Adding a New Car to an Insurance Policy

When you purchase a second or third car, you may add the vehicle to your existing insurance policy rather than taking out separate insurance on the new automobile if it isn't one of the cheaper cars to insure. Adding a new car to your current policy may reduce the costs of insuring your vehicles and minimise the paperwork involved. Amending your policy to add a new car will raise your premium; however, you will generally pay less for a single policy that covers multiple cars than for separate policies.

Adding a New Car

As soon as you purchase your vehicle, contact your insurance provider to have your policy amended. Your insurance representative will require details about the new automobile, such as the make, model and vehicle registration number, in order to add the new car to your policy. Adding a high risk vehicle to your policy, such as a modified specialty auto or a high performance sports car, may require new underwriting and will likely raise your premium.

Your level of coverage and your insurance rates may change when you add a new car. For instance, if you currently own an older car that is covered by basic third party protection, and you add a brand new vehicle to your policy, you may need to upgrade your auto insurance to a comprehensive plan that insures the new vehicle against fire, theft and accidental damages. If you've purchased your car on a loan, your lender will require that you carry fully comprehensive coverage until the loan has been paid off.

If you are adding a new car along with a new driver, your rating may change to reflect the new driver's details and driving history. Adding a newly qualified motorist or a driver with motoring convictions to your policy will raise your rates. However, your household may save money when you add another driver and a new vehicle to your policy rather than purchasing separate cover. Discuss your alternatives with your insurance provider to find the most cost effective arrangement.

When amending your policy to add a new vehicle, your claims bonus generally will not apply to the new car. Insurers generally require that you earn a no claims bonus, or a discount for making no claims within a policy period, on each vehicle separately. However, you may claim a discount on the new car if it's been fitted with safety or security devices, such as anti lock brakes, air bags, a tracker, immobiliser or high performance locks. Make sure your provider is aware of any of these devices when you request a quote on the new car.

Multi Car Insurance Policies

Multi car insurance is a specialised type of cover that includes more than one car under a single policy. Multi car insurance is generally intended for multiple automobile owners in the same household. You and your spouse or you and your spouse and teenager may apply for a multiple automobile policy rather than insuring cars separately. With a true multi auto policy, the insurance provider takes each driver's needs and driving habits into account in order to establish a rate that suits all drivers involved.

Multi car insurance may save money in some cases, but for some households, purchasing separate policies is more affordable than a multiple car plan. Compare quotes before you make a decision to take out a policy with other car owners in your household. Whilst adding a new car to an insurance policy may be simple and cost effective if you are the owner of both vehicles, adding other drivers and their cars can become complicated and may be costly.

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