If you’ve just purchased a new vehicle or you want to insure an old car, you can update your current auto insurance policy to include the additional vehicle. The process is actually quite easy, and it may not even raise your premiums, depending on your insurer and personal situation. Learn more about adding a car to insurance in this comprehensive guide.
How to Add Another Vehicle to Your Auto Insurance Policy
Usually, it only takes several minutes to add a vehicle to your existing auto insurance policy. To get started, you’ll have to contact your auto insurance provider. In some cases, you may be able to list another car on your policy through your insurer’s website or mobile app. Also, you can get in touch with your insurance agent by going to their office or making a phone call.
When you’re adding a new vehicle to your current auto insurance policy, you’ll have to provide some information about your policy and the vehicle you’re planning to insure. This information includes:
- Your auto insurance policy number
- Make, model, and year of your vehicle
- Vehicle identification number of your vehicle
- Your license plate number
Will Your Car Insurance Costs Increase If You Add Another Vehicle?
Adding another vehicle to your existing auto insurance policy may increase your auto insurance costs. However, it’s often more cost-effective than having a separate policy for each vehicle and paying multiple premiums. According to Policygenius, many leading auto insurance providers offer multi-vehicle discounts to customers who insure more than one vehicle on the same policy. This is because they want to reward customers who stay loyal to them.
How Does a Multi-Vehicle Discount Work?
Generally, if you insure two or more vehicles with the same insurance company, you’ll be eligible for a multi-vehicle discount. With this discount, you can save 10 to 25 percent on your liability, comprehensive, and collision coverages for each vehicle.
Should You Add Another Vehicle to Your Auto Insurance Policy?
Adding a vehicle to your current car insurance policy may not always be the best option. In some cases, you may be better off buying a separate policy. Generally, the advantages of having more than one car on a single policy outweigh the disadvantages. According to Bankrate, the biggest benefit is the lower cost of coverage since multi-vehicle policies usually come with a discount.
What Are the Pros and Cons of a Multi-Vehicle Policy?
Instead of making a decision based on cost alone, you should also consider the following pros and cons of a multi-vehicle policy:
- Pay one bill
- Easier to manage insurance for all vehicles in one place
- More savings through multi-vehicle discounts as you add more cars
- Need to pay insurance bills for all your cars at the same time
Below are the pros and cons of getting separate policies for multiple vehicles:
- Insurance bills for your vehicles may be staggered if you set up different renewal dates
- Ability to choose different coverages for each vehicle
- Need to manage different payment due dates
- Probably higher overall car insurance cost
What Coverage Should You Buy for Your New Vehicle?
You also have to decide how much auto insurance coverage you want to purchase for the additional vehicle. When you’re adding another car to your auto insurance, the vehicle doesn’t automatically take on the same coverages as the other cars on your policy.
The auto insurance coverage you need to purchase for your new vehicle should at least meet the minimum car insurance requirements in your state. The required coverages usually include liability bodily injury coverage and liability property damage coverage and sometimes uninsured motorist coverage as well. Liability coverage protects you from losses that result from the injuries and property damage you cause in an at-fault accident. Uninsured motorist insurance covers your damages if an uninsured driver hits your vehicle.
If you’re responsible for causing an accident and the resultant damages exceed your minimum coverage limits, you’ll have to shell out the remaining amount from your own pocket. To avoid having to pay for damages yourself and protect your assets following an at-fault accident, CarInsurance.com recommends that you purchase a policy with the following coverage limits:
- $100,000 for the medical expenses of each individual you injure
- $300,000 for the medical bills resulting from the accident
- $100,000 for the property damage you cause to other drivers
If your vehicle is less than 10 years old, you may also want to consider buying optional coverages such as comprehensive coverage and collision coverage. If you’re financing your car, your lender will probably require you to have both of these coverages. Comprehensive coverage offers protection against damage or loss from hail, fire, flooding, vandalism, and theft, while collision coverage pays for damage to your car in an accident. Insurance companies allow you to buy comprehensive and collision coverage for a particular vehicle but not multiple vehicles. So, you need to make a separate decision for each car.
Bear in mind that adding another car to your policy can affect your auto insurance costs. The amount of increase in your premiums may vary depending on a number of factors, including your insurer, the type of vehicle you’re adding, your driving record, and your ZIP code. If you’re planning to add a teen driver to your car insurance, along with the vehicle, you can expect your rates to rise dramatically. However, you can take certain measures to reduce your premiums.
In addition, your auto insurance provider may want you to buy the same amount of liability insurance for every vehicle on your policy. Then again, coverages such as comprehensive coverage and collision coverage are often set differently for different vehicles on the same policy.
Adding another car to your existing auto insurance policy can be more cost-effective and convenient compared to getting separate policies for different cars. However, if you want to be able to customize coverage for each vehicle, it may be better for you to buy multiple policies. Shop around to find an auto insurance solution that perfectly fits your needs.
Check this out if you need additional information, resources, or guidance on car insurance.
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