How to Insure a Second Car Cheaply

Shop Around for the Best Rates

Adding a second car to your auto insurance policy can be expensive. You need to shop around for the best rates and compare quotes from multiple companies to get the lowest price. Check with your current auto insurer about their rates for a second car. If you have been with them for a while, they may offer you a discount for being a loyal customer. You should also look into other insurers that specialize in multiple car discounts. It pays to search for the best rate and ask for discounts.

Drop Unnecessary Coverage

You may want to reduce coverage on the second car to save money. For example, if the car is older, you may decide to drop collision coverage. This coverage pays to repair or replace your car if you are in an accident. You can also drop comprehensive coverage, which pays for damage to your car caused by something other than a collision, such as theft, fire, or hail. Dropping these two coverage types can lower your rates substantially.

Raise Your Deductibles

Your deductible is the amount you pay out of pocket when you make a claim. A higher deductible means a lower premium. For example, if you raise your deductible from $500 to $1,000, you can lower your premium by 15 to 30 percent. If you have a good driving record, increasing your deductible is a great way to save money.

Choose the Right Vehicle

The type of car you buy for your second vehicle can also have an impact on your rates. Cars that are more expensive, such as luxury cars, will cost more to insure. Instead, you should look for cars that are inexpensive, low maintenance, and have safety features. Cars that are manufactured with anti-theft devices, such as a car alarm, will also help you save money.

Look for Discounts

Insurers offer discounts for many different things. You may be eligible for a discount if you are a student with good grades, if you have taken a defensive driving course, or if you have not had any accidents or moving violations in the past three years. Ask your insurer what discounts they offer and make sure you qualify for them.

Choose an Online Insurer

There are many online insurers that offer discounts, so you should look into these companies. They often offer low rates and discounts that may not be available with traditional insurers. Before signing up with an online insurer, make sure they are reputable and have a good track record. Search online for reviews and ratings of the company to make sure they are reliable.