Adding a New Car to an Insurance Policy

Adding a new car to an insurance policy can affect your premiums. Depending on the risk factors of the new car, your premiums may either rise or fall after adding the vehicle. If you are adding a car that belongs to another driver, you may be in the market for a multiple car insurance policy, which allows you to insure multiple drivers and vehicles under the same contract.

If you're buying a second car, your existing third party fire and theft policy may cover the new car for a limited period of time. Some providers allow up to 30 days before you notify them of the new purchase, whilst others allow 2 weeks or less. Your insurer may or may not allow you to modify the benefits or excess for the new vehicle. Because each company has specific requirements for adding new cars to your policy, it is important to contact your insurer for the proper guidelines before you buy the vehicle.

Car Insurance Rates

Rates for covering a new car may vary depending upon the type of vehicle you've purchased. The higher the probability that a vehicle will be involved in an accident, stolen or broken in to, the higher your rates will be. In general, fast, heavy cars with large engines have higher rates than small, fuel efficient economy cars with a low acceleration speed.

If you own a popular, low risk family sedan and you add a high performance sports car to your cover, you may end up with higher rates. However, an insurance company may offset these costs by giving you a discount for insuring multiple vehicles. The best multiple vehicle policies involve more than simply adding a new car to your insurance policy. A multiple car policy takes the needs and risks of each driver into account, then combines these factors to help you all achieve cheaper premiums.

Often a policyholder will add one or more named drivers to a policy, allowing each of the other drivers to operate the same vehicle. In this case, the driving history of the named drivers may affect your rates. If you add a motorist with a history of convictions to your cover, or a newly qualified driver with a high risk for accidents, you may pay higher premiums as a result.

Requirements for Insuring Multiple Cars

As the car insurance industry grows more competitive, providers are keen to increase their business by encouraging drivers to add new cars to their standard policy. In order to achieve the maximum discounts, you may be required to meet certain conditions. Some companies will only offer the multi car discount to spouses or domestic partners, whilst other companies will allow any members of the same household to combine their cover.

Some multi car discounts apply only to comprehensive car insurance policies. Comprehensive car insurance is the most extensive level of auto coverage, insuring your vehicle against accidental damages, fire and theft. Cost conscious drivers who prefer a less expensive level of cover, such as third party fire and theft, may find that the savings from a multi car policy are not worth the extra cost of comprehensive car insurance.

When you are adding a new car to your insurance policy, inquire about the status of your no claims bonus. In general, a policyholder must earn a separate no claims bonus on each car that he or she drives. When multiple drivers are named on the same policy, the regular policyholder is typically the only driver who earns a bonus. However, many car insurance companies have revised these guidelines in order to make their policies more attractive to customers.

Find the Best Car Insurance Rates in the UK

Get Quotes

Car Insurance Quotes

Browse By City