Does it cost more to add a second car to insurance?
Asked by: Donny Predovic | Last update: December 6, 2025Score: 4.8/5 (13 votes)
Is it more expensive to add another car to insurance?
Adding a second vehicle to your policy will likely increase your premium. However, discounts for a multivehicle policy might offset the cost, making it the most cost-efficient option.
How does car insurance work if you have two cars?
If you have more than one vehicle that you keep at the same address, you can add them all to your policy. Some insurance companies may state that they must be "garaged" at the same address, but an actual garage isn't required. It just means the cars must be parked at or near the same address.
Does adding a new car increase insurance?
Usually, getting a new car will increase your rate because it'll be worth more than your old car. Note that other factors may impact your car insurance rate if you're starting a brand-new auto insurance policy.
Does it cost extra to add another driver to insurance?
In some cases, adding a driver to your policy can affect your premium, but not always. Many factors determine the cost of adding a driver, like driver relationship, age, driving history, past claims, and driving records.
How to Add a Second Car to Your Insurance Policy | Car Insurance 101
Will my car insurance go up if I add a driver?
Typically, adding drivers to your policy can increase your premium. For example, there is a reason adding a teenage or newly licensed driver to an auto policy can result in an increase in insurance premiums.
Can my husband drive my car if he is not on my insurance?
Usually, yes. Your car insurance coverage should be able to extend to anyone else driving your car. Even if someone isn't listed on the policy, they can operate your vehicle. If you explicitly name someone as an excluded driver in your policy, however, none of this applies to them.
How many cars can you have on your insurance policy?
How Many Cars Can You Have on One Insurance Policy? While there is no universal limit, most insurance companies will allow four or five vehicles to be listed on a single policy. Some companies may offer greater flexibility and accommodate more vehicles, while others may have stricter limitations.
Is insurance cheaper for older cars?
In general, auto insurance for older cars may be cheaper than insuring newer vehicles of the same make and model if the used car is cheaper to repair or replace. A car depreciates in value over time, which lowers the maximum amount an insurance company would have to pay in the event of an accident.
How much is car insurance for 2 cars?
The average cost for a two-car liability policy is $177 per month. USAA and State Farm are the cheapest insurers for two-car liability insurance policies, with respective averages of $78 and $90 per month. With a multi-car policy, you can have all your policy details for each car in one place.
Do I have to pay to add a car to my insurance?
Multi-car discounts are among some of the most significant discounts offered to drivers by car insurance companies, but they're typically not enough to negate the total premium your insurance company will charge to add a vehicle to your policy.
Is there a discount for insuring two cars?
Insurers commonly offer multi-car discounts when vehicles garaged at the same address are combined and listed on a single auto insurance policy. Some restrictions may apply, so be sure to ask your Mercury Agent for more information.
Does it cost more to insure a new or old car?
Since new vehicles have a higher initial value, they have higher car insurance premiums, but because of the rapid depreciation, these premiums may also decrease over time. Full coverage car insurance costs for new cars tend to be more expensive compared to used cars due to their higher value.
Does State Farm offer a multi-car discount?
Multiple autos
If two or more vehicles in your household are insured by State Farm and owned by related individuals, you could save as much as 20%.
How long does it take to add a car to insurance?
How long does it take to add a car to your insurance policy online? From start to finish it's possible to complete the process in less than 1 minute. Please note the process may take longer if you decide to make additional changes such as editing the coverage limits.
Is it cheaper to have two cars on one policy?
Because a single vehicle does not require additional coverage, the base price is less expensive with only one vehicle. However, adding additional vehicles can qualify you for the Multi-Car Discount which can help you save money on the total premium due when adding coverage for a second vehicle.
How does insurance work with multiple cars?
A multi-car insurance policy means that you pay a single consolidated premium to insure more than one vehicle. This not only makes managing your bills easier, but providers generally reward policyholders with a discount for insuring multiple cars under one policy.
What is the progressive car limit?
The most commonly required liability limits are $25,000/$50,000/$25,000, which mean: $25,000 in bodily injury per person. $50,000 in total bodily injury per accident. $25,000 for property damage per accident.
How much does insurance go up with a second car?
This can range anywhere from 10% to 25%, depending on the provider and your coverage levels. If you're adding a second car to insurance and both vehicles meet the insurer's criteria, you could end up with a nice reduction in your overall premium.
Can my son drive my car if he is not insured?
Most insurers cover someone else driving the policyholder's car with their permission once in a while. But, if you're going to start driving one of your parent's cars regularly, you'll need to be added or named on their auto insurance. You can't legally drive your parents' car without any insurance at all, either.
Do I need insurance for my second car?
If you buy a second car, you need to insure it, even if you only plan to take it for a spin now and then. Insuring two cars costs more than insuring a single vehicle but there are options — such as multi-vehicle discounts, usage-based policies, and specialty car insurance — that can help reduce the cost.
Does it cost money to add a driver to insurance?
According to CarInsurance.com, there is usually no charge for adding a driver to your insurance policy. The Automobile Association notes that some insurers charge a small administration fee to update policies. You may also find your premiums change.
What happens if someone borrows your car and gets in an accident?
Vehicle Owners Are Liable Under California Law
This law holds a vehicle's owner responsible for collisions caused by the driver of the vehicle – even if the driver is not the owner. Liability is determined by identifying the actual owner of the vehicle.
What happens if I don't add my teenager to my car insurance?
Failing to add your teenager to your auto insurance can lead to coverage denial, legal penalties and policy cancellation. Lack of driving experience and perceived higher risk contribute to higher car premiums for teen drivers.