Other Than Life (OTL) Practice Exam

What is true regarding coverage for multiple vehicles on a single policy?

1. Multiple vehicles cannot be insured under one policy

2. It is possible to insure more than one vehicle on the same policy

3. Each vehicle must have its own separate policy

4. Only vehicles registered at the same address can be combined

The correct answer is: It is possible to insure more than one vehicle on the same policy

Insuring multiple vehicles on a single policy is a common practice in the insurance industry, as many insurers offer multi-car discounts. This allows policyholders to consolidate their coverage, often resulting in lower premiums compared to having separate policies for each vehicle. By putting more than one vehicle on the same policy, policyholders benefit not only from cost savings but also from simplified management of their insurance. Typically, this means one renewal date and one payment for multiple vehicles, which can enhance convenience. While some restrictions may apply, such as ensuring that the vehicles are eligible for coverage under the same terms, it is clear that a single policy can cover diverse vehicles owned by one individual or household. This approach is favored for its efficiency and practicality in managing multiple assets.