A single car insurance policy is good enough for one person. But what if you have multiple drivers, and multiple cars? That’s where you may want to consider multi car insurance: for many, it can end up being cheaper for all involved.
Multi car insurance (also known as multi vehicle insurance) is worth taking out if you’re insuring more than one vehicle. Rather than taking out individual policies for different motor vehicles, you can combine everything into a single policy. For the most part, multi car insurance saves money.
Multi car insurance: A Rundown
Most multicar insurance policies will provide cover for five cars maximum. As such, it will offer all of the same benefits as standard car insurance. The difference is that you do the paper work of a single policy, despite having several. Your renewal dates for each one are also the same. Depending on your insurer, discounts may be given for each addition car.
Multi car insurance works for many people. In particular…
- Families who have more than one driver.
- Couples who each own their own car.
- A single person who has several vehicles.
DON’T FORGET: Multi car breakdown cover follows the same logic!
Providers of multi car insurance may give cover to drivers who live at different addresses. Examples would be children in university or a parent living in a second home to be close to work.
How multi car insurance works
Generally, cars should all be registered at the same address. From then on, it is usually possible to choose different levels and different excess on your multi car insurance policy. When you take out the policy, it will start when the last car insurance is up for renewal. Short term cover is used to protect the other cars in the meantime.
Example: If one of your cars must be insured from March and the other from July, you’ll have cover for the March car first. The policy, however, will renew in July when both vehicles are covered. When both cars have been insured for a year, your policy will renew again.
Usually, vehicles that are covered are supposed to be for private use. Drivers who are covered by the policy are only able to drive the cars that they are registered under. Unfortunately, in most cases a van cannot be added to a multi car insurance policy. In this case, you’ll have to take out separate van insurance.
Multi Car Insurance Quotes: Are they cheaper?
Those seeking quotes for multicar insurance should always compare. However, this doesn’t just mean different policies: you should work out how much it would cost to ensure all of your vehicles individually. Then you should compare each quote with the combined price of all your vehicles under individual policies.
Quotes for multi car insurance can be cheaper… But this depends very much on the specifics. It means doing a bit of careful research. The age and experience of other drivers will also have an impact on the price of your quote.
EXAMPLE: Consider the following: The drivers taking out multicar insurance are a 45-year-old man with a clean licence and a 20-year-old girl who has just passed her driving test. The multi car insurance policy will cause the man’s premium to increase: the new driver, however, will only have to pay a lower premium. Should she be covering her own costs, the man may find it cheaper to take out a policy of is own. However, he can also include another older, lower risk driver from the household as a named driver (if the older driver is using the car). But, if the older driver is paying for both policies, multi car insurance may just work out cheaper.