Multi-Car insurance

It's not unusual these days for a household to own more than one car. A family might, for example, run both a saloon and a runabout. There might even be a sports car in the garage for special occasions. Or maybe your son or daughter also has a car on the driveway.

If you live in a multi-car home, you might want to consider multi car insurance. You can then cover all the vehicles on one policy, so there is just one renewal date and one premium. Multi car insurance could even save you money, with many firms offering discounts of up to a third if you insure more than one car on the same policy.

How does multi-car insurance work?

Multi-car insurance offers all the same benefits as standard cover. The only difference is that you insure more than one car, usually between two and five - and the more cars the bigger the discount. For example, you might earn a discount of 10% for two cars, but 30% for five cars. The cars must normally be for private use as most insurers do not cover commercial vehicles.

The policyholders can be friends or family, as long as they all live at the same address. So, you might want to insure your own and your wife's car on a multi-car insurance policy. Or maybe you live with a group of three friends and you would like to insure all four vehicles. The cars can all have different main and named drivers. You can also usually choose different levels of cover and different excesses for each vehicle. For instance, you might only drive your car at the weekends so would happy to opt for a limited mileage and a large excess. Your daughter, on the other hand, might take her car to and from the office every day so would want unlimited mileage and a small excess.

Things to be aware of

Bear in mind that a multi-car insurance policy does not give you the automatic right to drive each insured vehicle. You can only get behind the wheel of a car if you are a named driver, so make sure all the information is correct when you arrange the cover.

It's unlikely that all the vehicles on a multi-car policy will have the same insurance renewal date. But you can normally set up the plan with one car and then add a second or third when its existing cover expires. Most firms will also guarantee their original quote for subsequent vehicles as long as there is no change in vehicle or circumstances.

If you buy a new car during the policy term, you should be able to arrange cover on the same policy, though your choice of vehicle could affect the premium.

Is it cheaper to buy multi-car insurance?

Insurers offer discounts if you insure multiple vehicles because it's good for their business. But it's not always necessarily cheaper so you should compare the cost of individual policies to make sure you are getting a good deal. If, for example, one of the vehicles is a high performance car, you might be better off buying a separate policy from a specialist insurer.

The driving experience and past claims history of the drivers will also affect the total premium. A young motorist or a motorist with past convictions will bump up the cost. But a driver with a clean claims record and a no-claims discount should bring down the premium.

Always check the terms and conditions of the no-claims discount. It's a good idea to make sure that if a named driver is involved in a collision, it does not affect the no-claims discounts of the other motorists in the group.

Can I spread the cost of the premium?

Multi-car insurance might work out cheaper than individual policies, but it will still be expensive because of the number of vehicles on the policy. Many customers therefore choose to pay in monthly instalments rather than up front. But bear in mind that insurers usually charge a fee and interest for a monthly payment plan, so the convenience comes at a price.

MoneySupermarket has teamed up with Admiral to offer multi-car insurance policies as part of our quest to help customers find the right policy for their specific requirements.

For hints and advice on how to cut the cost of your car insurance visit our money saving tips page.