Here’s everything you need to know about multi-car insurance and what it covers.
Adding cars to your policy will increase your rates, but you can get a discount on premiums by sheltering multiple cars under the same policy. For instance, you just bought your 16-year-old a car and are considering initiating a separate policy. However, when it comes to car insurance, bundling is better.
You can add a car to your insurance policy by following these simple steps:
|AARP (The Hartford)||https://account.thehartford.com/customer/#/login?appid=CSC&goto=https:%2F%2Fservice.thehartford.com:443%2Fservice%2F||877-896-9320|
|GEICO||https://ecams.geico.com/express?action=ET04||Contact agent directly|
|Lemonade||https://www.lemonade.com/login#email||N/A (emergency number)|
|National General (formerly GMAC)||https://eservice.nationalgeneral.com/service?_ga=2.135414769.1121629807.1645543547-1647411251.1645543547||800-325-1190|
|Safeco||https://customer.safeco.com/accountmanager/account/login||Contact agent directly|
Adding a car to your insurance policy will make your overall rates increase. However, it’s still cheaper than getting a separate policy for your new car1.
Even though your car insurance costs will be more expensive the more cars you add to your policy, you can get discounts on coverages by bundling multiple cars under the same policy. Under a schedule of vehicles policy — a policy that covers up to five cars — typically companies offer multi-vehicle discounts.
If you want to receive a multi-vehicle discount, all cars must be registered from the same address, or the other person on your policy must be an immediate family member.
Here’s a breakdown of what you can and cannot add to your current policy.
If you have a second car at the same residence, you can add it to your policy.
You can only add a friend’s car to your policy if you live at the same residence where the friend keeps their car. The friend must also be listed as a driver on your policy.
Whether or not you can add your significant other’s car to your policy depends on how often they use it and if you live together. If you live together where the vehicle is kept, you should be able to add the car to your policy. However, if you don’t live together and you don’t drive the vehicle often, you won’t be able to put their car on your policy.2
If you need to add a car to your policy temporarily, we recommend purchasing a six-month term or pay-per-mile insurance, and then canceling your car insurance. Major car insurance companies don’t offer temporary policies. If you don’t own the car you’d like to add, look into non-owner car insurance. Typically, non-owner insurance costs less than standard coverage.
You can add a car to your policy if it’s not in your name, given you live with the owner who keeps the car at your residence.
You can add both new and used cars to your existing policy. Before you add it, your new or used vehicle will have the same coverage as your current one. Make sure you add it within your insurer’s time frame of within one week to one month from the purchase date.3
What are the benefits and disadvantages of adding a car to your current policy versus getting it its own separate policy?
A DUI on your driving record increases your car insurance prices by 80 percent on average.4 Learn more from our DUI research.
Whether you choose to add a vehicle to your existing policy or cover it under a new one, make sure you have your state’s minimum coverage to comply with car insurance laws. Additionally, we recommend buying full coverage for more protection against financial liability for damages and injuries. See below for the types of coverage and limits that are required when you add another car to your existing policy.
|Coverage type||Party whose losses it covers||What it covers||Recommended coverage limits||Deductible included?|
|Property damage (liability)||Other party||Property damages||$500,000||No|
|Bodily injury (liability)||Other party||Medical costs||$500,000||No|
|Uninsured motorist||You||Property damages and medical costs||$500,000||No|
|Medical payments||You||Medical costs||$500,000||No|
|Personal injury protection||You||Medical costs, lost wages, child care||$500,000||No|
|Collision||You||Damages from collisions||Actual market value of car||Yes|
|Comprehensive||You||Damages from incidents other than collisions (e.g., weather, car theft, vandalism)||Actual market value of car||Yes|
Even though adding a car to your current policy will raise your rates, here are some tips to minimize the increase:
Did you purchase a car using an auto loan? Perhaps someone else can insure your car if …
You must meet all of these conditions in order for someone else to insure your financed car.
One of the most frequently asked car insurance questions is how to add a vehicle to your existing policy. If you have multiple cars, bundling them under the same policy is one way to lower your car insurance costs versus separating them under different policies. And who wants to pay more than necessary for car insurance?
Why did my auto insurance costs go up even when I didn’t file a claim? III. (2022).
Multi-Car Insurance: Can I Add Another Car or Driver to My Policy? American Family Insurance. (2022). https://www.amfam.com/resources/articles/on-the-road/who-can-add-auto-insurance-policy
Can I add a car to my insurance policy? Progressive. (2022). https://www.progressive.com/answers/adding-a-car-to-insurance-policy/
DOES AN INTERLOCK AFFECT INSURANCE? Alcolock. (2022). https://alcolockusa.com/faq/does-an-interlock-affect-insurance/