Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jul 14, 2021

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In a nutshell...

  • In almost every state, car insurance is a legal requirement, no matter how many cars you have.
  • Unfortunately, adding an additional car to your auto insurance policy will increase your rates as your insurance carrier is assuming additional risk for you.
  • However, there are steps you can take to help balance the increase out such as asking about discounts, increasing your deductibles, and dropping any unnecessary coverage.

If you have recently added a new car to your family or are thinking about doing so, you may be wondering how much it will set you back.

The good news is that no matter how many cars you need to insure, you can find the best rates by using a car insurance price comparison tool.

These tools are a fast and convenient way to compare the different policies and premiums available to you.

Enter your zip code above to get FREE car insurance quotes today!

The Legal Requirements of Car Insurance


With very few exceptions, each state in the nation requires its drivers to carry some level of car insurance. The types and amounts of coverage will vary, however, auto insurance is a legal requirement.

Not abiding by car insurance laws can have many severe consequences including:

  • Large fines
  • Imprisonment
  • Suspension of your driver’s license
  • Suspension of your car registration and tags
  • Community service

Out of convenience or financial need, it may be tempting to go without insurance for your second vehicle, however, the potential consequences are not worth the risk.

Additionally, you could be found liable in civil court for the physical or property damage to other drivers or passengers and forced to pay for those damages.

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Does it cost more to add a car to your insurance?

Adding another car to your auto insurance policy will increase your rate. This is because the car insurance company is insuring an additional vehicle and assuming risk on it, just like other vehicles on your policy.

If something happens to this additional vehicle on the policy and you file a claim, they will likely need to pay it.

This may not be the news you wanted to hear, however, the silver lining is that most car insurance companies will offer a discount for having multiple cars on one policy.

While your premium will still increase by adding a second vehicle, it will still be less expensive than insuring the two vehicles on separate policies.

Other Ways to Save Money on Car Insurance

If adding another car to your auto insurance policy isn’t in line with your budget, there are other ways to reduce your premium.

Some other choices include:

– Consider Your Vehicle Choice

The cost of your car insurance premium is highly dependent upon the type of vehicle that you drive. If you drive a newer car, you can expect your premium to be higher.

Cars with poor safety ratings or that are more likely to be broken into or stolen will come with higher premium price tags as well.

You can talk to your car insurance carrier to find out which vehicles might be better options when it comes to the price of your insurance premiums.

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– Increasing Your Deductible

The amount of your deductible is inversely related to the price of your premium. This means that if you select a lower deductible, your premium will be higher.

Whereas, if you select a higher deductible, your premium will decrease. Increasing your deductibles will decrease your overall premium.

This step is a smart move for many drivers, however, you need to be sure you can pay the deductible if you need to file a claim on your policy.

– Decreasing Coverage on Some Vehicles

If you want to reduce your car insurance premium, you should spend some time examining your current coverages.

If you own a vehicle free of a lease or financing or have an older vehicle that is not worth much, it may be a good financial decision to decrease the coverage types you have selected for it.

Keep in mind that without these particular coverages, you may be left without a vehicle or need to pay out of your own pocket for any repairs or a replacement vehicle.

– Inquire about Available Discounts

Many drivers are unaware of the discounts that are available to them on their car insurance premium simply because they fail to ask.

Taking the time to inquire about any discounts you may qualify for can leave more money in your bank account each month.

Most insurance companies offer the following discounts:

  • Safe driver/accident-free– If you have not had an accident or filed a claim in the last couple of years, your car insurance company may reward you for being a safe driver.
  • Loyalty Many auto insurance carriers are starting to give customers discounts for staying with them.
  • Military/veteran – If you have served in the military or are currently serving, you will be eligible for military or veteran discounts if offered through your insurance company.
  • Limited mileage – If you drive a limited amount of miles each year, you may be able to pay less on your auto insurance. People who work from home or take the bus often benefit from this type of discount.
  • Occupational – Some car insurance companies will reward drivers who are involved in a certain profession such as nurses, firefighters, or police officers.
  • Multi-policy If you have your auto insurance through the same company as your home, life, or other insurance, you will likely be able to receive reduced rates.
  • Multi-car  As previously mentioned, you will likely get a discount from your carrier for insuring more than one vehicle on your policy.
  • Defensive driving course Whether you have a teen driver who took a defensive driving course, were court-ordered to take one, or are a senior who wanted to take such a course to improve your driving skills, you can get a discount for completing one.

While adding an additional vehicle to your auto insurance policy will increase your rates, you can help balance the increase out by taking steps to bring your premium down.

Enter your zip code below to compare car insurance quotes online for FREE!