What’s the Cheapest Way to Insure a Second Car?

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Rachel Bodine graduated from college with a BA in English. She works as an associate editor and writer for 4autoinsurancequote.com for over a year and enjoys creating content that offers expert advice on car insurance topics.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs...

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Reviewed byLeslie Kasperowicz
Former Farmers Insurance CSRhttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/4autoins-live/6ea5d860-leslie-kasperowicz.jpg

UPDATED: Mar 13, 2020

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So you need to insure a second car – and you’re looking for the cheapest way to do it.

What’s the cheapest way to insure a second vehicle? How can you affordably insure a second car? Today, we’re answering all your questions about cheaply insuring a second vehicle.

A Multi-Car Insurance Policy is Typically Cheaper than Separate Policies

insure your second vehicle

Many American households have multiple vehicles. If your household has more than one vehicle, then it’s generally cheaper to insure all vehicles under a single policy than under multiple policies.

All insurance companies offer multi-car policies. These policies allow you to bundle together and save. Insuring two cars together with the same provider is cheaper than insuring both cars separately.

The reason a multi-car insurance policy is cheaper is obvious: an insurance company wants to attract as much of your business as possible. They don’t want you to insure your vehicles with separate insurance companies. Instead, they’re going to offer you a discount for multiple drivers and cars.

Multi-car insurance policies are also more convenient. You pay one premium each month. You deal with one set of paperwork. You deal with one insurance company or one insurance agent when things go wrong. You can renew your policy on a single renewal date across all vehicles.

Typically, a multi-car insurance policy will cover 2 to 5 vehicles. Some insurance companies, however, restrict multi-car policies to just 4 vehicles.

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Multi-Car Policies Aren’t Always Cheaper

Multi-car policies aren’t always the best option for insuring a second vehicle.

Sometimes, it can be a bad idea to bundle multiple drivers under the same policy. If one driver has multiple at-fault collisions in the past 10 years, for example, then it can be costly to bundle that driver’s policy into your multi-car policy. In this situation, you might actually want to sign an agreement with your insurance company that guarantees you won’t let that driver drive your vehicle. Otherwise, your premiums will be higher for as long as that person is living in your house.

In most cases, however, it’s significantly cheaper to get multi-car insurance than multiple single insurance policies.

What Are the Requirements for Multi-Car Insurance Discounts?

Just because you’re bundling multiple cars under the same policy doesn’t necessary mean you automatically apply for multi-car insurance discounts.

Different insurance companies have different requirements when insuring multiple vehicles. Some of the most common requirements to be eligible for multi-car insurance discounts, however, include:

  • All vehicles must be garaged or parked at the same household
  • All vehicles must be standard passenger vehicles (you may not be able to bundle commercial vehicles under a multi-car policy, for example)
  • All cars must have at least liability coverage (cars with just storage coverage, for example, won’t qualify for the multi-car discount)
  • Some insurance companies allow you to get a multi-car discount when bundling motorcycle insurance with an ordinary car insurance plan, but not all companies allow this
  • Some insurance companies require all cars to be owned by the same driver, while others allow any drivers living within the household to qualify for the multi-car discount

Ask About Secondary Vehicle Discounts for Low Mileage and Low Usage

Sometimes, you’re adding a secondary vehicle to your policy because it’s a vehicle you rarely drive. You might have a daily driver car for weekdays, for example, and a separate vehicle for evenings and weekends.

In this situation, your insurance company might provide discounts because you’re spending less time driving the second vehicle. The fewer miles you put on your vehicle, the less likely you are to make an insurance claim. Ask your insurance company about low mileage discounts and other options.

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Ask About Classic Car Discounts

If your secondary vehicle is a classic car, then you may be able to access cheaper classic car insurance.

This special type of insurance typically provides complete (comprehensive) coverage for your vehicle, but you pay a lower rate because your insurance company knows you’re putting fewer miles on your vehicle and using your classic car less than your ordinary vehicle.

If you’re adding a classic car that you rarely drive to your insurance policy, then you might be able to get a special discount rate beyond the multi-car insurance rate.

Conclusion: Multi-Car Discounts Are the Most Common Discounts Available to Customers

The most standard auto insurance discount available to the average driver is the multi-car discount. Whether you personally own multiple vehicles or your household owns multiple vehicles, you may be able to save big money on car insurance by asking about a multi-car discount from your insurance company. In almost all cases, it’s cheaper to bundle multiple car insurance policies together than it is to buy a single, separate policy for each vehicle.

Ultimately, the cheapest way to insure a second vehicle is to add it to your existing insurance policy and get a multi-car discount.

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