Households that have more than one car can get very cheap car insurance through a multi-car policy. By covering vehicles under one policy, you will be able to save time and money. In this guide we hope to provide a quick overview of multi-car cover.
What is multi-car insurance?
Plain and simple, multi-car insurance allows you to insure two or more vehicles under the same single policy through the same provider.
How does multi-car insurance work?
Generally speaking, this type of cover is available through the following two ways:
Linked policies - Each vehicle will have its own policy, this allows drivers to select the individual level of cover for each car, along with the optional extras. In addition, all policies are linked under your name.
One policy for multiple cars - Alternative to this is to have all of your vehicles under one single policy. This will mostly mean that cover will be the same for each car.
What happens at my renewal?
Drivers that have linked car insurance policies will likely have separate renewal dates. However, those with one individual policy for all their cars will have the same renewal date as these should align together. One of the many benefits of multi-car insurance.
As an example, you may have a single car insurance policy to which you can add multiple vehicles too. Under these circumstances, the renewal dates for each extra car will align with the original policy date. Similar to any type of insurance policy, this may vary between different providers. Buyers are advised to read the terms and conditions to help them better understand how the above applies to them.
Who is multi-car insurance for?
As the name suggests, multi-car insurance is for anyone who has more than one car within their household. Customers who could benefit from this type of cover include the following examples:
- A couple or family living together with two or more cars
- A couple living at separate addresses with their own individual vehicles
- A family with children who live elsewhere in the UK and have their own vehicles
Am I able to add multiple drivers to a multi-car policy?
Yes. You will have the option to add multiple named drivers along with multiple cars on your policy. It's worth checking with your provider to see how this would affect your annual premium and level of cover.
What about my no claims discount?
The no claims bonus will belong to the primary driver on the multi-car insurance policy. This means that if you were to add an additional driver to the policy and they decide to pursue a claim, this will affect the primary driver's discount.
Can a van or motorcycle be added to a multi-car policy?
You will not be eligible to include vans and/or motorcycles on a multi-car insurance policy. For these, you will need to purchase separate cover.
Will my insurance be cheaper with multi-car cover?
Generally, you should expect a discount on your annual premium, as multi-car insurance policies are designed to be a cheaper and more convenient option. Although, it's worth remembering that each car's insurance group will be a rating factor. Adding vehicles from a higher insurance group could dramatically increase your costs, and for this reason it may be a good idea to insure each car separately if this is the case.
Are there any drawbacks?
Despite the added convenience, there is no guarantee that your policy will actually be cheaper. It's highly recommended that you compare the combined cost against prices for insuring each car separately.
Insurers have to factor in everyone's risk of a claim when they provide you with a quote. This means a less-experienced driver, or driver with previous motoring convictions, could raise premiums for everyone else on the policy. Should this be the case, it may be cheaper to insure your cars separately.
Depending on how the policies are linked, if one driver pursues a claim it could increase the future price for other drivers who are on the policy.
What information will I need to get a quote?
To get a quote for multi-car cover, you'll need the following information:
- The number plate and/or make and model of each car
- Any existing renewal dates
You will also need the details of each driver:
- Their name and date of birth
- Any previous insurance claims they have made
- Any previous driving convictions
- Any existing no claims bonus
What else can I do to save money on car insurance?
Multi-car insurance isn't the only way to save money on your total premium. The following tips will also help you cut costs:
- Increase your voluntary excess
- Build up a no claims discount
- Add a named driver
- Pay for your car insurance annually rather than monthly
- Improve vehicle security
- Reduce your annual mileage
- Use an online price comparison site
- Only purchase what you require
- Consider telematics cover
- Avoid car modifications e.g. cosmetic and performance
In summary, multi-car insurance is a great way to save money for households with more than one car. Having cover under one policy can simplify the admin side of things through aligned renewal dates. However, this type of policy doesn't guarantee lower costs for everyone, so it is highly recommended that you compare cover separately too.