Adding a Vehicle to an Existing Insurance Policy: Step-By-Step Guide

February 13, 2024

Adding a vehicle to an existing insurance policy is a necessity for many drivers – for example, if you’ve just purchased a brand-new car or inherited one. Having two cars under the same insurance policy can reduce your expenses while maintaining the desired level of coverage.

In this guide, we will:

  • Walk you through the process of adding a vehicle to insurance
  • Discuss the main types of coverage
  • Provide advice for making the best decision based on your budget and preferences

Read on to learn more about how to add a car to insurance safely.

Why Is Adding a Car to Insurance Necessary?

Here’s a common situation: You’ve just purchased your second car and are wondering whether a new insurance policy would cut it, or you can add this new car to your existing policy for win-win.

The short answer is that adding a vehicle to an existing insurance policy is advantageous when the driver knows what coverage they need for their new car and how the “inclusion” works.

Most insurance companies offer a discount on car insurance for a second car to stay competitive and save on administrative costs.

If you’re interested in adding a vehicle to an existing insurance policy, you should know what to expect:

  • Advantages of insurance on the second car. Many insurance companies provide bigger discounts for insuring more than one vehicle under the same policy.
  • Disadvantages of the 2nd car insurance. Usually, you can’t choose different maximum coverage amounts for different cars if they are listed on one policy.

So, is it cheaper to add a second car to insurance? Yes, it will benefit the insurance company and the driver. Dealing with one company reduces paperwork.

How To Add Another Car To Insurance Policy

Adding another car to insurance is straightforward but requires some preparation. This includes gathering necessary documents, familiarizing yourself with different types of coverage, and setting aside personal time to talk to an insurance agent.

To add a vehicle to insurance, you must first contact your insurance company and inquire about the procedure. You can also do it online.

Adding Car to Insurance Policy Step-by-Step

Obtaining car insurance for a 2nd car may vary depending on the insurance company and your situation. However, there are certain formalities you will encounter in any case.

Step 1 – Contact Your Insurance Agent

You can contact your insurance agency through their website, mobile app, phone call, or in person. At this stage, make sure to gather all relevant information for adding insurance to a new car: the car’s make, model, year of manufacture, VIN, mileage, etc.

Stage 2 – Provide Necessary Information to the Company

The insurance company will ask questions about the new car, your driving habits, and anything they might find valuable to assess risks. Be honest and precise in your answers, as this can affect your insurance terms and the size of the premium.

Stage 3 – Choose the Type of Coverage

You will need to determine the type and level of coverage you want for the new car: liability, collision, comprehensive, or other insurance. Keep in mind that the more incidents the insurance policy covers and the higher the coverage limits, the higher the cost.

Stage 4 – Get a Quote and Compare Prices

After providing all the information, the insurance company will calculate the cost of adding a second car to insurance. At this stage, it would be wise to compare quotes from other companies.

Stage 5 – Complete Adding New Car to Insurance

Making changes to the insurance policy involves choosing when the coverage will take effect and providing proof of ownership of the new car.

Be sure to inquire about discounts, as many companies offer them for policies covering multiple cars and for having a flawless driving record.

At the end, carefully review the received offer regarding insuring a second car. If everything suits you, complete the process by signing the necessary documents.

Key InformationTo Add a Car To My Insurance

Data about the new car
  • Make, model, and year of manufacture for the insurance agent to understand the value and associated risksVIN code, a unique 17-digit identifier for tracking a specific car and its historyMileage to calculate the insurance premiumOwnership details to know whether you are the car’s owner or the car is under a loan or lease, affecting insurance claims
Data about you as a driver
  • Driver’s license information and driving historyInformation on how often you plan to use the car and for what purposes – commuting, trips, etc.Parking specifics – paid parking with security, private garage, driveway, street parking, etc.Average mileage per day, week, or month and current odometer readings
Data about desired coverage type
  • Any additional coverage options you wantThe deductible you’re willing to pay in case of an insurance claim
Additional data
  • Provide information about your current policy, including the number and effective date.Proof of ownership of the new car – registration or certificate of ownership.Any modifications you made to the car (e.g., additional parts).

Remember that concealing truthful information will only work against you. By providing the correct data to the insurance company, you’ll receive the most accurate insurance premium and suitable coverage that fits your needs.

How Much Is It to Add a Car to Your Insurance?

Adding a vehicle to an existing insurance policy will cost you around 75% of your current insurance cost. Talking numbers, this may cost you $100 per month if your current auto insurance policy costs $130 per month, the average value in the U.S.

However, you may qualify for a lower coverage price if you:

  • Reside in the states of Idaho or Maine
  • Are a senior driver
  • Have a good credit history
  • Are female

Geico, Progressive, and State Farm Auto Insurance

For analysis, we selected three of the largest insurance companies offering a wide range of insurance products:

  • Geico – an insurance company that sells policies directly to customers, bypassing agents
  • Progressive a large auto insurance company known for its innovative device Snapshot that tracks driving habits
  • State Farm – a popular company that offers a wide range of insurance products, competitive prices, and good customer service

Here you go:

 For good driversFor drivers with one violationFor drivers with one accidentFor drivers with one DUIFor drivers with a poor credit history
Geico$1,250$1,611$1,949$3,049$1,975
Progressive$1,540$1,994$2,406$1,958$2,695
State Farm$1,279$1,413$1,522$1,717$3,516

Adding a Vehicle to an Existing Insurance Policy Will Foster Safe Driving

Adding a car to insurance is a smart decision that will provide you with peace of mind and financial protection in case of unexpected accidents. The only thing to remember is the importance of choosing the right type of coverage from a reliable company while providing accurate personal information.

Last but not least, you only have around a month after purchasing a new car to cover it with your current insurance. So don’t miss the chance to get proper protection on the road.

Frequently Asked Questions

Do I have to insure all my cars with the same company?

No, you are not obligated to insure all your cars with one company. However, collaborating with one insurance agent can save around 25% of the coverage cost and time you would otherwise spend on extra paperwork.

Can you add a vehicle to your insurance online?

You can add your other vehicle to your insurance online on the insurer’s website or mobile app.

How much time do you have to add a new car to your insurance policy?

The usual deadline for adding a car to insurance is one month from the date of the purchase.

What is the cheapest way to insure a second car?

Insuring two cars under one policy is the cheapest way to insure your second car. It saves you around 25% of the insurance cost and reduces paperwork.

Victoria Berezhetska

Victoria Berezhetska is a Content Lead at Phonexa.com and an expert contributor to CoverExplore. She has a Bachelor of Science degree in Business Administration, with extensive working experience as a PR specialist and content writer. At CoverExplore, she helps customers find the right educational material through easily digestible blog posts and buying guides backing their insurance coverage choice. Victoria covers diverse topics around digital and insurance marketing, including auto, home, health, and life insurance.

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