One individual, two car insurance policies, two cars
I live in Virginia and I’m a one-person household. I currently have an older car insured under a policy with a rate lock that lasts for another two years. This year, I’m planning to buy a second car while keeping the older one as a backup. I received an initial quote to add the new car to my existing policy, which would cause me to lose my locked rate and increase the premium for the older car by 50%, plus the cost of insuring the new vehicle.
Is it possible for me to take out a separate insurance policy just for the new car, while keeping my current policy unchanged? Or could that cause problems with either insurance company? Based on the preliminary quotes I’ve seen, insuring both cars separately would be cheaper than putting them on the same policy.
Yes, you can definitely purchase a second car insurance policy for your new car while keeping the existing policy for your older car. Many people take this approach, especially if it results in lower overall premiums.
However, there are a few things to keep in mind:
Insurance Company Policies: Some insurance companies may have specific rules about insuring multiple vehicles under different policies. It’s a good idea to contact both your current insurer and the new one to ensure there are no issues or conflicts.
Coverage Limits and Discounts: When you have multiple policies, you might not qualify for multi-car discounts that some insurers offer. Make sure to compare the total costs and benefits of having separate policies versus combining them.
State Requirements: Ensure that you adhere to Virginia state insurance requirements for each vehicle. Each car must have its own minimum liability coverage.
Claims: If you have claims in the future, having two separate policies could complicate things a bit. Make sure you’re aware of how claims would be handled with multiple policies.
Specialized Policies: If the new car has a higher value, you might want to look into specialized coverage options that could provide better protection than a standard policy.
If the cost works out better for you, going with a separate policy for the new car while keeping the existing insurance for the old car can be a smart financial move. Just make sure to read the policy details carefully and ask questions if anything is unclear!