How to Add a New Car to Your Insurance Policy

Click here for everything you need to know about adding a new car to an existing insurance policy.
Written by Cameron Thiessen
Reviewed by Kathleen Flear
If you already have an existing auto insurance policy, adding an additional vehicle to that policy is usually fairly simple. Plus, some car insurance companies will offer discounted rates for multi-car policies.
If you’ve just added a vehicle to your family’s fleet, you’ll need to have it covered by quality
car insurance
. We’ll go over the process of updating your insurance policy with an additional vehicle, and discuss how to make the most of your premium.
Let’s get to it!

How to add a car to your insurance policy

If you contact your current insurance provider, you’ll be able to easily update your insurance policy with a new vehicle, and it won’t take up much of your time at all.
Every car that you drive needs to have valid insurance coverage that meets your state’s minimum car insurance requirements. These requirements usually include
bodily injury liability
coverage and
property damage liability
at the very least. But that doesn’t mean you need a different policy when you get a new vehicle.
Most insurance providers will simply have you add your new vehicle to your existing policy, and it might not even add all that much to your premium. Check to see if you are able to do this in your insurance company’s mobile app or website. Alternatively, you should be able to add a new car to your insurance policy by visiting your insurance agent’s office or simply calling them by phone.
Gather together your vehicle’s information and your current policy information before you get started on updating your policy. You’ll need things like your policy number, the make, model, and year of your new car, its VIN, and its plate number. You’ll also likely need to provide some personal information, like a driver’s license number and your date of birth, to confirm your identity.
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Will adding a new car increase your insurance rates?

Adding a new car will increase your overall monthly car insurance payments, but your individual rates per vehicle will decrease thanks to common
multi-vehicle discounts
.
According to
Car and Driver
, multi-car insurance discounts usually result in 10% to 25% off your coverage, although your savings could be even higher with the right insurance provider. Pay attention to how your premium rates and deductibles change when you add a vehicle to your existing policy. It’s possible that switching insurance companies might be necessary for a multi-vehicle discount to pay off the most.

Pros and cons of a multi-vehicle car insurance policy

While the positives usually outweigh the negatives when it comes to multi-vehicle auto insurance policies, there are some instances in which that might not be the case.
Pros:
  • Simplicity—you only have to manage one policy and pay a single bill
  • Single deductible
  • Savings from multi-car discounts
Cons:
  • One big payment per month rather than two payments at different times of the month
  • You might not need the same types of coverage for different cars
Make sure that you shop and compare between car insurance quotes from different companies. You might be able to get the best deals by getting a great multi-vehicle plan, or you might want to have two policies that provide different types or amounts of coverage.
It will all depend on what the vehicles are, what you use them for, and your driving record. For example, if you just bought a brand new vehicle, you probably want to set it up with a
full-coverage
policy, while you might just want basic liability insurance and collision coverage for your older vehicle. You might also want to choose different coverage limits for different vehicles, again, depending on how they’re being used.
Bear in mind that if you’re financing your new car, most lenders will require that you have a full coverage insurance plan that includes both comprehensive coverage and collision coverage.
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FAQs

Not every insurer is the same, but you usually have a grace period of one week to one month to add a new car to your policy. As long as you update your policy within the grace period, your existing car insurance policy will apply to your new car. This applies to both new cars as well as newly-purchased used vehicles.
Already having an existing car insurance policy is useful for showing proof of insurance when you leave the dealership with a new ride. This also means that you have some time to weigh out your various coverage options when you purchase another car.
If you want the same coverage for the car you just purchased, then it’s usually cheaper to include both vehicles on the same policy. However, if you want additional coverage for a more valuable vehicle and a basic policy for one with less value, you’d be better off going with separate policies.
While you can usually have up to four or five cars on a single car insurance policy, you won’t be able to pick and choose different forms of coverage for each one. In order to do this, you need separate insurance policies with their own unique coverage specifications.
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