Insuring your Second Car

Say, you have bought for your own use a second car, or one for a teenager who is now driving, or a son who got married or moved in with a friend. It would make a lot of sense to add this second car to your existing auto insurance coverage, instead of having two separate policies. It’s easy and simple as well.

Most insurance companies limit the number of cars that can be included in one policy. This number varies from company to company, but it is typically 3 or 4. As long as you do not exceed the limit, you face no problems. Here is how to go about adding a car to your policy.

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Collecting vital information

Collect all the essential information about the new car. This includes name, model, year, license plate number and the Vehicle Identification Number (VIN). Ensure that all the information you have collected is completely accurate, because any errors in the data submitted could be cause enough for turning down a future claim.

Contacting the insurance company

Get in touch with your insurance company. Some companies allow you to modify a policy online. If that is possible, find the relevant webpage for policy modification and provide the information. If that is not possible, call the company helpline, and they will walk you through the process.

Working out the right coverage

Decide on the coverage you want for the second car. It does not have to be the same as that for the first vehicle. You can reduce or increase the coverage, adjust the deductibles and so on. This is one area where it is easy to make a mistake and this is where the advice of an insurance professional could be of great help.

Checking the rates

Check how the addition of the second car to the existing auto insurance policy will affect the rates. Normally there is an increase in the cost of the policy due to a number of factors. For example, if the second car is expensive or is known to be accident prone, the increase may be high.

On the other hand, if the second vehicle is an inexpensive one and is known to be safe, it is possible that the rates are lower. The insurance company may think that your accident risk is low due to the availability of a safer vehicle.

Moreover, adding a second car to a policy may qualify you for a multi-car discount in some cases. Here again the guidance of an insurance broker can be of great help in arriving at the right coverage at the right cost.

Doing it the right way

Therefore, the addition of a second car to an auto insurance policy may not involve any significant additional cost. It may even bring the rates down. These are important factors no doubt for you to consider; but the first thing is to ensure that you have the right coverage and that both the vehicles are fully protected. Contact your insurance broker at the earliest for expert professional advice on all these issues.