When you already have an insurance policy for one car, it is easy to add a second car to the same policy. When you do, you will need to know how to accomplish this in a way that gets you the best deal.
Owning Two Cars: How Your Insurance Company Sees You
When you own two or more cars, how your insurance company views you depends on how you will be registering the cars with them. There are two primary patterns for how this can be arranged:
a. both cars are listed under your name as the primary driver
b. one car is listed under your name as the primary driver, while the other car is listed under the name of someone else in your household, such as your spouse or teenage child
In the first situation, your insurance company (correctly) assumes that you can only drive one car at a time. In that sense, in terms of the total risk that you represent to the insurance company, the risk to them is about the same whether you own one or two cars.
However, in the second situation, your insurance company knows that the two drivers in your household could easily (and probably will be) driving those cars independently. Therefore, the risk to them is about double when the second car is added to the policy.
Why Insuring Two Cars Is Cheaper
When both cars are under your name as the primary driver, you may be surprised as to the type of deal you can get on your new insurance. In fact, your insurance payments may not go up almost at all by adding the second car. (Of course, this may not be the case if your second car is deemed a high-risk automobile, such as a sports car.)
On the other hand, when the second car is listed on your policy under the name of someone else in your household, your rates could double – again, depending on their driving history, the type of car and other factors.
In any event, when you add a second car, you will want to get the cheapest-possible rate on your car insurance.
3 Tips For Getting The Cheapest Car Insurance: Both Cars Under One Policy
Here are 3 tips for getting the best rate when adding a second car to your policy:
1. Collect important vehicle information for both cars and write it down: To get the cheapest rate, you will need to do some shopping around. Start the process by writing down the VIN (vehicle ID number, found on the dashboard by looking through the front windshield), make, model, and license number of both cars. Have them ready, as you will need to refer to them many times.
2. Create a list of at least 3 insurance companies apart from your current insurer: It will be tempting to just ask your current insurance company for a quote: resist the temptation. By spending just an extra hour or so of your time, you can get three quotes from three companies. You may be surprised at how much they can vary.
3. Make sure to get comparable quotes: When calling around, be sure that you ask for identical types of coverage (collision, medical payments, liability, etc.) and with the same coverage limits when calling each company. That way, you can get comparable quotes to see who has the lowest rate.
Follow these 3 tips to find the cheapest car insurance for adding both cars to one policy.