policies if you have a dedicated business vehicle, own a classic car, or own vehicles in two different states. But in other cases, it might make sense to simply add a second vehicle to your existing policy.

Here’s when you might need to have two car insurance policies

There are a few key instances when you’ll need to purchase more than one insurance policy. Let’s break them down.

You have a personal vehicle and a work vehicle

The problem: Most personal car insurance policies won’t cover a vehicle that you exclusively use for your business, such as driving to work sites, transporting tools or supplies, or delivering goods.

The solution: You’ll need to insure the vehicle with a commercial vehicle insurance policy. If you purchase your commercial auto insurance policy and personal auto insurance policy from the same provider, you might be able to save money with a multi-policy discount.

You own a specialty vehicle

The problem: If you own a classic or antique car, it will need specific coverage appropriate to its higher value.

The solution: Purchase a

classic car insurance

policy for it. Classic vehicle coverage comes with more restrictions than a standard car insurance policy (like strict annual mileage limits and age and storage requirements), but it also offers greater protection.

Your spouse has a poor driving record

The problem: You can typically insure vehicles in the same household on the same policy—but if your spouse has a poor driving record, you may not want to. Violations and driver’s license points indicate high risk levels to insurers, which means high insurance premiums for you.

The solution: You can purchase separate policies and then list your spouse as an excluded driver on your vehicle. They won’t have any coverage on your vehicle (and therefore cannot drive it), but it will preserve your lower insurance costs.

You have cars in different states

The problem: Each state has its own minimum insurance requirements and not all car insurance companies operate in every state.

The solution: If you own two vehicles in two different states, shop around to find the best coverage for each one. You’ll be able to tailor your coverage levels to comply with state requirements and make sure you’re getting the best rate.

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What if you use your car for rideshare services?

If you use your vehicle for rideshare services like Uber or Lyft, you should consider

rideshare insurance

. It isn’t a second policy, but rather an add-on to your existing auto insurance coverage.

Adding rideshare insurance ensures you’ll be covered for the gaps that your personal policy and the rideshare company’s policy leave—like when you’re on the job but between passengers.

How to shop for a second car insurance policy

If you need to buy a second auto insurance policy, you can use the

Jerry

app to quickly find the best rate.

Jerry will walk you through creating your profile step by step, including your personal information, vehicle details, and coverage requirements. Then, you’ll get a curated list of the best quotes from top insurers in your area.

You can complete your purchase right in the app and start your coverage the same day—or schedule its start date up to 28 days in advance.

In some cases, it’s best to add a vehicle to your existing policy

If you are buying a second vehicle for the same household, your best bet is to add it to an existing policy. Here are a few things to keep in mind:

Both policies will need to list all drivers in the household

Your liability and uninsured motorist coverage limits are set at the policy level—but beyond that, you can customize coverage for each vehicle

You can earn a multi-vehicle discount of around 15%, depending on your insurance provider

Excluded drivers won’t be covered to drive the vehicle(s)

If you’re using the Jerry app, you can easily add a new vehicle to your policy and adjust its coverage levels.

Learn more:

How to add a car to your insurance policy

FAQs

Is it illegal to have two car insurance policies?

Having two car insurance policies on the same vehicle, also known as double insurance or duplicate coverage, is not illegal on its own. But if you try to make two claims on the same incident you’d be committing insurance fraud, which is illegal.

Can you have two car insurance policies with the same auto insurance company?

You can have two car insurance policies for separate vehicles with the same insurer—in fact, doing so might open the door to multi-policy insurance discounts from your provider.

You can also have two car insurance policies on the same vehicle with one provider, but this offers little value to you.

What is the difference between having 2 different car insurance policies and having one car insurance policy?

When you have multiple cars on a single policy, a single liability insurance limit covers all the vehicles. You’ll also be eligible for a multi-car discount.

Having multiple policies allows you to have different liability limits for each vehicle and typically only makes sense if you need two different types of policies (personal auto vs commercial auto), you own a classic vehicle and need classic car insurance, or you own two vehicles in two different states.

How much does it cost to have a car insurance policy?

The average full coverage car insurance policy costs $1,672. But remember: the cost of a policy is based on factors like your age, vehicle type, credit score, and driving history—so it varies for everyone. The best thing to do is shop around for insurance quotes with multiple providers to ensure you’re getting the best deal on the coverage options you need.