What is multi-car insurance?
A multi-car insurance policy is exactly what it says on the tin, it’s a car insurance policy for more than one car. Most car insurance providers will include a multi-car insurance policy as part of their service and many will allow you to insure up to five cars on the same policy, without sacrificing any of the other benefits included in single car insurance policies.
Why would you choose multi-car insurance?
If you own more than one car then you might be financially better off if you take out a multi-car insurance policy, as many car insurance providers will offer discounts when you choose to insure multiple cars on the same policy.
Many insurance providers will offer discounts when you choose to insure multiple cars on the same policy.
Don’t forget to also check that you get multi-car breakdown cover alongside your multi-car insurance policy if you think you might need it; so that you can cover the costs should one of your cars break down. Many breakdown cover providers will also offer discounts to their customers who take out multiple-car breakdown cover with them on the same policy.
Who does multi-car insurance benefit?
If your household has more than one car then opting for multi-car insurance is worth considering as it may boost your finances. It could also reduce the stress and paperwork involved with managing several different single-car insurance policies.
A multi-car insurance policy will have one renewal date and one lot of paperwork, so it will be easy as pie to keep track of the policy when it comes to renewal time each year. Remember that for every additional car that you add to your multi-car insurance policy, you could make further savings, so it’s definitely worth thinking about.
People who could benefit from having a multi-car insurance policy are:
- Couples who each have their own car
- Families with multiple drivers
- Someone who owns more than one car
There are some car insurance providers who also offer multi-car insurance policies for named drivers living at different addresses, like if a child is living away from home. If you are keen on taking out this type of multi-car insurance then it’s a good idea to check with your insurer to see if they can offer you this service.
How does multi-car insurance work?
Multi-car insurance policies work in the same way as single-car insurance policies and you will often get more financial incentives when you add more cars to the policy. By putting more than one car on the same insurance policy, it’s often cheaper overall to pay for your car insurance and, as the cost of owning a car stacks up fast, this can be a real boost to your finances.
More and more households across the UK are opting to have multi-car insurance policies to help them to reduce their household outgoings.
As Millennials and Generation Z are struggling to move away from home due to expensive rent prices and wages not keeping pace with inflation, more and more households across the UK are opting to have multi-car insurance policies to help them reduce their household outgoings by consolidating the costs of car ownership.
Are multi-car insurance policies cheaper?
Yes, they tend to be. As the popularity of multi-car insurance grows steadily there has been an increase in the number of insurance providers who offer discounted multi-car insurance to cover many vehicles that are registered at the same address at once.
With some insurance companies offering discounts as high as one third off for insuring more than one car on the same policy, there is even more reason to look into taking out multi-car insurance.
However, it’s not a sure thing, so remember you will still need to carefully compare the quotes from different insurance providers against their single car insurance policies too, to really know if you’re likely to save money.
The quotes will vary depending on the types of cars your household owns, the drivers’ records, no-claims bonus and their experience, among other things.
How will each motorists’ details impact this type of policy?
Before you take out a multi-car insurance policy, you will need to provide your insurer with further details of the other drivers being insured before they can be added to the policy. These will include their age, driving experience, whether they have any convictions etc.
This will have an impact on the total cost of the multi-car insurance policy, so make sure you read the quotes carefully when doing your research, as depending on your circumstances, it mightn’t be the massive saving you may hope for.
Is multi-car insurance the best option for everyone?
Multi-car insurance is often a good option for households with more than one car however; there are some cases where it might not be worth taking out a multi-car insurance policy. As with most insurance policies, there is no one-size-fits-all approach and you will have to take into account your personal circumstances before you consider whether a multi-car insurance policy is right for you.
It might not always be the cheapest option due to the fact that car insurance policies take numerous factors into consideration. The experience and age of the driver, the brand and model of the car, as well as the location in which the car will be kept when it’s not being driven will all be included to calculate the perceived ‘risk’ to your insurer.
What you might find is that one car’s insurance could drive up the overall cost of the other cars included in the multi-car insurance quote. In this instance, it would be cheaper for you to take out a single car insurance policy with a separate insurer, so make sure you do your research first.
It’s advisable to consider whether any named drivers in the multi-car insurance policy will have their no-claims discount affected should you choose to commit to this type of car insurance policy. The last thing you want is to lose a no-claims bonus discount on your insurance premium, by adding a younger, less-experienced driver to your policy, or if another driver on the policy goes on to have a road accident.
If one of the cars that you wish to insure is classified as a high-performance car, then this could result in an increase in the multi-car insurance policy. If you notice this when you are comparing quotes from different insurers, you might be better off going with a single insurance policy for that car.