Getting Cheaper Insurance Coverage for a Second Car

Covering a second car on your auto insurance policy can raise your rates, but it depends on your driving record and the age and driving record of other drivers on your policy. You can save 25% in multi-vehicle discounts.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Apr 14, 2022

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Here's what you need to know...

  • Can I put a second car on my insurance? You can if the vehicle will be parked and registered at the same address.
  • Even though there is extra cost involved when getting a second car covered, there are still ways to help buffer the expense, like discounts
  • If you can pay completely in cash for the second car, you won’t have to get comprehensive coverage
  • How much does your insurance go up when you add a car? When choosing a second car, remember that the more reliable and inexpensive the car, the lower your premiums become.
  • Getting a multi-vehicle discount from your insurer can save as much as $250 off your car insurance rates

Understanding your car insurance policy is paramount when it comes to insuring a second vehicle. Getting insurance coverage for a second car 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.

Covering a second car on your car insurance policy certainly adds cost, but rest assured you can find cheap car insurance for young drivers.

How much does adding a second car to insurance cost? 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.

Before learning more about getting insurance coverage for a second car, enter your ZIP code above to compare car insurance rates now for FREE for households with multiple cars.

How much does it cost to add a second car to your insurance?

How much does adding a second car or driver to insurance cost? What is the cheapest way to insure two cars?

It’s without a doubt cheaper to insure two vehicles on one policy rather than have two separate policies. How much does your insurance go up when you add a car? That depends on the vehicle.

How much does it cost to add a second car to insurance with Geico, State Farm, or another insurer? 

Multi-Vehicle Car Insurance Discounts

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, etc.

Is it cheaper to put two cars on one policy? The table below shows which companies offer the multi-vehicle discounts and what percentage off you can get for it.

Multi-Vehicle Car Insurance Discount by Company
CompanyMulti-Vehicle Discount AvailableMulti-Vehicle Discount Percentage
21st CenturyYesn/a
American FamilyYesn/a
Country FinancialYes15
Liberty MutualYes10
Safe AutoYes15
State FarmYes20
The GeneralYes15
The HanoverYes5
The HartfordYes5
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There are many other types of programs you can look into 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 wallet as you initially thought.

For example, if your first car is getting older, you may want to raise the car insurance deductible, 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.

The Insurance Information Institute lists these requirements by state, but again these minimum requirements don’t cover your vehicle, only damages to a car you might be at-fault for damaging.

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, for cars that are barely driven, some car insurance policies have 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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Can I have two cars insured at the same time?

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 one to two years away. The price of car insurance for a 16-year-old is notoriously high.

In this video from the Insurance Institute for Highway Safety, the IIHS gives some advice to parents when choosing a vehicle for their teen.

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.

How do I add another car to my insurance?

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.

If you’re thinking about getting insurance coverage on a second vechicle added to your policy, take the time now to compare FREE car insurance quotes of reputable insurance providers by typing in your ZIP code below.

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