Adding a Second Car to Your Insurance: What You Need to Know

Adding a second car to your auto insurance policy is a significant decision that can impact your finances and coverage. Whether your family is expanding, a new driver is joining the household, or you simply want to streamline your policies for greater convenience, it’s essential to understand the implications. At O1ne Mortgage, we aim to provide you with the best mortgage services and advice. For any mortgage service needs, feel free to call us at 213-732-3074.

How Much Does It Cost to Add a Second Car to Insurance?

Insuring a second vehicle can increase your premium by an average of $1,185 per year, according to Policygenius. However, the cost can vary significantly based on several factors. Insurers consider the model year, make, and model of the vehicle, as some vehicles are more expensive to insure due to their higher market price and limited replacement parts’ availability.

Your location also plays a significant role in calculating your premium. If you live in an area with a high claim probability, whether due to population density, vehicle theft, vandalism, or poor transport infrastructure, you can expect to pay more to insure your vehicles. Additionally, the driving history of the drivers listed on the policy is another crucial factor. Depending on their claim history and likelihood of filing a claim, your quoted premium will differ.

What Is the Cheapest Way to Insure Two Cars?

Insuring two cars on a single policy is usually a cheaper option than insuring them separately because of multi-vehicle discounts. Insurance companies offer as much as a 25% discount for insuring more than one vehicle under one policy. This approach also makes it easier to keep track of your insurance and consolidates your premium into one bill.

How to Add a Car to Your Insurance

When adding another vehicle to your insurance policy, follow these steps:

Contact Your Insurance Provider

Reach out to the party servicing your policy. In most cases, it is your current insurance company, but it may be an agency if you found your policy through an independent agent.

Gather Vehicle Information

Collect all the necessary details about your vehicle, such as its year, make, model, and vehicle identification number (VIN). It’s also important to know the current odometer reading and your expected annual mileage.

Provide Driver Information

If you are adding a new driver to the policy along with the vehicle, be sure to get their details, including their full name, marital status, date of birth, and driver’s license number.

Determine Your Required Coverage

If you are already certain of the coverages you would like on your new vehicle, include them when requesting the vehicle addition. If you are unsure, consult the representative servicing your policy. They will be happy to advise on how to tailor the coverage to your needs.

Set a Start Date for the Policy

Inform your agent or the insurance company representative of when you would like the car addition to be effective. If the vehicle was just purchased, selecting the purchase date as the effective date would be optimal.

Review the Policy Changes

Before changing your policy, ensure you understand how adding the car will affect your rate and coverage amounts before proceeding with the change.

Process the Change

After providing all the details and reviewing the policy endorsement, ask for the change to be processed. Depending on the company, you might need to wait up to 24 hours to get your newly generated policy documents, as sometimes the changes need to go through underwriting approval first.

How Many Cars Can You Have on Your Insurance Policy?

Insurers typically have varying guidelines on the maximum number of vehicles you can insure on a single auto policy. Most insurance companies allow up to four vehicles to be listed in an individual insurance policy. To determine how many vehicles you can list on a policy with a specific insurance provider, it’s best to consult a licensed insurance specialist or the insurance company directly to get clarity on their limits.

The Bottom Line

When adding a second vehicle to your policy, it’s important to consider the impact on your rates and coverages. Insuring both your vehicles on a single policy can be cost-effective, with potential multi-vehicle discounts. Knowing your options is key when finding the best policy. Shopping around to compare offers from different insurance companies is a great way to ensure you’re making a well-informed decision.

At O1ne Mortgage, we are committed to providing you with the best mortgage services. For any mortgage service needs, call us at 213-732-3074. Our team of experts is here to help you navigate your options and find the best solutions for your needs.