Whether the number of drivers in the family is increasing or you’re looking to add an extra vehicle to the household, you may wonder how it will affect your car insurance rates. Adding a second car to your insurance policy can change your insurance rate in various ways, and the outcome depends primarily on your insurance carrier, the specifics of your policy, and your circumstances. When you add a second car to your policy, it’s essential to review your coverage needs and consider any adjustments that may be necessary.
It’s also important to shop around and compare quotes from different carriers (you can do so quickly and easily with the help of our SelectQuote agents) to ensure you’re getting the most competitive rate for insuring multiple vehicles. This article will provide more information about how adding a second vehicle will affect your insurance rates so you can make the right decision for your budget and lifestyle.
Can you receive discounts for having more than one car?
One significant benefit of adding a second car to your insurance policy is the potential to receive a multi-car discount. Many insurance companies offer a discount for insuring multiple vehicles under the same policy because it often provides the insurer with a larger volume of business. This discount can offset the increase or result in overall savings on your insurance premium. Multi-car discounts are a common incentive for households with multiple vehicles to consolidate their coverage under a single policy.
Typically, the more cars added to the policy, the greater the potential discount. However, the specific discount amount and eligibility criteria vary between carriers, so you should check with yours about the details of their multi-car discount offerings.
What factors influence auto insurance rates for multiple vehicles?
Many things influence the rate you’ll pay when you add a second car, including the vehicle, the driver, and the coverage. A multi-car discount can help with savings, but there are other factors to consider that might increase your overall premium, such as:
Vehicle characteristics: The type, make, model, and year of the second vehicle can influence your insurance rate. For example, if the second car has poor safety ratings, it may increase your overall premium due to the higher risk of insuring such a vehicle.
Driver profiles: When adding a second car to your policy, the driver of the additional vehicle may also impact your insurance rates. For example, is a young or inexperienced driver primarily uses the second car, it could increase the overall premium due to the higher risk of insuring less experienced drivers.
Coverage selection: The coverage you choose for your second car will also affect your rates. Opting for comprehensive and collision coverage on the second vehicle, in addition to liability coverage, will generally result in a higher premium rather than a simple liability policy for the second car.
Need to find a policy for more than one vehicle? SelectQuote can help.
Whether you’re looking for a new policy for multiple vehicles or need to update your current policy, the licensed insurance agents at SelectQuote can help you find what you need. In just minutes, we’ll compare rates from several of the nation’s most trusted carriers so you can weigh your options. We work for you, not the insurance companies, so you can rest assured that you’ll find a policy that suits your needs and budget.
