A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 19, 2021

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Here's what you need to know...

  • Adding a car to your auto insurance policy will raise your premium
  • How much the premium is increased will vary based on many factors, such as what type of car it is and what it will be used for
  • You should ask about a multi-car discount or other discounts to bring your rate down

Whether you have added a new car to your family, bought a car for your teenage driver, or have another reason for adding another car to your auto insurance policy you may be concerned about price. However, it is important to keep in mind that there are several factors that can either increase or decrease your auto insurance premiums.

If you need to decrease your premiums, you should consider using an online price comparison tool. These tools make it simple and easy to compare auto insurance quotes from many different companies and to choose the one that best fits your needs and budget. Before the age of the internet, comparison shopping for auto insurance was very time-consuming and not very convenient. Now with online price comparison tools, you can find an affordable policy that fits your needs in just a few minutes. Compare car insurance rates now by using our FREE tool above!

The Costs of Adding an Additional Vehicle to a Car Insurance Policy

More than likely, adding another vehicle to your auto insurance policy will raise your premium.

There is generally no upfront fee or deposit required, however, you should check with your auto insurance company to be sure.

The additional cost will be tacked onto your premium, whether you pay it monthly, bi-annually, or annually. It can be difficult or predict how much this addition will cost you, but the price can be dependent on the following factors:

  • Your current policy premium
  • Your driving record or the driving record of the person who will be driving the new car
  • If the car insurance company gives multi-car or multi-policy discounts
  • What you intend to use the car for and how much you will drive it
  • The type of car it is and if it has any safety or antitheft features
  • If you are electing only the minimum amounts of insurance coverage or if you will be adding additional coverage in the forms of comprehensive or collision.

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How do I add a Car to My Auto Insurance Policy?

When you are ready to add another vehicle to your car insurance policy, you will need to call your insurance agent or the customer service department at your insurance company. Have the following information ready when you call:

  • Car make
  • Car model
  • Car year
  • VIN
  • What the car will most be used for, such as traveling to and from school, work, or for pleasure
  • An estimate of how far the car might be driven each year
  • A list of any safety and antitheft features the vehicle may have

The agent you speak with will likely request all of this information from you, and possibly more, in order to provide you with an accurate updated premium quote.

How can I Lower My Car Insurance Premiums?

If you are adding an additional vehicle to your insurance policy, there’s likely a reason why you need this vehicle. However, it may be more challenging for you to afford your auto insurance premiums with the additional a vehicle attached to the policy. The following factors and discounts can help you receive a lower premium.

  • Multi-policy discount: If you have your auto insurance policy with the same insurance company you have another insurance policy with, such as your renters, life, or homeowners insurance with, you may be eligible for this discount.
  • Multi-car discount: Most car insurance companies will provide you with a discount for having multiple vehicles on a policy. In fact, when you add an addition vehicle, you may be surprised that it is not as expensive as you would have imagined due to this discount.
  • Good driver discount: A clean driving record will help earn you a better rate on your auto insurance premium with most car insurance companies.
  • Driver’s education or defensive driving course discount: Depending on your car insurance company, this can apply to inexperienced or teen drivers, as well as more mature drivers. Taking a professional driving course, even an online course can help defray your premium costs.
  • Military discount: Many auto insurance companies choose to honor the past and present members of the US military by providing them with a military discount. Depending on the insurance company, this discount could be significant.
  • Paperless billing: You can be good to the environment and save money at the same time with paperless billing. Many car insurance companies will cut you a break if you elect all electronic billing. You can receive and pay your bills via their website, which can also be more convenient for a lot of drivers.
  • Payment in full: If you pay your policy in full, annually or bi-annually, you may also see a significant discount. Depending on the auto insurance company, it may be well worth it to come up with this money in advance and pay the policy in full. In this situation. you also have the convenience of not having to worry about paying your bill each month or risking being canceled for nonpayment.
  • Green vehicle: If you have a vehicle that is environmentally friendly, such as one that uses E85 fuel or is part electric, you may also qualify for a discount.
  • Anti-theft: Having an anti-theft feature or device on your car makes it less of a risk for your insurance company. This makes most insurance companies more inclined to cut you some slack on your auto insurance premium. In general, when the amount of risk you pose to your insurance company goes up, so do your premiums. If the risk of pose goes down, you premiums will also follow.
  • Loyalty: Finally, more and more auto insurance companies are rewarding their customers with loyalty discounts or even reward systems. It can pay to stay with an auto insurance company for many years if they offer a generous loyalty program.

Be sure to ask your car insurance agent or customer service agent if you qualify for any of these discounts. Sometimes they will not be applied or looked into unless the customer asks. Raising your deductible amounts and shopping around can also help you lower your premium.

Adding a car to your insurance policy can be costly, however, you may find it to be less expensive than you expected due to multi-car or other discounts.

If you need help finding a lower premium for your car insurance, be sure to use an online price comparison calculator. These types of calculators can help ensure that you are getting the coverage you need and deserve at prices you can afford, no matter how many cars are on your auto insurance policy. Enter your zip code in our FREE tool below to compare car insurance rates now!