She believes she's paying less for insurance on her vehicle by also paying for insurance she no longer owns and retaining the multi-car discount. Is she not just overpaying and throwing money away? Having 2 cars on a policy cannot be cheaper than only paying for a policy with just one vehicle, right? What can I tell her to assuage her fears and help her save her money? I do not need or want her to pay for coverage I already have. We both insure through AAA.
MIL sold me a vehicle and I now have a policy on it. However, it turns out she is still keeping it on her insurance policy for the multi-car discount.
byu/Bruhntly inInsurance
Posted by Bruhntly
13 Comments
Shes almost certainly not saving money have insuring it. Unless it’s a super old cheap beater and there are multiple drivers on the policy. Some companies look at the driver to vehicle ratio and occasionally removing a vehicle may cause an increase.
But you really should have her remove it, you can’t double insure a vehicle.
She no longer has an insurable interest in the vehicle. It needs to come off of her policy.
If the car registration/ownership was transferred to you, she’s wasting money because she’s paying insurance for a car she doesn’t own. AAA declarations pages have a premium breakdown by car. Show her that if she take out your car that’s how much she’ll save, yeah she’ll lose the multi-car discount, but that’s like 5%.
Have a multi car discount is sometimes cheaper than having just one. Buy usually it’s more like BOGO 80% off when it’s a really good discount.
I have seen policies where the 2nd car will be under suspended coverage (comprehensive only) and at that point it was cheaper for both to be on the policy than just one.
No one here will really know without quoting the policy with and without the second car, so all you can really do it have her call in or go only and quote her policy with removing the vehicle.
> What can I tell her to assuage her fears and help her save her money?
Someone can go online or talk to an agent and get a quote and see in black and white what it would cost with only one car.
She is almost definitely not saving money. She is definitely not supposed to be doing that, but as long as she doesn’t file any claims, she’s mostly just giving them money.
Your spouse might want to review the bill with their mom—it should be broken out so you can see if the multicar discount is more than the insurance for the car.
Never ever take financial advice from her
She needs to shop around probably change her carrier and a one car policy will be much cheaper. Honestly from the sounds of it she should go to an independent insurance agent to get sorted out with the right policy.
Forget whether or not she’s allowed to maintain a policy on the vehicle because she no longer has an insurable interest in it, I seriously doubt the multi-car discount exceeds the additional cost of keeping it on the policy. She’s confused.
Go online and put enough information into an auto policy quoting engine to spit out a quote just for her one car. Show it to her.
I’m sure you love your MIL very much, but I don’t follow her logic. In any case, if you are both the TITLED owner and the REGISTERED owner, and you have an insurance policy in place, your MIL can do as she sees fit. It no longer impacts you at all.
do the math for her. Explore other discounts, like homeowners, renters, pet insurance.
Try a new insurance provider!
Are there any other young drivers in your MiL’s household?
Sometimes keeping a vehicle covered, (with the very minimum limits), allows a higher risk driver to be assigned there.
Depending on circumstances, this can result in a significant premium reduction.
Morally, it’s a “no go”.