My father-in-law has recently moved to the US and is living with us. My wife and I currently have one car insured with Geico, and we are the only two drivers on the policy. He will be taking his driving test soon and we have an old car that we’ll be giving to him since it’s no longer in use. I’d like to drive this old car once or twice a year as well.
Should I add his name and the old car to our existing auto insurance plan, or would it be better to set up a separate insurance policy just for him and his car? Which option would be more cost-effective?
It’s generally more cost-effective to add your father-in-law (FIL) and his car to your existing auto insurance plan rather than opening a separate policy. Here are a few reasons why:
Multi-Car Discount: Insurance companies often provide discounts for insuring multiple cars under one policy. By adding your FIL’s car to your Geico policy, you might take advantage of these savings.
Combined Policy Benefits: Having all drivers and vehicles under one policy can simplify billing and claims processes, making it easier to manage.
Liability Coverage: Since you plan to drive the old car occasionally, adding it to your policy ensures that you are covered while driving that vehicle.
Potentially Lower Premiums: Sometimes, separate policies can result in higher premiums, especially if your FIL may not have a driving history in the U.S. or if he’s considered a higher risk due to being a new driver.
However, you should check with Geico (or your insurance provider) to understand how adding a new driver and vehicle will impact your premium. Each insurer has different policies regarding new drivers and discounts, so it’s important to get a quote for both options before making a decision.
In conclusion, adding your FIL and his car to your existing policy is likely the cheaper and more convenient option, but it’s always wise to compare quotes to ensure you get the best deal.