If you have two or more cars in your household it is possible to save money with multi-car insurance.
How does multi-car insurance work?
Multi-car insurance allows you to insure more than one vehicle with a single insurance policy. With some multi car insurance providers you may be able to insure as many as five vehicles as long as all of the vehicles are registered to the same address. This means that you could potentially insure cars on the same policy for you, your spouse, your children, or even a friend, as long as you live in the same household.
The theory is that multi-car insurance policy helps you save money. This is because you are effectively bringing more business to the insurer and simplifying the bills – just as a broadband provider might reward you with savings if you tie in a phone or TV deal, multi-car insurance applies the same theory to vehicles. It’s almost like buying insurance in bulk.
In practice it doesn’t always work out cheaper than buying your car insurance policies individually however, so it is worth investigating both options.
What should you look for in a multi-car insurance policy?
Here are some things to be wary of with multi-car insurance:
Renewal dates – Some providers may link all renewal dates together, which could be expensive if you are paying annually. Ensure you can pay monthly to break the expense down.
Vehicle change – Ensure you can change your car during the policy term.
No-claims discount – You may have several years’ no-claims bonus and one of the other drivers on the policy has an accident. Most providers will only wipe out the no-claims discount of the individual involved in the claim but you should check this is the case.
Who can drive what – With multiple car insurance you will only be able to drive cars that you are registered as a named driver for.
Ensure your multi-car insurance quote is good value compared to individual policies and ask your insurer about additional discounts – such as for parking in a garage at night.