What’s the cheapest way to insure a second car?
The cheapest way to insure a second car is by adding it to your pre-existing policy. Depending on what insurance provider you use, you can save up to 20% on your auto insurance premiums with a multi-car discount.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
Licensed Insurance Agent
UPDATED: Oct 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
So you purchased a second car and need to insure it, but what’s the most affordable approach? What’s the cheapest way to insure a second car? In this guide, we’ll answer all of your questions about finding cheap car insurance for a second vehicle.
Taking out a second auto insurance policy often is more expensive than simply adding the new vehicle to your pre-existing policy. You may even qualify for a discount of up to 20 percent, depending on your provider.
and all of its intricacies is important for finding the best rates for you. Keep reading to learn if you should consider adding your second car to your insurance and if it will be worth the price.
When you’re shopping for coverage for your second vehicle, it’s a good idea to get multiple car insurance quotes from different providers. Enter your ZIP code into our FREE tool above and immediately receive multi-car insurance quotes from reputable insurers near you.
What is the cheapest way to insure a second car?
If your family owns multiple vehicles, you’re not alone. According to DataUSA, the average number of vehicles per household is two. Unless you meet certain specifications and live in either New Hampshire or Virginia, both cars will legally require auto insurance coverage.
Are there ways to save on insurance if you insure more than one vehicle on the same policy? Fortunately, yes. Insuring two cars doesn’t have to mean incredibly high premiums. We’re here to help you find the most affordable multi-car auto insurance company for you and your needs.
But first, you need to know what actually is the cheapest way to insure your second vehicle. In most cases, you’ll save more money if you buy multi-car auto insurance, or add your new car to your current policy, instead of purchasing an entirely separate one.
Adding your second car to your pre-existing policy is cheaper because most insurance companies will provide you with a discount as a customer loyalty reward. Depending on what provider you use, that discount can be substantial.
Question: If you have more than one vehicle, can you qualify for insurance discounts?
Answer: Yes, depending on your insurance provider. Many companies offer a multi-car discount, with savings reaching as high as 20 percent.
Check out what providers offer a multi-car discount in the table below. If specific savings rates are publicly available, it has been included in the data.
Companies
Multi-Vehicle Discount Percentage Saved
21st Century Yes Not Available
AAA Yes Not Available
Allstate No -
American Family Yes Not Available
Ameriprise Yes Not Available
Amica Yes 15%
Country Financial Yes 15%
Esurance Yes Not Available
Farmers Yes Not Available
Geico Yes 25%
Liberty Mutual Yes 10%
MetLife Yes Not Available
Nationwide Yes 20%
Progressive Yes 10%
Safe Auto Yes 15%
Safeco Yes 15%
State Farm Yes 20%
The General Yes 15%
The Hanover Yes 5%
The Hartford Yes 5%
Travelers Yes 8%
USAA Yes Not Available
If your auto insurance provider doesn’t appear in the data above, it might be time to shop around for new coverage so you can take advantage of the multi-car discount rates.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
What is a multi-car auto insurance policy?
A multi-car auto insurance policy is exactly what it sounds like: a policy covering more than one vehicle. It is standard for auto insurance companies to offer policies that insure multiple vehicles, in large part because most households have more than one vehicle to insure.
According to data from the U.S. Census Bureau, 37.3 percent of households have two vehicles and an additional 21% have three or more vehicles.
If your household has more than one vehicle, then it’s generally cheaper to insure all vehicles under a single policy rather than under multiple policies. As mentioned previously, the reason a multi-car insurance policy is cheaper is that auto insurance companies want to attract as much of your business as possible.
Companies don’t want you to insure your vehicles with separate insurance providers. To incentivize you, the consumer, insurance companies offer discounts for multiple drivers and vehicles.
It ends up being a win-win for both you and the insurance company. You can bundle together your insurance needs and receive customer loyalty discounts and savings. The insurance provider, in turn, receives more business.
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 even renew your policy on a single renewal date for all your vehicles.
What are the requirements for a multi-car auto insurance policy?
Different insurance companies may have different requirements, but in general, the main requirement for a multi-car auto insurance policy is that all vehicles insured under the policy be registered to and parked at the same address.
If one of your vehicles is registered and parked at a different address than the one on your policy, and you don’t disclose this to your insurance company, it can disqualify you from receiving a payout if you file a claim for that vehicle. It may even be considered a form of insurance fraud.
Penalties for insurance fraud can range from fees and fines all the way to jail time, so you’ll want to be careful to be completely truthful and accurate when providing information to your insurance company.
How many vehicles can be covered under the same policy? Typically, a multi-car insurance policy will cover two-to-five vehicles. Some insurance companies, however, restrict multi-car policies to just four vehicles.
Does auto insurance coverage need to be the same for each vehicle on a multi-car policy?
While you will need to carry at least your state’s minimum legal auto insurance limits for every vehicle you own, you usually have flexibility about any additional coverages you want for each specific car under your policy.
You may own one car that is brand new and an older used car that your teenager drives. On the new vehicle, you can purchase a full coverage policy that includes comprehensive and collision coverage but still purchase just a basic liability-only policy for the second used car.
Even if you purchase different coverage limits on your two vehicles, you can still qualify for a multi-car discount.
What are the requirements for multi-car insurance discounts?
Just because you’re bundling multiple cars under the same policy doesn’t necessarily mean you automatically qualify for multi-car 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 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
Speak to your insurance agent to determine what your insurance company specifically requires for this discount to be applied to a policy.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
Should I ask about other auto insurance discounts for my second car?
You may qualify for other discounts beyond just the multi-vehicle discount, which can further reduce your second car auto insurance rates for your two cars.
Many discounts you can qualify for even if you don’t have more than one vehicle. This includes safe driver discounts, homeowner insurance bundling, good student discounts, and specific savings opportunities due to safety features your vehicle may be equipped with.
However, a few discounts are particularly useful for people with more than one car, depending on how that second car is primarily used.
For example, you might be adding a secondary vehicle to your policy that is rarely driven. Perhaps one car is used daily for your commute and everyday errands, but the second vehicle only gets used in the evenings or on weekends.
In this case, that second vehicle might qualify for a low-usage or low mileage discount.
The requirements for qualifying for this type of discount will vary by company, however commonly it is provided to people who drive less than 5,000 miles per year.
Take a look at the following table for usage-based and low mileage discounts available from some of the country’s major insurers. If specific savings amounts are available, it has been included in the data.
Companies Low Mileage Discount Percentage Saved
21st Century
AAA ✓ N/A
Allstate ✓ N/A
American Family ✓ N/A
Ameriprise N/A
Amica ✓ 10%
Country Financial ✓ N/A
Esurance ✓ 15%
Farmers ✓ N/A
Geico ✓ N/A
Liberty Mutual ✓ N/A
MetLife ✓ N/A
Nationwide ✓ N/A
Progressive ✓ N/A
Safe Auto N/A
Safeco ✓ 20%
State Farm ✓ 30%
The General ✓ N/A
The Hanover ✓ N/A
The Hartford ✓ N/A
Travelers ✓ N/A
USAA ✓ N/A
Insurance companies provide a low-mileage discount because you’re spending less time driving the second vehicle, making it a lower-risk of being involved in an accident. Therefore, you’re less likely to make an insurance claim, which means lower rates and bigger discounts.
Is a multi-car insurance policy always cheaper than separate policies for my second car?
Multi-car auto insurance policies aren’t always the best option for insuring a second vehicle. There are rare occasions where purchasing separate policies for your two vehicles actually might be cheaper. However it depends on what company you choose and the types of vehicles you’re looking to insure. Sometimes you can actually save money with “one driver, two cars” insurance.
However, this won’t always be the case. Sometimes, it can even be a bad idea to bundle multiple drivers under the same policy. For example, if you’re covering all family members under the same policy but one driver has multiple at-fault collisions or traffic citations in the past 10 years, it can be costly to insure that driver under 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 individual drive your vehicle. Otherwise, your rates will be higher for as long as that person is living in your house.
If your secondary vehicle is a classic or collectible car, you may be able to access cheaper rates for it by seeking out a separate classic car auto insurance policy rather than adding it to your pre-existing one. This is especially true if your current provider does not offer classic car auto insurance.
Classic car auto insurance is a specialized type of insurance that typically provides comprehensive coverage for your classic or collectible vehicle.
Usually, you’ll pay a lower rate for classic car auto insurance because your insurance company knows you’re putting fewer miles on that vehicle and using it less than your ordinary vehicle. You’re also more likely to drive carefully and safely in a classic or collectible vehicle.
Don’t be afraid to seek out quotes for your vehicles both separately and together to see which option truly is cheaper for you. You can seek out quotes for each vehicle separately with no obligations to purchase anything.
In most cases, as we’ve already noted, it will be significantly cheaper to get multi-car auto insurance rather than multiple single insurance policies.
The Bottom Line: Cheapest Way to Insure a Second Car
When you’re looking to insure a second vehicle, you’ll find that adding the second car to your pre-existing policy is often the cheapest option. This is largely because the most standard auto insurance discount available to the average driver is the multi-car discount. However, there are rare exceptions.
If you own a classic or collectible vehicle, it could be cheaper to purchase multiple lines of insurance. Similarly, if the second vehicle is driven primarily by someone with a bad driving history and high-risk insurance rates, it might be too expensive to add it to your policy.
If you don’t drive your second vehicle that often, don’t forget to ask about usage-based and low mileage discounts as well.
Ultimately, the cheapest way to insure a second vehicle is to add it to your existing insurance policy and get a multi-car discount.
Frequently Asked Questions
Are there any drawbacks to insuring a second car under the same policy?
Insuring a second car under the same policy can be cost-effective, but there are potential drawbacks. A high-risk car may increase the overall premium, and removing one car in the future may affect the remaining car’s premium or eligibility for discounts.
Can I get a multi-car discount if the vehicles have different owners?
Multi-car discounts typically require vehicles to be registered and owned by the same individual or household. Qualifying for a discount with different owners may be challenging, but it’s worth discussing with your insurance company.
Will insuring a second car affect my first car’s insurance premium?
Adding a second car can impact your first car’s insurance premium. The specific impact depends on factors like the insurer’s pricing structure, the second car’s characteristics, and driving records. Contact your insurance provider to discuss potential premium changes.
Can I insure a second car if it’s not registered under my name?
Yes, you can insure a second car even if it’s not registered under your name. You’ll need to demonstrate an insurable interest, such as a financial stake or legal obligation to protect the vehicle.
Can I insure a second car with a different insurance company than my first car?
Yes, you can insure your second car with a different insurance company if you prefer. It’s advisable to compare quotes from multiple insurers to find the best rates and coverage for each vehicle.
What is liability car insurance?
Liability car insurance covers damage and injuries you cause to others in an accident.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.