Is it cheaper to add a second car to insurance?

It is cheaper to add a second car to insurance because in most cases, insuring your cars under the same insurance plan can discount your rates. However, it depends on the insurance provider, vehicle type, and location.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 12, 2022

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What You Should Know

  • Purchasing a multi-vehicle auto insurance policy is typically the most cost-effective option to cover a second vehicle
  • Depending on your insurance provider, a multi-car insurance discount could save you up to 20% on your premiums
  • You could also be eligible for additional savings — like usage-based or low mileage discounts — depending on your insurer

If you own more than one car, you’re not alone. According to the U.S. Census Bureau, 37.3% of households have two automobiles and 21% have three or more. But did you know that, in most cases, you can save money by insuring more than one car under the same policy? 

Insuring multiple vehicles under one policy instead of separate plans is less expensive, since insurance companies want to reward loyal customers. If you pick the right provider, the savings can be substantial.

Ready to secure an affordable auto insurance policy for your second vehicle? You can start comparison shopping to receive multi-car auto insurance rates. 

Discounts With Multi-Car Insurance

When it comes to auto insurance, rates vary by company. However, each state’s insurance department regulates premiums, mandating that the price shouldn’t be excessive or determined unfairly. That said, you can further reduce your second car’s premiums by asking insurers about other available discounts.

While the rules and requirements for discounts vary based on the provider, we’ve listed some of the most common eligibility requirements for multi-car insurance discounts: 

  • All the vehicles that need to be insured must be parked in the same household.
  • Commercial vehicles should not be bundled with private or passenger vehicles. 
  • All cars must have liability coverage.
  • Depending on the insurance provider, your second car insurance discount will only apply if the same driver owns both cars.

Again, requirements for multi-car insurance discounts depend on your insurance provider. Speak to your representative for more clarity. 

In the table below, see what major providers offer multi-car auto insurance discounts. If specifics about the savings rate are available, that data has been included. 

Multi-Car Discounts Available by Auto Insurance Company
CompaniesMulti-Car Discount Offered
21st CenturyYes
American FamilyYes
AmicaYes - 15%
Country FinancialYes - 15%
GEICOYes - 25%
Liberty MutualYes - 10%
NationwideYes - 20%
ProgressiveYes - 10%
Safe AutoYes - 15%
SafecoYes - 15%
State FarmYes - 20%
The GeneralYes - 15%
The HanoverYes - 5%
The HartfordYes - 5%
TravelersYes - 8%
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As you can see, most major providers will reward you with hefty discounts when you add another vehicle to your existing policy. 

In fact, most companies allow you to insure up to five vehicles per policy. The more vehicles listed, the bigger your discount gets. 

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Is there an insurance grace period after I purchase a new vehicle?

When you purchase a new vehicle, your insurance carrier typically provides a grace period where the new vehicle has insurance even if you haven’t added it to your policy. The grace period allows you to take your new car home from the showroom and complete any necessary arrangements before adding it to your policy.

This grace period ranges from 24 hours to one month, but you should confirm with your insurance company. However, if your car insurance provider does not offer this feature, you can’t drive the new car off the lot until you add it to your policy.

How to Add a New Car to Your Insurance Policy

To add a new car to your insurance, contact your existing provider and inquire about adding it to your policy. Since your provider wants to retain your business, they will most likely make this process as simple as possible for you.

Typically, you can complete all the necessary paperwork over the phone, and they will fax or email you a temporary policy for your second car.

Of course, you don’t have to continue with your existing insurance provider if you purchase a second vehicle. It is never a bad idea to research better insurance — shop and make some calls to determine the best alternatives to insure your second vehicle. Check reviews, customer service, and satisfaction scores to make an informed choice.

Get the Best Rate for Your Second Car 

The cost to insure an additional vehicle depends on the situation. Though paying to insure two cars is more costly than one, you can save with a multi-car insurance discount. However, to be eligible for a multi-car discount, your household must meet certain requirements. 

With some comparison shopping, you can evaluate rates and compare several plans to determine which combination of features offers you the best value.

As always, compare prices from several providers to ensure you’re getting the best deal for you and your family.

Are you ready to buy multi-car auto insurance? Comparison shopping will allow you to find out which insurance company will provide you with the most affordable multi-car auto insurance quotes.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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