How much does adding a second car to insurance cost?

7 minute read Published on Apr 23, 2024 by BrokerLink Communications

Top view of 2 cars parked on outdoor parking area in front of building with sunlight and shadow on surface

There might be times when you want to add a driver to your insurance. However, there also might be times when you want to add a second vehicle to your car insurance plan. Thankfully, it is often possible to add a second car to your car insurance policy, and there are many reasons why someone might do so. Continue reading to learn more about the cost of adding a second vehicle to your policy and the cheapest way to insure multiple cars.

The cost of adding a second car to your car insurance policy

The cost of adding a second car to your auto insurance plan will vary between providers. This is because insurance companies will consider many factors when calculating rates for second cars, such as the make and model of the vehicle being added.

The good news is that adding a second car to your car insurance policy usually costs less than purchasing a completely separate policy for that car. A multi-car insurance policy is the name given to policies that insure more than one car. Thus, although your premium will rise by adding a second car to your coverage, you will still likely save money compared to buying a second independent auto insurance policy.

Multi-car coverage from an insurance company

How does multi-car coverage work? Basically, a multi-car or multi-vehicle insurance policy functions by covering more than one car at the same time. The coverage that is included in your policy will cover both cars. In addition, all vehicles listed on the policy will have the same policy terms and expiration dates, which is more convenient for policyholders. Further, anyone under the same roof as the vehicles should be listed on the policy, including occasional drivers. For example, it’s common for policyholders to add a teen to their car insurance policy.

Please note that when you have two or more cars in a multi-car insurance policy, you will still need to purchase individual coverage for each. However, the coverage for each car will still be confined to a single policy with a single premium that the customer must pay. Since car insurance is mandatory in Canada, drivers must include the mandatory insurance types in each car’s coverage. In Ontario, this means:

However, beyond this, the policyholder can choose what other coverages they would like to add for each car. For a more expensive or new car, you may wish to add comprehensive car coverage or collision coverage. Meanwhile, for a car being driven by a young or new driver, you may wish to add accident forgiveness coverage. Since different cars have different insurance needs, be sure to choose any extra protection wisely. Once you have settled on the coverages for each car, an insurance provider will calculate your premium.

What do most insurance companies require for a multi-car insurance policy?

In order to be eligible for a multi-car insurance policy from your insurance provider, you will likely have to meet the following requirements:

  • All vehicles must have the same amount of third-party liability car insurance
  • All vehicles must be used as personal passenger vehicles vs. business vehicles
  • All vehicles must be insured by the same insurance company
  • All vehicles must be parked at the same home address for the majority of the year
  • All vehicles must be owned by the policyholder

Choosing between adding a second car to your policy and purchasing a separate policy

Suppose you aren’t sure whether to add a secondary to your insurance policy or purchase an independent policy for a second vehicle. In that case, we urge you to consider the benefits of multi-car insurance policies below:

  • Cost savings as many insurance providers offer discounts on multi-car insurance policies
  • Customers only have to keep track of and pay one premium rather than multiple each year or month
  • Customers only have to deal with a single insurance company
  • All cars share the same insurance renewal and expiration date
  • Policyholders can customize their coverage for each vehicle, except for liability insurance, which must be the same for all vehicles included in the policy

The reality is that multi-car insurance tends to be cheaper than two or more independent policies. Plus, they are more convenient since you will only have one expiration and renewal date to track. The one exception to this is if one driver has an extremely poor record, find out how to check your driving record here, or if someone is brand-new to driving. With the latter, you may be better off purchasing a separate young driver's insurance policy.

The cheapest way to insure two or more cars

As mentioned, the cheapest way to insure two or more cars is typically to purchase a multi-car insurance policy. Insuring multiple vehicles with the same provider and under the same policy significantly increases your odds of receiving a car insurance discount. So, if you’re looking to save money on car insurance, this is the best way to do so.

Suppose you already have a multi-car insurance policy but want to make it cheaper. In that case, you can also alter your driving habits so that the more affordable car is driven more regularly than the expensive one.

For instance, you could start driving the budget-friendly Honda Civic more frequently, making that the everyday car on your policy, while the more expensive Tesla Model X could become the recreational car listed on your policy. This could serve to reduce your premium. Note that this method only works if the two cars that are insured under your policy vary considerably in value.

How to add a second car to your insurance policy

Are you ready to add a second vehicle to your auto insurance policy? Follow the steps below:

Contact your insurance broker

First thing first - contact your insurance broker. They can help you contact your insurance company and determine whether a multi-car insurance policy is available, and if so, how much it costs and what discount you might be eligible for.

Collect the necessary vehicle information

Step two is to gather the necessary information about the second car you would like insured by your existing policy. The information you should be prepared to collect includes the year, make, and model of the vehicle, vehicle identification number (VIN), current odometer reading, and annual mileage.

Gather driver information

Next, it’s time to collect the information about any new drivers you wish to be added to your policy. If your policy only contains one primary driver at the moment, but you want to add a second car to it, then chances are you will also need to add a second driver. Primary and secondary driver insurance differ slightly, and you should expect your premium to rise when adding another driver. When adding another driver, be prepared to provide information, such as their gender, age, date of birth, legal name, and their driver’s licence number.

Choose your preferred coverage

Since each car insured by the same policy will have its own coverage, you must choose your preferred coverage for this second car. Beyond the mandatory coverage types in your province, you can choose from multiple types of extra protection, such as comprehensive and collision coverage. If you need help determining the right coverage for your second car, don’t hesitate to ask a broker for their advice.

Select a start date

The next step is to select a start date for the new insurance coverage to take effect. If you have only just bought the car, choosing the date your policy becomes effective is a wise choice.

Review your insurance coverage

Before finalizing your multi-car insurance policy, be sure to review your coverage. In particular, you should pay close attention to your new premium because it will be impacted by adding a second car or other drivers and the limits and deductibles chosen.

Let your insurance company finalize the change

The final step is letting your insurance company process and finalize the change. This could take about 24 hours, but once finalized, your second car will be covered! This means that you can legally drive it in your province and will be covered in the event of an accident.

What is the maximum number of cars that I can add to an insurance policy?

The maximum number of cars that can be added to an insurance company varies between providers. However, each insurance company will have clear guidelines as to their limit. In most cases, insurers allow policyholders to add up to four cars to a single policy. To be sure, contact an insurance broker or agent near you.

When you shouldn’t add a second car to your insurance policy

Although adding a second car to your car insurance policy will make sense for many people, it isn’t for everyone. In fact, there are several circumstances in which adding a second car to your insurance plan wouldn’t be wise or simply impossible. We outline these scenarios below:

Your second car is a company car

If the second car you want to add to your policy is a company car or a vehicle used for business purposes, then it will not be eligible for multi-car insurance. All cars must be personal passenger cars to qualify for a multi-vehicle auto insurance policy.

Your second car is a collectible car

Classic, antique, and collectible cars all require a unique type of auto insurance. Thus, these cars are also not usually eligible for multi-car insurance plans.

The second car you want to insure does not belong to a member of your household

Third, if you are trying to insure a car that doesn't belong to someone living under your roof, you may encounter some trouble. Typically, only fully licenced drivers who permanently live in your household can have their vehicles added to an existing policy. So, if someone is only staying with you temporarily or not living with you, a multi-car insurance plan is not applicable.

Contact BrokerLink to request a free multi-car insurance quote

If you want to learn more about how much it costs to add another car to your insurance policy, contact BrokerLink for a free quote. We offer accurate and reliable quotes to all customers, whether you want an idea of how much adding a driver to your policy will cost or how much adding a second vehicle to your policy will cost. One of our licensed insurance brokers can also help explain complicated industry jargon, such as additional insured vs named insured. Get in touch today to learn more about multi-vehicle car insurance.

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