Saving Money: How to Add a Car to an Insurance Policy

Lucy Lazarony
May 18, 2020

It’s possible to cheaply add a second or third car to an insurance policy. With auto insurance it is also possible to share. You can add a friend or neighbor or loved one to your car insurance policy as a listed driver or you can add their car(s) to your auto policy. Both can be good choices. Let’s take a look at each option.

Adding a Car to an Auto Policy

Let’s start with adding a car to a current auto policy. Can I add my friend’s car to my insurance policy? The answer is yes. I only own one car, can I add a second car to my insurance policy? The answer again is yes.

How do I add a car to my insurance policy? Adding a car to an existing policy is simpler than you would imagine. Just notify your auto insurance company that you want to add an additional car or cars to your current policy. They will give you a rate quote and possibly a discount. However, we suggest you compare auto insurance rates with other insurers to get the best price.

Most major auto insurance companies make this easy to add a car to an existing policy over the phone or online. To add a car to your car insurance policy you’ll need the make, model, and year of the car, the car’s VIN number, the car’s license plate number and your current auto insurance policy number.

Choosing Coverage for the Added Car

Next, you’ll choose the type of insurance coverage that you want on the additional car. It usually doesn’t have to match the current coverage that you have on your own car. So consider your choices carefully.

Let’s start with liability coverage.

First off, you will need to meet the state’s minimum insurance requirements. And some auto insurance companies require you to have the same amount of liability coverage on each car on your policy. So check with your insurance company to see if you will need matching liability coverage on the car you are adding to your auto policy.

In contrast, both comprehensive insurance coverage and collision insurance coverage can be chosen differently for different cars. So decide how much coverage you’d like for each additional car you are insuring. Is the car you are insuring worth less than the car that you drive? Consider the car’s current value when choosing both collision insurance and comprehensive insurance.

Comprehensive insurance covers any damage to your car when it’s not being driven. It also covers theft and vandalism. Collision insurance covers damage to your car from an accident if it is your fault. Both are important insurance coverages so choose wisely when selecting how much coverage you would like for each.

Adding Multiple Cars to a Policy

A second or even a third car can be added to an auto policy with ease. But a fourth or fifth car may be too much so check with your car insurance company if you have more than two cars that you would like to add to your policy.

Multi-car Discounts and Bundling

When you add a car to your car insurance policy don’t forget to ask for a multi-car discount. This savings can really add up the more cars you add to your policy.

For even more discounts, bundle all your insurance policies with the same insurance company. Insurers give discounts when you have multiple policies. Just one additional policy is enough for a bundle but even more will bring you more savings. For example, you could bundle together your renters insurance with your auto insurance. But any of these policies, RV, home insurance, business insurance and condo insurance can all be bundled together with your auto insurance for savings.

Do You Have Too Much Insurance?

It is possible to have too much insurance on a car, especially on older models that you have had around for years. For example, some people make the mistake of buying collision coverage on a car that is worth $1,000 or even less. With a $1,000 deductible already on the car it doesn’t make financial sense to buy the collision coverage any longer. So re-examine your auto insurance policy each year. Your car is getting older and is worth less. Is it time to make a change? No use having new car coverage on an older car that you’ve been driving for years and that you only use for around town driving. Price your insurance coverage on your current, not past, driving needs and save money.

Adding Another Driver to Your Car Insurance Policy

Would you like to add another driver to your auto policy? You’d be surprised how easy this is to do. Can I add a friend to my car insurance policy? The answer is yes. Can I add my boyfriend to my car insurance policy? The answer again is yes and especially so if you are living in the same household together.

Can you add anyone to your car insurance policy? Just about. Some car insurance companies prefer that it be someone in your household but other companies are more open so that a neighbor, relative, or friend or boyfriend or girlfriend can easily be added as a listed driver. Doing so also ensures that the additional driver will be covered by your auto insurance if they are ever in an accident in your car. So check with your auto insurance company to find out their policy on additional drivers.

To add another driver to a car insurance policy, you will need to give the driver’s name, date of birth and driver’s license number to your auto insurance company. It is a pretty straightforward process.

What will adding someone as a driver do to your car insurance? Any accidents the driver causes will be covered with insurance and it also extends first-party medical coverage to the driver. So any injuries the driver suffers would be covered under insurance.

In addition, listed drivers are able to file claims on your policy if need be. They can even schedule appointments for repairs following accidents. And they can do all this without the driver’s involvement.

It is quite a responsibility being listed as a driver on an auto insurance policy so choose a driver carefully. You are sharing a car and car policy together. Make sure you do it with someone you can trust. Also, keep in mind that if your additional driver has a checkered driving history, it may raise your rate. On the flipside, a safe driver may improve your rate. It’s a good idea to compare auto insurance rates below, with and without additional drivers to get the best rate.

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