What is multi-car insurance?
A multi-car insurance policy can usually cover up to five cars, and offers all the same benefits as regular car insurance.
The only difference is that the same policy covers more than one car, and insures will give you a discount for insuring multiple vehicles with them. The same logic applies when it comes to multi-car breakdown cover – with discounts being offered to those who purchase cover for multiple vehicles under the same policy.
Why choose multi-car insurance?
As multi-car insurance provides cover for up to five cars, it can be a wise option for households with more than one vehicle. One policy provides all the paperwork needed for each car and the renewal date is the same. Some insurers offer discounts for every additional car that you add to the policy.
Who could multi-car insurance work for?
- Families with more than one driver
- Couples who have a car each
- A person with more than one car
Some insurers will offer cover for drivers living at different addresses – like a child at university, for example – but not all policies support this.
Visit Admiral for Multi-Car insurance
How does a multi-car insurance policy work?
If the cars are registered at the same address, you can normally choose different levels and different excess for each of the vehicles on the multi-car insurance policy.
The 12-month policy will generally start on the date that the last car insurance is up for renewal, with short-term cover used to protect the other cars in the interim. For example, if you have one car that needs to be insured from February and another in June, the February car will be insured first but the policy will actually renew in June when both cars are covered. After the last car has been insured for a full 12 months, the policy will renew each year until you choose another policy.
Any vehicles covered must generally be for private use only, while the drivers covered by the policy can only drive all the insured cars if they are registered as named drivers for them.
If you have a van for work it cannot be added to your multi-car insurance, but you may want to check out our van insurance page.
Multi-car insurance explained
Throughout the UK there are many homes that have more than one driver, and many of those drivers have their own cars.
High rents and exorbitant house prices are forcing older offspring to rethink moving out of the family home, making it not unusual to see three or four cars outside the house. And since young professionals often share households in flat-shares, there can often be four or five cars registered to the same address.
The good news for homes like this, is that insurers have started offering discounted multi-car insurance policies which cover all of the vehicles registered at the same address in one go. And many firms offer discounts of up to around a third if you insure more than one car on the same policy.
Will a multi-car insurance quote be cheaper?
Despite the attractive discounts available, a multi-car insurance policy will not be the cheapest option for everyone.
When reviewing multi-car insurance quotes, you should compare the overall cost with the quotes you get for insuring each vehicle separately as you may find that individual policies still offer better value for money.
Often, this depends on the value and specifications of the cars concerned, as well as the experience and safety record of the drivers.
The impact of other motorists
As mentioned above, the age and experience of the motorists covered by the policy will have a significant impact on the overall cost – and whether it’s worth having a multi-car policy will often depend on your individual circumstances.
If, for example, the drivers needing insurance include a 40-year-old woman with a clean licence and a 17-year-old boy who has only just passed his test, it is safe to say that a multi-car insurance policy will increase the woman’s premium and lower the new driver’s.
If the younger driver is covering his own costs, it might be cheaper for him to take out his own policy but include one of the older, lower risk drivers from the household as a named driver (as long as the older drive will use the car). However, if the older driver is footing the bill for both policies, multi-car insurance may still work out cheaper.
It’s always a good idea to shop around to find out whether opting for a number of separate policies would be cheaper than one multi-car policy before committing.
And before choosing a multi-car insurance policy, it’s also wise to check the terms and conditions of the no-claims discount. After all, you don’t want all the motorists losing their no-claims discounts just because one of the people named as a driver on the policy has an accident.
The impact of vehicles
As you may know, all new vehicles are assigned to car insurance groups numbered from 1 to 50, with those in group 1 costing the least to insure and the latter groups costing the most. Any motorists keen to pay as little as possible for their insurance should choose a car in the lower groups – whether they are going for a multi-car policy or not.
When considering if multi-car insurance is right for your household, you need to consider the types of cars you’ll be insuring. For example, if one of the cars is a high performance sports car, you might be better off buying a separate policy from a specialist insurer. Then, look at multi-car policies for the remaining vehicles in your household.
And to avoid paying twice to insure the same car, you should find out if you can add cars to the plan as and when their cover expires.
Finally, make sure that you can arrange cover on the same policy should anyone in the household change cars during the term. Most insurers will do this, although again your choice of vehicle could affect the premium.
MoneySuperMarket aims to show you as many multi-car insurance policies as possible, so that you can find cover that suits you best. As some companies don’t want to feature on comparison websites, this means it is not possible to show you every single company – find out more about how we work.