How to add a car to your insurance policy
There was 1.88 vehicles per household in the United States in 2017. If you already own a car and plan 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. While some companies insure vehicles on a one-vehicle per policy basis, many allow policyholders to insure a number of vehicles on a single policy. If your insurance company allows this, you will be able to add your additional vehicle to your existing policy.
How to add another car
Adding a vehicle to an existing insurance policy usually only takes a few minutes. To get started, you will need to contact your insurer. You may be able to add your vehicle to your policy by going to the company’s website or through a mobile app, but you can also contact your insurer or agent by phone or by visiting your local office.
Adding another car won’t require as much information as you had to provide to set up the initial policy. You will need details about 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.
As long as you have all of the vehicle information you need, you can usually get additional car coverage as quickly as the same day loans no credit check for sale.
What information do I need to add a car?
Before calling the 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 by a loan or a lease, you will need to provide your insurer with banking 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 the same policy can outweigh the disadvantages. The biggest benefit is the cost of the coverage – multi-car policies usually get a discount. But before basing your decision on savings alone, consider the following pros and cons:
| Benefits | 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 an invoice |
Invoices for all your vehicles will be due at the same time |
| Separate policies | Set different renewal dates so that invoices for each car can be staggered You may be able to set up different coverage for each vehicle |
Maybe more expensive to insure 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 policy will likely increase your premium.
Fortunately, most insurance companies offer a multi-car discount that can help offset the cost of adding another vehicle. To make sure you get the best auto insurance rates, shop 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 to legally drive.
the average cost of auto insurance in the United States, $ 563 per year for minimum coverage and $ 1,738 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 liability for personal injury and property damage and sometimes coverage for uninsured motorists. This type of coverage pays for the damage you cause to someone and their vehicle if you are in a responsible loss. Uninsured Motorist coverage pays you for your damage if you are hit by an uninsured 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 and adds full coverage and collision insurance, which can pay for damage to your own car. Collision insurance covers damage to your vehicle caused by collisions, such as with another vehicle or an object. Comprehensive coverage covers damage caused by inclement weather, theft, fire, vandalism or hitting 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 policy increase my rate?
Adding a vehicle to your policy will likely increase your premiums. However, you may be able to reduce your rates 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 of the larger insurance companies allow you to add a vehicle to your policy through their website. Adding an online policy 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 quickly should I add a vehicle to my policy?
All states have auto insurance regulations for driving legally. It can be difficult to time your coverage when you receive the keys to your new vehicle, but insurers are trying to make the transition as seamless 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 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.
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