taurus. We want full coverage on all except the Taurus. Would it save to divide the family onto different 2 different policies from 2 different companies?

Public Comments

1. well first you need to understand how your insurance company insures because they don't all do it the same way. some assign each person to a car and others put all driving records together and charge as a bundle. But all require everyone live in the same house so you can't put your kids on your policy if they don't live with you unless you are going to lie about it and if you do you have to be careful. So fist find out how your insurance company insures like what method they use and then determine which method works best for you and see if having to separate company's will benefit you most of the time it doesn't.
2. If there are family members that dont reside at the primary home they may need to be split on there own policy. Be aware that when you seperate homes you will lose multicar and possible multipolicy ( auto-Home) discount. If there are to legitimate homes then I would look to split and create 2 households with seperate insurance. Good Luck
3. No, it wouldn't. Plus, it would limit which vehicles people could drive. Seeing as how your kids live at different addresses, and they're adults, I'd strongly suggest you give them the two older cars, and let THEM pay for their insurance.
4. Very few insurance companies "like" the fact that kids live elsewhere with one of mom & dad's cars. There are too many things out of your control (like roommates using the cars, etc). Since they are adults consider having them get cars and insurance in their own name. If your children or anyone they let borrow the car has a serious accident, YOU get named ina lawsuit and everything you own is on the line. If the kids have cars and insurance in their names only then only their assets are on the line and you are off the hook.
5. Yes, that would probably help reduce cost. You may want to try getting a quote online. I'm paying less than of what I was before. If you want some more information, I would check out... http://insurance.deal4-you.com Take care.
6. In Texas at Farmers that would most likely not help you. At Farmers we rate people on whichever vehicle will be the cheapest for the client, but every person on the policy can drive every vehicle on the policy. That said, if you were to have 2 different companies or policies that you would limit who could drive which vehicles. If your boys dont drive your vehicles that might not be a problem but if you separate them you could also lose discounts as well, for instance the multi-car discount and/or the auto home discount if applicable. We do not recommend people splitting their households up, we actually try to get them combined to get the cheapest price possible for you. If you are in Texas and you have more questions please let me know and I will help you as much as I can!