How to add a car to your insurance policy

There was 1.88 vehicles per household in the United States in 2017, according to the United States Department of Transportation. If you already own a car and are planning to buy another, you will need to insure your additional vehicle. If you already have a current auto insurance policy, adding an additional car is usually possible. Although some companies insure vehicles on a one-vehicle-per-policy basis, many national and regional carriers allow policyholders to insure multiple vehicles on a single policy, with a typical limit of four drivers and four vehicles on the same policy. . If your insurance company allows it, you will be able to add your additional vehicle (s) to your existing policy and might even get a significant discount for it.

How to add another car

Adding a vehicle to an existing auto insurance policy is a straightforward process that usually only takes a few minutes. To get started, you will need to contact your insurer or agent. You may be able to add your vehicle to your policy by going to the insurer’s website or through their mobile app, but you can also contact your insurer or agent by phone or by going to your agent’s local office to do so. change in person.

Adding another car won’t require as much information as you needed to provide to set up the initial policy. You will need details of the new vehicle and an idea of ​​the type of coverage you want. Your agent can help you determine the most appropriate coverage for your additional vehicle. Many consumers typically choose similar levels of coverage on all of their vehicles.

As long as you have all of the vehicle information you need, you can usually get coverage for your additional car as quickly as the same business day.

What information do I need to add a car?

Before calling your insurance company or visiting your agent, gather the following information to insure an additional vehicle:

  • Vehicle year, make and model
  • Vehicle Identification Number (VIN)
  • Estimated annual mileage

If your vehicle is financed through a loan or lease, you will need to provide your insurer with the lender’s information.

Why should I add another car to my insurance policy?

You may not have to add a vehicle to an existing policy. In some situations, you may be advised to purchase a separate policy.

The advantages of insuring more than one vehicle on a single policy may outweigh the disadvantages. The biggest benefit is the cost of the coverage – multi-car policies generally offer a discount to the policyholder. But before basing your decision purely on saving money, consider the following pros and cons:

Advantages The inconvenients
Multi-car policy The more cars you add, the more you can save with multi-car discounts
Easier to manage in one place
Pay a single bill covering all police vehicles
The premium for all your vehicles will be due at the same time
Separate policies Get separate invoices and different payment dates
You can select a different coverage for each vehicle
May be more expensive to insure each vehicle separately
You will need to manage separate invoices and due dates

Some insurance companies may not give you the option of insuring your vehicles on one policy or on separate policies. If you are unsure of how to cover your additional vehicle, call your company or agent to discuss your options.

Does adding a car to my policy affect my rate?

Adding an additional vehicle to your existing auto policy will likely increase your premium.

Fortunately, most insurance companies offer a multi-car discount which can help offset the cost of adding another vehicle. To make sure you get the best auto insurance rates, look for multi-car coverage to compare quotes.

How to choose covers when adding a car

The first step in choosing coverage for your additional car is to decide whether you need minimum coverage insurance or full coverage insurance. Most states require a minimum amount of liability insurance in order to legally drive.

The average cost of auto insurance in the United States is $ 565 per year for minimum coverage and $ 1,674 per year for full coverage. Minimum coverage may be cheaper, but purchasing higher limits and full coverage has its advantages.

Minimum coverage insurance includes only the coverages required by your state, usually personal injury and property damage liability and occasionally uninsured motorist coverage. This type of coverage covers the damage you cause to a person and their vehicle in the event of a responsible loss. Uninsured / Underinsured Motorist coverage pays you for your damages if you are struck by an uninsured or underinsured driver. If you cause an accident and the damage exceeds your minimum coverage limits, you will have to pay the difference out of pocket.

Liability insurance will not pay for damage to your vehicle; you will need full coverage for this. Full Coverage Insurance includes Third Party Liability as well as All Perils and Collision Insurance, which covers damage to your own vehicle. Collision insurance covers damage to your vehicle caused by collisions, such as with another vehicle or object. Comprehensive coverage covers damage caused by inclement weather, theft, fire, vandalism or striking an animal. If you have a loan or lease for your vehicle, you will likely need to purchase comprehensive coverage.

Frequently Asked Questions

Does adding a car to my contract increase my rate?

Adding a vehicle to your policy will likely increase your premiums. However, you may be able to reduce your fares by taking advantage of multi-car discounts. Be sure to speak to your agent to find out what discounts may be available to you.

Can I add a car to my online policy?

Many large insurance companies allow you to add a vehicle to your policy through their website or even through their mobile app. Adding a vehicle online is convenient. However, adding a second car to your online policy is not always beneficial. You might miss out on discounts or coverage options that an experienced agent or representative might recommend.

How long does it take to add a vehicle to my policy?

All states have auto insurance regulations for driving legally. It can be difficult to schedule your coverage for exactly when you receive the keys to your new vehicle, but insurers are trying to make the transition as smooth as possible. You can provisionally set up coverage in advance for the additional vehicle and add an effective date for the start of coverage. Or you can call your insurance company or agent when you have the keys and ask them to insure your vehicle the same day. In most cases, your carrier should be able to process your request and make coverage effective immediately.


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Justin D. O'Neill