Everything you need to know about insuring two cars for one driver

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If you owning two cars, you’ll need to make sure that both vehicles carry a sufficient amount of insurance coverage.

Here are some common dilemmas encountered by people who own two cars.

Why do I have to insure all my cars?

If you own two vehicles, having to buy car insurance on both is just like having to get two registrations and two license plates, says Rebecca Doran, Operations Specialist at Amica Mutual Insurance. State and law enforcement officials don’t allow you to just switch your license plate from car to car and the same applies to car insurance.

If you only insure one vehicle and it breaks down, you may be tempted to use your second car, which doesn’t carry insurance. But if you have a wreck “you put yourself in jeopardy” financially, says Alicia Charles, Vice President of Direct Distrubution at National Telesales-Persoal Insurance.

How to get lower car insurance rates

Being the only driver with two cars may result in a lower premium for your second vehicle, assuming you drive it less.

If you have a seasonal vehicle – say you live in northern Michigan and only drive your sporty convertible in the summer months – you may be able to get lay-up coverage, which reduces the amount of coverage on the vehicle and reduces your premiums.

You need to retain minimal liability insurance coverage on your vehicle regardless of the time of year. However, you may be able to reduce your liability coverage during the months it’s paid up, Doran says. If you dropped liability insurance entirely, you must turn in your registration to the state.

You also should retain comprehensive coverage in case your vehicle is stolen, vandalized, or catches on fire during the off-season, says Charles.

How auto insurance rates are determined

Some car insurance companies rate a specific driver to a specific vehicle, and the highest-rated driver may be assigned to the highest-rated car. In other words, the riskiest driver is assigned to the most expensive vehicle to insure.

Car insurance companies want to assess risk appropriately, says Brandt Minnich, vice president of marketing at Mercury Insurance Group. A wife who drives a minivan back and forth to work will be considered a lower risk than her husband, who drives his sedan around town all day to make sales calls. The mileage driven each year, as well as how a vehicle is used, can impact car insurance rates.

Risk is even higher with teenage drivers, who are less experienced behind the wheel and have a higher frequency of accidents, Minnich says.

Another key factor for assigning risk is your driving record. Unlike your age and whether you must use your vehicle for work, “your driving record is something drivers can control,” Charles says.

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How to get lower car insurance rates on a multi-car insurance policy

Everything from collectible cars to your family sedans can be eligible for multicar discounts on your auto insurance rates, so you’re generally better off buying all your auto insurance policies from one company. Charles says multicar discounts often are around 15% to 20% but could be higher.

And the discounts don’t just apply to husband and wife or parents and children. Many companies extend multicar discounts to all members of the household. “The type of relationships really don’t matter in a family policy,” Charles says.

Frequently asked questions

Can I insure two cars at once?

Yes, you can insure two cars at once. It is possible to have multiple vehicles insured under one policy. Insuring multiple cars under the same policy may provide convenience and potential cost savings through a multi-car insurance discount.

Does adding another car increase insurance rates?

Yes, adding another car to your auto insurance policy will increase your premium. The average premium increase varies depending on the make and model of the vehicle, the model year, and your location.

However, many insurance companies offer a discount for insuring more than one vehicle on a single policy.

Can you get lower premiums on a collectible car that’s rarely driven?

You can often insure your vehicle through your regular car insurance company, but you might be able to save money if you go with an insurer that specializes in collectible vehicles. If you only drive the car occasionally, such as to car shows or in parades, you’re probably not putting many miles on your vehicle, so premiums can be quite low, Doran says.

When can you “stack” coverage?

“Stacking” car insurance coverage allows you to collect from more than one policy you own to cover all your medical bills and property damage.

Stacking auto insurance coverage can get complicated because it’s not allowed in all states, and there can be variations based on the type of policy you have.

While you may be able to stack coverage, you need to weigh whether it’s worth the extra cost because you’ll be paying higher premiums, says Minnich.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.

Everything you need to know about insuring two cars