IS ADDING ANOTHER CAR TO YOUR INSURANCE CHEAPER?
AND OTHER FREQUENT QUESTIONS ABOUT AUTO INSURANCE
At MOK INSURANCE, we believe clear information makes all the difference when choosing coverage. When looking for auto insurance, it is normal to have questions. Here we answer some of the most frequently asked ones:
DOES ADDING ANOTHER VEHICLE TO YOUR INSURANCE POLICY MAKE IT CHEAPER?
It does not lower the total premium, since you are insuring more vehicles. But it can reduce the price per vehicle, thanks to the multi-car discount.
Example 1 (when appropriate):
- One car: $160/month
- Two cars on the same policy: $280/month → $140 per car
Example 2 (when the second auto insurance is higher):
- Car 1: $160/month
- Car 2 (high value): $250/month
- Total separately: $410/month
- Joint policy: $360/month → $180 per car
Summary: The total goes up because you are covering more vehicles, but each one may cost less. However, if the second car already has a high premium on its own, the savings may be smaller.
DOES ADDING ANOTHER DRIVER AFFECT THE PRICE OF INSURANCE?
Yes. Adding a driver can increase or decrease your premium depending on their driving record, age, and insurance experience.
- If the driver has a clean record and experience, they can reduce the total risk and help lower the cost.
- If the driver is young, inexperienced, or has violations, the price is likely to go up.
Insurance companies evaluate all drivers included on the policy, so be sure to list any household members who regularly use the vehicle. Not including a regular driver can cause problems when filing a claim.
DOES THE DEDUCTIBLE AMOUNT AFFECT THE PRICE OF INSURANCE?
Yes. The deductible is what you pay out of pocket before the insurer covers the rest.
- $500 deductible: Greater insurance coverage → higher premium.
- $1,000 deductible: You assume more risk → lower premium.
It’s not a matter of whether the deductible is “high” or “low,” but rather how much risk you assume and how much the insurer assumes. If the car is financed, there may be restrictions on the allowable deductible.
WHAT AFFECTS THE PRICE OF INSURANCE?
Your insurance rate is based on several factors.
About the driver:
- Age
- Driving history
- Insurance continuity
- Credit score
About the vehicle:
- Year, make, value
- Safety features
- Repair costs
- Whether it is sporty or luxury
About the environment:
- Zip code
- Vehicle use
- Number of drivers on the policy
Each insurance company may use different criteria, but these are the most common factors used when pricing a policy in Texas.
DO I ONLY NEED INSURANCE IF THE CAR IS FINANCED?
No. In Texas, you are required to have at least liability coverage, whether you own the car outright or it is financed.
If it is financed, the lender usually requires comprehensive and collision coverage as well.
If it is financed, the lender usually requires comprehensive and collision coverage as well.
Ready to get a quote?
Call us at 682-224-6466 and 817-615-9399
Email us at service@mokinsurance.com
A MOK agent will help you find the right coverage at the lowest price.