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IS ADDING ANOTHER CAR TO YOUR INSURANCE CHEAPER?
AND OTHER FREQUENTLY ASKED QUESTIONS ABOUT AUTO INSURANCE
At MOK INSURANCE, we believe that clear information makes all the difference when choosing the right coverage. When shopping for auto insurance, it's normal to have questions. Here are answers to some of the most frequently asked ones.
Does Adding Another Vehicle to Your Policy Make It Cheaper?
Not necessarily. The total premium generally increases because you are insuring more vehicles. However, the cost per vehicle may decrease due to a multi-vehicle discount.
Example 1 (when Applicable):
- One vehicle: $160 per month
- Two vehicles on the same policy: $280 per month → $140 per vehicle
Example 2 (When the Second Vehicle Has a Higher Premium):
- Vehicle 1: $160 per month
- Vehicle 2 (higher-value vehicle): $250 per month
- Separate policies total: $410 per month
- Combined policy: $360 per month → $180 per vehicle
Summary
The overall premium increases because additional vehicles are being insured, but the cost per vehicle may be lower. However, if the second vehicle carries a significantly higher premium, the savings may be reduced.
Does Adding Another Driver Affect the Cost of Insurance?
Yes. Adding a driver can either increase or decrease your premium depending on factors such as driving history, age, and insurance experience.
- If the driver has a clean driving record and substantial driving experience, they may help reduce the overall risk profile and potentially lower the premium.
- If the driver is young, inexperienced, or has a history of traffic violations or accidents, the premium will likely increase.
Insurance companies evaluate all drivers listed on the policy. It is important to include every household member who regularly operates the insured vehicle. Failing to disclose a regular driver may create complications when filing a claim.
Does the Deductible Affect the Cost of Insurance?
Yes. A deductible is the amount you pay out of pocket before the insurance company pays the remaining covered loss.
- $500 Deductible: Greater insurance participation → Higher premium.
- $1,000 Deductible: You assume more financial responsibility → Lower premium.
The key consideration is not whether a deductible is "high" or "low," but rather how much risk you are willing to retain versus how much risk the insurance company assumes.
If the vehicle is financed, the lender may impose restrictions on the deductible amounts permitted under the policy.
If the vehicle is financed, the lender may impose restrictions on the deductible amounts permitted under the policy.
What Factors Affect Auto Insurance Rates?
Insurance premiums are based on a variety of factors.
Driver Factors
- Age
- Driving history
- Insurance continuity
- Credit-based insurance score
Vehicle Factors
- Year, make, model, and value
- Safety features
- Repair costs
- Whether the vehicle is considered a sports car or luxury vehicle
Environmental and Usage Factors
- Zip code
- Vehicle usage
- Number of drivers listed on the policy
Each insurance company may use different underwriting criteria, but these are among the most common factors used to determine auto insurance premiums in Texas.
Do I Only Need Insurance If My Vehicle Is Financed?
No. In Texas, drivers are legally required to maintain at least Liability Insurance Coverage, regardless of whether the vehicle is owned outright or financed.
If the vehicle is financed, the lender will typically require Comprehensive Coverage and Collision Coverage in addition to the required liability coverage.
Ready for a Quote?
Call us today:
- 682-224-6466
- 817-615-9399
Email: service@mokinsurance.com
A MOK INSURANCE agent will help you find the coverage that best fits your needs at the most competitive price available.