Multi Car Insurance
Nowadays, it is incredibly common for there to be multiple cars registered to the same household. Whether a married couple have a car each, or an older child living at home has his or her own car, or even just various friends sharing a house or flat or all have their own cars; seeing more than one car on a drive way is something we all see every day.
Insurers are now often offering discounts to those who insure all of the cars at one address in one go.
We’ll show you how you can take advantage of multi-car discounts, as well as how to work out if these kinds of policies will give you the best deal.
In this guide:
How do multi-car insurance policies work?
In terms of cover, you’ll get exactly the same level insuring one car as you would insuring multiple cars on the same policy – the key difference is in price.
Many insurance providers will allow you to cover up to five different cars on the same policy, offering discounts to those who do so.
You can, if you wish, choose to have different levels of cover and different levels of excess with each vehicle and still take advantage of the discounts on offer.
If everyone in the household is included as a named driver for each of the cars, then you’ll all be able to drive each vehicle legally.
As well as the obvious benefits of saving money on the cost of the policy, it is also practically helpful insofar as everyone using the policy in question will have just one renewal date and premium, make the whole process of payment more stream-lined.
On this point, it is worth noting that if you are taking out a 12 month policy of this kind, then it will come into effect on the latest renewal date of the cars in question. So if one of the cars you want covered is insured until March under the terms of its current policy, and another until May, then the new policy will be active for 12 months from May and temporary or short term cover will be active for the first car between March and May.
Is this kind of insurance always cheaper?
While the discounts associated with multi-car policy can be particularly desirable, this doesn’t necessarily mean that such a policy will always be cheaper than the alternative.
You should always make sure that you shop around and check how much it would cost to insure each car individually before you settle on the first multi-car deal you’re offered.
Things like the age and level of experience of all of the drivers involved will affect the cost of the premiums offered. For example, if the drivers involved include a 39 year old with a fully intact no claims bonus and a 17 year old who has had a license for 3 months, then the premiums offered will be cheaper than average for the younger driver, but more expensive for the older driver.
This means that the older driver could get a better deal by simply taking out an individual policy. However if the older driver, as a parent, had planned kindly to pay for their child’s insurance anyway, then they’d be making a saving by taking out a multiple car policy.
You should also make sure you pay close attention to the terms of the policy relating to no claims discounts. In some cases, if one driver on the policy has an accident, then everyone else’s no claims discount will be reset and obviously, no one wants this to happen.
How will everyone’s choice of car affect the cost of a policy?
Every car built to UK specifications is placed in one of 50 insurance groups as set out by the official Group Rating Panel. These groups act as a guideline for the cost of the insurance policy, with those in the lowest numbered group costing the least to insure (and vice versa).
If, in one household, one of the cars being insured is a small, old hatchback, and one is a high class Aston Martin, then in order for the cost of the policy to be fair (and low generally), you should maybe think about taking out a separate, specialised policy on the Aston, and placing the other cars in the household on the multi-car policy.
Compare Quotes to get the Cheapest Insurance Policy
Once you’ve gone through the above and settled on the number of cars you need insured, and agreed an appropriate level of cover, you’ll need to find the best multi-car deal possible given your requirements.
To check out available insurance quotes, over to our comparison page and we’ll get you a list of the best quotes on the market so that you can start saving right away.
Again, before all of this though you should have a quick look at the deals available if you were to insure each car individually. Our comparison service will help you here as well. It’s quick, free and could save you lots of money - so you have nothing to lose and everything to gain by comparing with Money Expert.