Cheapest Car Insurance - Both Cars Under One Policy - 3 Tips

 When you already have insurance for one car, it’s easy to add another car to the same insurance. When you do that, you need to know how you can achieve this in a way that offers you the best deal.

Owning two cars: how your insurance company sees you

When you own two or more cars, your insurance company’s view of you depends on how you plan to register the cars with them. There are two primary models by which this can be arranged:

a. both cars are listed under your name as the primary driver

b. one car is listed under your name as the primary driver, while another car is listed in the name of someone else in your household, such as your spouse or teenage child

In the first situation, your insurance company assumes (correctly) that you can only drive one car at a time. In that sense, for the overall risk you represent to the insurance company, the risk to them is about the same regardless of whether you own one or two cars.

In another situation, however, your insurance company knows that two drivers in your household can easily (and probably drive) cars independently. Therefore, the risk to them is about double when another car is added to the insurance.

Why is it cheaper to insure two cars

When both cars are under your name as the primary driver, you may be surprised at the type of contract you can get for your new insurance. In fact, your insurance premiums may not go up at all when you add another car. (Of course, this may not be the case if another car is considered a high-risk car, such as a sports car.)

On the other hand, when another car is marked on your insurance in the name of someone else in your household, your prices can double - again depending on their driving history, car type, and other factors.

Anyway, when you add another car, you want to get the lowest possible price on your car insurance.

3 tips for getting the cheapest car insurance: Both cars with one insurance policy

Here are 3 tips for getting the best price when adding another car to your insurance:

1. Gather important vehicle information for both cars and write them down: To get the cheapest price, you need to shop around. Start the process by writing down the VIN number of both cars (the car identification number, which can be found on the dashboard by looking through the windshield), make, model, and license number. Keep them ready, as you will have to refer to them many times.

2. Create a list of at least three insurance companies in addition to your current insurer: It’s tempting to only ask for an offer from your current insurance company: resist the temptation. When you use only about an hour of your extra time, you can get three offers from three companies. You may be surprised at how much they can vary.

3. Make sure you get comparable offers: When calling around, make sure you ask for similar types of coverage (collision, sickness fees, liability, etc.) and the same coverage limits when calling each company. This way, you can get comparable offers to see who has the lowest price.