Buying car insurance for a second vehicle often comes into play when the following scenario occurs. “I passed my driving test!” screams your young driver, and you know it’s the beginning of the end for you and your family in regards to who is going to drive which car.
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You promised your child that if he passed the driving test he would get a car. And knowing that all vehicles in the U.S. have to be insured, how will buying a second car affect your insurance rates?
You have heard daunting tales of woe of how putting your 16 or 17 year old teen driver on your insurance as well as a second car is second only to saving up for college, which is a mere 1 to 2 years away.
But don’t fear, because although there is going to be some extra cost by getting a second car covered, there are still ways to help buffer the cost.
All Car Insurance is Not the Same
In the example above, adding a new driver and a second car to your insurance policy is a bit of a double whammy. While we understand that young drivers (and higher risk drivers) add to the cost of your insurance plan, adding a second car alone does not have to become such a financial setback for you.
If you are simply adding a new vehicle to your existing policy, but the drivers of that vehicle are neither new or at risk drivers, then there are a number of ways you can control the hike in monthly payments.
Process of Adding a Second Car to Your Policy
To obtain car insurance on a second vehicle you want to first call up your current car insurance provider and find out how to add that second car on your policy. Because your car insurance company wants to keep your business, they try to make this process as seamless as possible for you. Usually you can do everything right over the phone, and they will fax or email a temporary policy for your second car.
Of course, you don’t have to stay with your current insurance provider when you buy a second car. Maybe because the person who you are going to insure the car for is a high risk or younger driver, and you are able to find a more competitive rate than what even your own insurance company is willing to provide.
It’s never a bad thing to do your research, shop around, and make some calls to find out what your best options are in regards to insuring your second car. Look for reviews, customer service and satisfaction rankings to make an informed decision.
Lowering the Cost of Car Insurance Coverage
The ways to lower the cost of your car insurance are many. When you do pick up the phone and call your current insurance provider find out if they have:
- Multicar discounts
- Family discounts
- Good student discounts
- Safe driving discounts…
and any other types of programs that can lower the cost of putting a second car on your policy.
While adding a second car will raise your premiums a bit overall, you may be surprised that depending on how you cover one or both vehicles may not put such a large dent in your wall as you initially thought. For example, if your 1st car is getting older, you may want to raise the deductible on that car, which in turn will lower your premiums overall.
You could have one car strictly with liability while the other car that has full coverage. Again, this is a good idea with not only older cars, but cars that are losing their value.
If you can pay completely in cash for the second car, you won’t have to get comprehensive coverage, which is usually required in most states if you finance a vehicle.
If you have a younger or at risk driver, make sure you only put him on one car’s policy, this again will lower you overall premiums compared if you allowed him access to both vehicles. Moreover, if this is a second car to run errands with or for your teenager to drive, simply buy a reliable car and not some snazzy red sports car.
The more reliable and inexpensive the car, the less your premiums become. Lastly, some car insurance policies have for cars that are not driven too much a way to track their mileage by mounting a GPS system to the car and have a “pay as you go” approach to the insurance coverage. You can receive discounts for being within certain mileage limits. By having this sort of insurance, one can drastically reduce adding a second car to his current policy.
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