Auto insurance coverage is a legal necessity for all car owners. If you are looking to add an additional car to your existing policy, you can, of course, expect your premium to go up. That said, there may be some things you can do to keep the overall cost down. Here are some tips to keep in mind when adding another car to an existing auto insurance policy.
You Will Have to Pay for the Basics on Both Cars
While there are some exceptions in certain states, many auto insurance companies require policyholders to maintain similar coverage for every car that is on their policy. For example, if you have $5,000 in coverage for medical expenses in relation to car number one, you might be expected to maintain that same amount for car number two. Talk to your insurer about their policies and the laws in your state to see if there are any places where you can lower coverage if desired.
You May Want to Drop Collision or Comprehensive Coverage Completely on the Older Car
If you are adding a brand-new car to your existing policy, you will, of course, want to opt for a low deductible in order to protect your investment. If the new car will be replacing a much older vehicle that is already paid off and starting to show signs of wear and tear, you might want to see if you are eligible for removing something like collision coverage. Keep in mind this means you won't get a payout for physical damage to the car during an accident, but doing this will significantly reduce your total premium while still keeping your older car legal for the road.
See If There's Anything Your Teen Can Do to Help
If the reason you are adding a new car is that your teen now has a car of his or her own that will be covered under your policy, you can expect your rate to go up a good bit. This is because teens are seen as risky business in the eyes of an auto insurance provider. But your teen might be able to help at least a little bit. See if the policy provider offers a discount for good grades or taking a driver's education class.
Adding another car to your existing auto policy will obviously cost money, but you might be able to tweak your policy in order to keep your total costs down. Talk to your auto insurance coverage provider today for more information.
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