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Which insurance companies offer the lowest rates for a vehicle?

Why do vehicle liability insurance rates go up when you own more cars since you can only drive one of them at a time?

  • I currently have an old car I need to sell, but in the meantime I am still paying the exact same liability insurance on it while it sits parked in my driveway as I did when I drove it every day. The probability of being in a collision is proportional to how much time I spend driving, now how many cars I own. I can't simultaneously drive two cars. I suppose there is some tiny increase that by having a backup car I can be in a collision immediately after being in a collision, but that wouldn't account for doubling the premium. Are there any insurance companies that bill this sanely?

  • Answer:

    Richard has it right... as the owner of a vehicle you are vicariously liable for the actions of any person that is in lawful possession of that vehicle.  Because of this vicarious liability the insurer's exposure is increased by the amount of vehicles you OWN, not the amount of vehicles you operate at any given time.

Craig Anderson at Quora Visit the source

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Mostly insurance companies would treat your car individually even if it has one registered owner. Even if it only driven once in a while, you have to realize that each one of your cars are actually exposed to the same risks as the others. Perhaps you can just go ahead and allow yourself to find an insurance company that would grant you significant discounts on multiple coverage. Find an insurance that will provide this to you and if you are in California, you can check out http://www.dmv.com/ca/california/auto-insurance/1.

Jonard Golle

That parked car can also be stolen or damaged while parked. Hurricanes, tornados, wind storms, fires, floods... they all take their toll on parked cars.

John Burgess

Both cars could be driven at the same time by two different people.  I don't know if this is the Insurance Agency's thinking but it would be mine.

John Freeman

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