The easiest and cheapest way of insuring a new auto may be to add it onto an existing policy. This may be a preferred option from the administrative point of view as well. You may not want to deal with separate schedules, renewal dates and carriers. We will look at various options and costs on this post to clarify the position.
Adding a car to an existing insurance is one of the options available to motorists. However, it depends on personal circumstances if it is the most suitable solution or not. You can read on this further down. This does not have to be an automobile. The same principle may apply to a truck or even RV with some companies.
Depending on where you live it may be possible to cover a partner’s auto under your insurance or have a joint one for all vehicles together. It is worth pursuing if this is the arrangement you prefer.
Remember that two different types of drivers can do better with different carriers as each company has preferences as to which type of risks they like and want to avoid. Trying to bundle them together may not work as well as you may have expected. Usually, a 10% discount from an expensive company wouldn’t mean much when you can get 50% from somewhere else. So, you should have a habit of checking prices.
Adding an Auto to Existing Insurance vs. Buying a New Policy
There are so many variables going into the equation here. However, If you are allowed by the state or the carrier it may be pretty straightforward to include another vehicle to a policy you already have. If you are the only listed driver for both of them, you could see why the extra premium for adding the second car to a current insurance policy would be fairly cheap.
This doesn’t mean that it will always be the case. For example, if you have a teenage driver to insure and your current carrier doesn’t like this fact, they will make it known by offering a higher than expected quote. Perhaps the best thing to do is to treat it like arranging from scratch and always check the costs for both options.
Otherwise, you may be able to claim discounts for individual plans by mentioning that the car is in the household of a current policyholder. Another option may be that you keep them separate. In that case, ask if they can offer lower rates for each one. Most companies are happy to give about a 10% discount for a second vehicle coming from the same household.
This would be extra helpful when the state requires that the name on the insurance policy schedule must match the name on the registration documents. In that case, if you don’t want to own the vehicles jointly you may have to arrange separate coverage.
In any case, you should always get alternative quotes from others. You can find cheap full coverage on the market or on our platform above. Just because the current carrier offered you a very good deal on the family sedan doesn’t mean that it will offer a competitive quote for any type of vehicle. You can only know how competitive they are if you compare quotes.
As for the costs, you can find out what is the cheapest car insurance to get. This post explains the basic liability only and full coverage and their differences in terms of protection and costs. You will also see the average premium expenditure for both in there. There is no point repeating it here.
Reasons for Adding another Car to an Existing Insurance Policy
People’s personal circumstances change all the time and they need temporary or permanent solutions. If you want to arrange a temporary insurance for a car you may like the idea that you can add it onto an existing coverage until the next renewal and cancel later if you do not need it anymore. In that case, you would only pay the premium up to the end of the term.
Here are some of the reasons why you may need to add a vehicle to insurance already in place.
– Getting married or living with a partner is the most common reason for wanting to have one more auto in there.
– Buying a car for a teenage child is another reason. This may be a much cheaper option than buying an independent coverage for him/her. You may have to own the car to be able to include it in some states.
– Purchasing a truck, RV or classic car can bring up the question. For example, having a classic car by itself may be expensive but including it in another car’s insurance policy may be reasonably cheap. They will have no problem seeing that you can only drive one of them at a time.
– Caring for a vehicle for the moment either by contract or private arrangement.
Points to Consider When Adding an Auto to Existing Insurance
– The required information will be the same as the first one. You will need to tell the agent the details of the vehicle, who will drive it and where it will be kept.
– You do not have to have the exact same protection. You can buy less or more for the new automobile. If the first auto has full coverage the second one can be Liability only.
– It may be possible to include RVs, camping cars and semi-commercial vehicles. Just ask the agent about the possibilities.
– In most cases, the extra premium you need to pay for including the second car to a current insurance would be cheaper than having two separate policies. Companies appreciate another piece of business and reduced administration expenses.
– There are products that may allow you to have a home, second property, first and second car under one package. These products can be very economical and you do not need to worry if a loss is covered by your home or auto insurance.