How Adding a Second Car Could Impact Your Insurance

Adding a second car to your insurance will typically raise your car insurance costs by about 75%
Written by Sarah Gray
Edited by Jessica Barrett
Adding a second car to your insurance will typically raise your
car insurance
costs by about 75%, but the exact cost depends on the model you add and your insurer’s multi-car discount.

How much does it cost to add a second car to insurance?

Adding a second car to your insurance will typically result in an average 75% rate increase over your current policy’s premiums—but it will cost you less than purchasing a separate policy. How much your rates increase will depend on the type of vehicle you add.
  • Small SUVs, minivans, and family sedans are typically cheaper to add to insurance as a second car, and
    cheapest to insure
  • Large SUVs, pickups, sports cars, and electric cars will cost more to add
In general, you’ll only need to purchase a separate policy for the vehicle you’re adding if it needs a different type of coverage than you currently have. For example:
  • Your current policy offers liability only for an
    older car
    , but your brand-new SUV needs a full coverage policy. While many providers allow different coverage levels for different vehicles on a single policy, some do not.
  • You need
    specialized coverage
    for a classic car or sports car you’re adding to your garage

Estimate the costs of adding a second car to insurance

To estimate how much it will cost to add your second car to your insurance policy, follow these steps:

Step 1: Find the VIN of the car you’re planning to buy

This is usually located on a sticker inside the car’s driver’s side door, but you can also check with your car dealer to find your vehicle identification number (VIN).

Step 2: Request multi-car quotes

app screenshot
You can use the
app to compare multi-car policies from several providers using your current car’s VIN and your potential second car’s VIN.
Most dealerships maintain a VIN catalogue online but you can manually input the information for your second vehicle if you don’t have the VIN yet.
Step 3: Compare multiple coverage levels
app screenshot
Once information for both vehicles is added, you’ll see a list of real car insurance quotes from companies offering multi-car auto policies.
Your list of free quotes will include not only robust,
full-coverage auto insurance
policies with optional add-ons, but also a variety of lower-coverage policies and even bare-minimum liability-only plans.

Requirements for a multi-car insurance policy

Once you choose a multi-car policy, you’ll need to provide the following information to officially add the car to your existing plan:
  • Your second car’s VIN.
  • Registered owner’s information if the new car will be registered to anyone other than you. If this driver isn’t already on your policy, you’ll also need to
    add them as a new driver
  • Vehicle safety features—these will usually populate automatically, but having a general idea, especially about the type of anti-theft system your vehicle has, can help you earn
    discounts on auto insurance rates
  • The type of coverage you want for the new vehicle. This will need to be the same insurance coverage as your first car to qualify for multi-car policies and their discounts.
  • Usage information—do you plan to use the second vehicle for daily driving or pleasure only?
  • Lender or leasing company information if the additional vehicle will be financed or leased.
Keep in mind Both cars need to have the same amount of liability coverage and be garaged and registered at the same address.

The best multi-car insurance discounts

Multi-car discounts offer savings on car insurance rates for policyholders who carry the same level of coverage on two or more vehicles garaged and registered at the same location. The average multi-vehicle discount is about 25% but the table below details the amounts offered by several top providers.
Car insurance company
Possible multi-car discount %
Up to 15%
Direct Auto
Up to 25%
Up to 46%
Up to 25%
Up to 20%
Up to 24%
Up to 30%
Up to 20%

How long do you have to add a second car to your insurance?

Most providers offer a
new car insurance grace period
in which your existing policy provides coverage for vehicles purchased but not yet added. These grace periods typically range from seven to 30 days.
That said, you should add your second vehicle as soon as possible—ideally, before you even drive it home.

How to add a second car to your insurance

Adding a second car to your policy
can be done easily through the Jerry app or by contacting your insurance agent/broker. Be sure to have the above information handy to speed up the process.
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Is it cheaper to add a second vehicle to insurance?

Typically, yes, it’s cheaper to add a second vehicle, but note that you will still pay more to insure two cars than one. Adding a second car rather than purchasing a second policy usually saves you about 25% on insurance premiums.

How long does it take to add another car to insurance?

Same-day insurance is often available when you add a second car to your policy. 

Is it cheaper to be on the same car insurance?

Sharing an insurance policy with another driver is sometimes cheaper than carrying separate policies, but the cost actually depends more on the drivers themselves than on the number of people insured. Insurance providers consider highly individualized factors, like credit score, driving history, homeowner or renter status, and more when calculating rates.

What is the average cost of adding a car to insurance?

Adding a car to your insurance policy will usually increase your rates by about 75%. How much you save will depend on several factors, including the type of car you add and the amount of coverage you carry.

How do you add a second car to insurance?

Adding a second car to insurance is easy if you use the Jerry app. You can also contact your insurance agent or broker to add a second vehicle.

What is the cheapest way to insure two cars?

Insuring two cars on the same policy is typically about 25% cheaper than purchasing separate coverage for each vehicle.

Do you need insurance to drive someone else’s car?

Technically, no—the vehicle owner’s policy will provide coverage for their own car, as long as the person driving has permission to use the vehicle and is not listed on the policy as an excluded driver.

Can you insure a second car for occasional use?

You can absolutely insure a second car for occasional use. In fact, this is a relatively common reason policyholders add second vehicles to their policies.

Where can I find the cheapest insurance for my vehicle?

Despite what you may have read, no single provider offers the cheapest rates for all drivers. To find the cheapest insurance for you and your vehicle, use the Jerry app to compare quotes from multiple providers.

How quickly should I add a vehicle to my policy?

Ideally, you should ensure you have a policy lined up before you purchase your new vehicle. That said, most policies offer a new car insurance grace period that ensures at least partial coverage until you can officially add the vehicle to your policy.

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