Although you can’t technically add a car to your family car insurance policy, it is easy to buy a car insurance policy for a second car by simply informing your agent or your car insurance company about it. However, as simple as it is, that may not be your best move.
Before adding a car to your policy, you should shop around for new rates. Most car insurance companies offer discounts for multiple cars on the same policy so this could be a good opportunity to find car insurance at a lower premium. Each car needs its own insurance policy, even if multiple cars belong to the same family.
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Insuring More Than One Car on a Family Car Insurance Policy
If you have a car and you buy a second car, then you will need to add it to the family car insurance policy. Your car will not be automatically covered by your previous insurance policy because each car requires its own insurance. Since this is the case, you technically can’t add a car to the same policy you already have.
Instead, you can buy a second policy and then receive a multi-car discount on each policy.
For example: You own a 2005 Hyundai Santa Fe and you have insurance on it from ABC Insurance Company. While still keeping the Santa Fe you now buy a 2010 Ford Mustang. You can call any insurance company to insure the Mustang, but you are almost always better off buying the insurance policy from the same company that insures your previous car so that you can benefit from the multi-car discount. Therefore, you call ABC Insurance Company and buy a new insurance policy for the Mustang from them. You now have two separate car insurance policies from the same company.
Your multi-car policies can have different coverage, different deductibles, and different premiums. They will most likely renew at different times as well, since the renewal date is based on a set time period from the origination date. Since you are not adding a car to the family car insurance policy but rather buying a separate policy, you can buy your insurance from anyone. However, as mentioned previously, the benefit of buying from the same company offers you greater savings as well as the convenience of only having to deal with one insurance company for all of your car insurance needs.
Adding a Car to my Car Insurance Account Online
Whether you can add a car online really depends upon the car insurance company that you use. In most cases, any company that allows you to get a car insurance policy online will also let you add additional policies to your account online.
You can visit the website of the insurance company you use to see what its policy is regarding online purchases.
There is a benefit to speaking to an agent or a representative from the company that you are using. If you have any questions about your new policy, you will have someone talking you through it on the phone. If you are familiar with insurance terms and limitations, then doing everything online may be more convenient for you.
Before Adding a Car to your Family Car Insurance Policy
Since you can buy car insurance for your second car from any insurance company, this is a good time to shop around to see if you can get lower rates from somewhere else. As stated earlier, there is a financial benefit of a multi-policy discount by keeping both cars insured with the same car insurance company. However, if you buy a second car then you have a good opportunity to get some pricing and compare what your current rate is to what you could be paying if you switch insurance companies.
Before you add that second car to your family car insurance policy, call your agent and ask how much it will cost to insure that new car and also inquire about the multi-car discount. Then get rates from some other insurance companies for the cost of both cars individually as well as together with the multi-car discount.
You may be able to find comparable coverage with the same deductible for a lower premium.
Checking Car Insurance Rates before Buying a Second Car
There is one more factor to consider before buying a second car and adding it to the family insurance policy. That is the cost of insurance for that second car. Whether you are buying a pre-driven vehicle or a brand new car, the cost of your insurance is going to depend heavily on what type of car you buy.
In addition to the age of the car, the make and model will impact the cost of your car insurance. Brand new cars are usually more expensive to insure, but some older models may be equally expensive depending on if they are specialty cars, sport cars, or high theft risk cars. It is a good idea to contact either your agent or any car insurance company and ask for a quote for the type of car you are considering buying.
You may want to inquire about a few different cars so that you have a good feel toward what direction to head. If you have your heart set on a brand new V8 hot rod, but you can’t afford the car insurance, then you may need to consider a smaller more practical family size sedan that is less expensive to insure.
Anytime you are dealing with car insurance, whether it is your first car or your third addition to the family, you should always compare quotes from different insurance companies. By doing an exact comparison analysis, including coverage and deductible for each car, you can get a sense of which insurance company is offering you the best deal for your car insurance. You can get FREE quotes online now by entering your ZIP code below!