Adding a New Car to an Existing Insurance Policy
Adding a new car to an existing insurance policy could be needed for many reasons. As the circumstances of our lives change, so to do our insurance needs. As our families grow, so to do our policies and what they cover. If you will soon need to add another car or driver to your insurance policy you will want to know exactly what the process is and how it will affect your premiums
The Process
Almost any decent car insurance policy you could own will offer some kind of provision for you to add another vehicle to the cover. In most cases, however, the car you are insuring must be for the same purpose as the originally covered vehicle. So, if you are already insured on a car for personal driving you will not be able to cover a taxi or a company car on the same policy.
Also, if the driver is not you, they will need to have a driving record that is reasonably close to yours. That does not mean they cannot be younger or less experienced (as they will be in most cases) but they can't have a significantly dirtier license than you as it will cause too much discrepancy in premium setting. When you have all the details set you can make your application to your insurance company.
While the exact process will vary depending on who you hold your policy with, it is generally just a matter of informing them of all the relevant information on the driver (their age, their record and their relationship to you) and the car (make and model, history, price). The named driver does not necessarily need to be the owner of the car but they do need to be the one who will use it most often. For many people adding a new car to an existing policy, the driver will be a student. If this is the case there are some options available to lower your premiums.
Some insurance companies offer discounts for students applying for Car insurance. As young people are generally given high premiums, this can be very helpful when applying for insurance. Try and find an insurance company who offer a Good Student discount. This will offer insurance rewards to students who deliver consistently strong marks. Linking a student's academic record to their driving in this way can help cushion the blow of higher rate premiums and give them double motivation to stay safe on the road and perform well in University.
As young drivers will affect the premiums you pay, you should also look into the type of car they are insured on. Generally speaking you are better off keeping a driver under 25 in a second hand vehicle as the insurance rates will be much, much lower. If you are insuring a young driver who is not a student or does not have a good driving record you may be better off insuring them individually instead as it will cause problems with your own premium.
There are many, many reasons for adding a new car to an existing insurance policy. For whatever reason you do it, it is important to know the process and what the available option are for you in this situation. Don't let a new driver on your policy cause your premiums to sky rocket. Look around for a strong policy which covers you and the new driver adequately while keeping you insurance rates as low as possible. Then you can be safe in the knowledge that both your new driver and your bank balance will be protected.