Adding another car to the household is a big decision, and insurance is the part that tends to sneak up on you. You may be buying a second car for a partner, a teen or yourself, or replacing one with two. Whatever the reason, it is worth knowing how to add a vehicle to your policy, how much it may cost and how to assign drivers so you do not create problems later. This page walks you through it.
Do not wait until the car is yours
Insurance should be in place from the moment you take the car. Many insurers give a short automatic grace period for a newly acquired vehicle on an existing policy, but the length and the coverage differ by company, and you should not rely on it. The simplest approach is to call your insurer before you buy, get a quote using the car’s VIN, and set the start date for the day of purchase. See our guide on how to insure a car before you buy it for the step-by-step.
What your insurer will ask for
- The VIN, make, model and year of the car.
- The registered owner and any lienholder, if there is a loan or lease.
- Where the car will be parked overnight.
- Who will drive it, and how often.
- Annual mileage and how it will be used, such as commuting or pleasure.
- The date the car will come into your possession.
Assigning drivers to cars
When a household has more cars than drivers, or more drivers than cars, the insurer will ask you to name a main driver for each vehicle. Be honest about this. The person who actually drives a car most often should be listed as its main driver, and it matters most with younger drivers, who cost more to insure. Naming a parent as the main driver of a car that a teen drives most of the time is a form of misrepresentation and can cause a claim to be denied. Our guide to insuring a teen driver explains how it works. If someone in your household drives only occasionally, tell the insurer that, so you are rated accurately.
How much will it cost?
A second car almost always raises your total premium, but usually by less than the cost of insuring it on its own. The actual change depends on the car’s value, its safety features and repair costs, who drives it, where you live and the coverage you choose. A cheap used car with liability only will add less than a new vehicle with full coverage. A younger or higher-risk driver will add more. Ask for a quote before you commit to a specific car, since some models cost much more to insure than others.
The multi-car discount
Most insurers offer a discount when you insure more than one vehicle with them. It can reduce the cost per car noticeably, and in many cases it makes one combined policy cheaper than two separate ones. The amount varies by insurer, so compare. If you already have home or renters insurance, bundling it with your auto policy may add a further saving. Our page on auto insurance discounts lists the common ones.
Choosing coverage for the new car
- Liability. Match your existing limits, or go higher. See how much car insurance you need.
- Collision and comprehensive. Needed if the car is financed or leased, and wise for a car you could not replace from savings. Read whether full coverage is worth it.
- Deductibles. They need not match across cars. A cheaper, older car may have a different deductible. See how to choose a deductible.
- Extras. Rental reimbursement, roadside help and gap coverage may be worth it on a newer car. Our page on gap insurance explains when.
If the second car is a special case
- A car you rarely drive. Look at reduced coverage. See parked car insurance.
- A car that is financed or leased. The lender has requirements. See leased car insurance.
- A car you are repairing or restoring. Read project car insurance.
- A car with modifications. See modified car insurance.
- A car inherited or given to you. Our page on inherited or gifted car insurance explains the paperwork.
- A car for a partner. See adding a spouse or partner to your car insurance.
Do not forget the car you are replacing
If the new car replaces an old one, tell your insurer the date of the swap, and make sure that you do not cancel the old car’s coverage until the sale is complete. Our guide on what to do with your car insurance when you sell a car explains how to do it without a gap or a lost refund.
Common questions
Do I have to add the car right away? Yes. Do it on or before the day you take it. A short grace period may apply, but do not depend on it.
Will adding a car make my price double? No. A multi-car discount usually keeps the increase well below the cost of a separate policy, though the exact change depends on the car and drivers.
Can two cars be on different policies? They can, but a single policy is often cheaper. Compare both.
What if the car is only used by one person? Name them as the main driver, and be accurate about mileage and use.
Getting the details right when you add a car saves money and trouble later. Compare quotes and ask each company about its multi-car pricing.
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This page is for general information only and is not insurance, legal or financial advice. Coverage, rules and prices vary by insurer and state.