Is it Cheaper to Add a Second Car to Insurance?


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It ’ south common for households to have two cars, specially if both spouses work. But is it cheaper to add a second car to your policy plan ? In this article, we ’ ll explain which option saves you more money : adding a second car to an existing policy policy or starting a new policy all in all .
If you ’ re curious about cable car insurance rates in your area, enter your ZIP code in the box above to receive free quotes .

Is It Cheaper to Add a Second Car to Your Insurance or to Take Out a Separate Policy?

Because households with multiple vehicles are common, many indemnity providers offer multi-car discounts with savings of up to 25 %. In fact, these discounts are typically part of an policy company ’ randomness scheme for attracting and retaining customers. It will about constantly be cheaper to insure a car when it ’ randomness added to an existing policy .
Be aware, however, that the premiums for the second vehicle may be affected by the drive criminal record of the primary driver. Your policy premiums will increase, but a multiple-car policy will about always save money compared to buying two separate policies, leading to brassy car policy .
When you insure multiple vehicles, the same policy will be used for each car when you file an insurance claim. The cars share one deductible ampere well .

When You Shouldn’t Add a Second Car to Your Policy

Before you rush off to call your indemnity agent, a few early points must be considered. There may be circumstances when you should not add a second car to your insurance policy but alternatively give each vehicle its own policy .

The Other Car Isn’t Owned by a Member of Your Household

The most obvious rationality to maintain separate policies is when the new cable car does not belong to regular members of your family. While renters or an extended house guest may park their car in your driveway or garage, there ’ s no reason to include them into your car policy policy unless they plan to become a permanent nonmigratory .

You Need Different Types of Insurance

Some car insurance companies require that you maintain the same insurance policy and coverage for all vehicles that are on a policy. If your garage contains a new car and an old clunker, it doesn ’ t make common sense to pay for comprehensive coverage or collision coverage for both vehicles. This is specially true if one vehicle is used less frequently than the other .
Check with your indemnity supplier to explore your options. Today ’ s top providers will frequently require both vehicles to have the same sum of liability coverage, but they may be more flexible when it comes to other types of policy .

Commercial and Company Vehicles

If you use a separate car for business, this vehicle is typically not going to be eligible for a multi-car dismiss. Auto insurance companies normally offer these discounts for private passenger vehicles, requiring classify policies for commercial and ship’s company cars .

Classic Collector Car

If one of your vehicles is a collectible or classic car, you will likely need a singular policy .

Multi-Car Discount Requirements

For most drivers, insuring two vehicles on the same indemnity policy is a great manner to save money and stop paying for classify policy premiums. If you ’ d like to pursue a multi-car discount, here are a few things you should know .

Requirements for a Multi-Car Discount

Most policy companies have a few requirements you must meet before you add a fresh vehicle to your policy. These include :

  • Vehicles must be primarily parked at the same household
  • Vehicles must be private passenger vehicles
  • Vehicles must have the same liability insurance (covers bodily injury and property damage costs for others when you cause an accident)

That means that if your second cable car is a commercial or party vehicle, you may not be eligible for a multi-car rebate .

Discounts for Other Vehicle Types

What if your second car international relations and security network ’ t a car at all ? Some indemnity companies offer a multi-vehicle discount or bundle options for drivers who besides own a motorcycle, RV or early type of vehicle .

Companies That Offer Multi-Car Discounts

How much cheaper multi-car discounts will make your insurance normally depends on your specific car and policy. The following table shows the discounts offered by today ’ second top providers :

Company Discount %
Nationwide 20%
Progressive 10%
State Farm 20%
Liberty Mutual 10%
USAA Varies

Be advised that this table is meant for reference point purposes. Check with your policy supplier about any other discounts it may offer for a multi-car indemnity policy .

Our Recommendations for Auto Insurance

If you ’ re looking for car policy providers, we ’ ve reviewed nowadays ’ s top companies to find the very best options. Note that these indemnity companies all offer multi-car discounts, and you may be eligible for other discounts and promotions deoxyadenosine monophosphate well .
By entering your ZIP code below, you can receive free car policy quotes from the top providers in your area. You can use this datum to compare car policy rates and pinpoint the ship’s company that ’ s right for the cars in your family .


GEICO: Best Overall

GEICO provides its customers with a 25 % multi-car deduction. We named the insurance company as the area ’ randomness best car insurance supplier overall in our diligence review, giving it a score of 9.1 out of 10.0, with a 9.0 in customer experience, 8.5 in coverage, 9.4 in price, and 9.8 in industry reputation .
The multi-car rebate is merely one of many GEICO discounts that make your vehicles cheaper to insure. The company besides offers insurance options such as usage-based policy, rideshare policy for Uber, Lyft, or food delivery drivers, and mechanical dislocation indemnity .

USAA: Best Military Provider

USAA provides insurance policies to members of the military and their immediate families. If you ’ re eligible for one of its policies, arrest with a local agent about a multi-car rebate. In a previous review, we awarded USAA an 9.6 out of 10.0 overall, with an 9.5 for coverage options, a 10.0 for monetary value, a 9.3 for customer avail, and a 9.3 for its repute in the insurance industry .

State Farm: Best Student Discounts

state grow is already known for offering discounts for students, vitamin a well as safe driver bonus programs for those with a clean driving history. But State Farm besides offers customers a 20 % multi-car discount rate, so families with more than one fomite can take fully advantage of these fiscal benefits.

Our experts gave State Farm a rate of 9.1 out of 10.0 for overall performance, noting its ranking customer service a well as its strong reputation. Because the caller offers discounts to students adenine well as multi-car families, this might be an excellent option for households with person who needs car policy at 17 or below .


The Detroit Bureau collects data from every major car indemnity provider to formulate rankings of the best insurers. Our in-depth military rank system takes into report marketplace plowshare, coverage, pricing, customer satisfaction and ratings from industry experts. Each insurance company is given a leaden score in four categories, a well as an overall score out of 10.0 .
We recommend car indemnity companies based on these rankings, but we besides encourage you to perform your own research and compare quotes to find the best coverage .

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Category : Finance

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