How do I insure a second car?

Key takeaways

• You can insure your second car, and usually up to five cars in total, on a multi-car insurance policy, but they usually need to be registered at the same address

• Multi-car insurance can work out cheaper than taking out separate car insurance policies for each vehicle

• It’s ideal for families and couples as you can add named drivers who will be able to drive all cars on the policy

How do I insure a second car?

There are a few ways you can insure a second car:

• Take out multi-car insurance : Technically there is no such thing as a ‘second car insurance policy’ instead you need multi-car cover. This allows you to insure two or more vehicles under a single car insurance policy and benefit from a discount. The cars usually need to be kept at the same address or owned by immediate family members

• Have a standalone car insurance policy : This can be more flexible than a multi-car insurance policy but may work out more expensive depending on the type of second car you want to insure

How does multi-car insurance work?

Here are some of the features of multi-car insurance:

• Number of vehicles: You can usually add up to five vehicles on one single insurance policy but some insurers allow more. Admiral, for example, lets you add up to seven cars online or up to 20 if you call them

• Level of cover: You can have a different level of cover for each vehicle

• Excess: You can set a different voluntary excess for each vehicle

• Add-ons: You can have different optional extras, such as breakdown cover , for each vehicle

• No-claims bonus: Each car on the policy earns its own no-claims bonus (NCB), also known as a no-claims discount (NCD)

Is multi-car insurance right for me?

You might find a multi-car insurance policy useful if you’re in one of the following situations:

• You own more than one car. For example, you have a classic car in addition to a family car

• You’re in a family with multiple cars

• You and your partner have individual cars

• You live in a house share with multiple cars

📣 Did you know? About a third (34%) of households in England had two or more cars in 2024 compared to 8% in 1971, according to the latest National Travel Survey .

How do I take out multi-car insurance?

You can take out multi-car insurance:

• With your existing insurance provider: Contact them and see if they will upgrade your single policy to multi-cover during the policy term

• With a new insurance provider: To avoid any cancellation fees or admin fees you may be best switching when your current policy is due for renewal

Are there any restrictions with multi-car insurance?

Yes, some insurance providers will have restrictions with multi-car insurance such as:

• All cars must be registered to the same address

• They are all standard passenger cars

• They’re all owned by the same person

However, some insurance companies let you insure cars at different addresses if they are owned by your immediate family members such as your children.

Will my no-claims bonus be affected with multi-car insurance?

No, your no-claims bonus (also known as a no-claims discount ) won’t be affected with multi-car insurance as each vehicle and driver earns their own no-claims bonus.

This is different to adding a named driver to your car insurance policy which would impact your no-claims bonus if they had an accident.

Can named drivers drive any car on the policy?

Yes, if you are a named driver on the policy, you are legally allowed to drive the other cars included. However, it's important to note that driving a car you're not named on is against the law and could lead to serious penalties, unless you have driving other cars (DOC) cover on your policy.

Are renewal dates the same with multi-car insurance?

Yes, one of the benefits of multi-car insurance is that renewal dates will generally align for all cars, making the admin side much easier to handle.

Is multi-car insurance cheaper than separate cover?

Multi-car insurance is generally cheaper than taking out separate cover as your insurer will offer a discount for each car you add. However, this might not be the case if you’re adding:

• A modified car that increases the overall cost of cover

• A car from a higher car insurance group or with a higher vehicle risk rating

• A named driver and their car to your policy and they are a high risk driver (such as a young or inexperienced driver, or a convicted driver ) that increases the cost of cover

Car insurance providers take a number of different factors into account when setting premiums, including your age, location and occupation . It will also depend on the insurer and level of cover you choose, so it’s always good to compare your options .

How can I find the best deal on my car insurance?

Deciding between multi-car and second car insurance policies starts with comparison. If you have more than one car, the easiest way to decide whether you’ll benefit most from taking out a multi-car or second car insurance policy is to get a multi-car quote and compare this to separate policies .

The goal should be to find the balance between adequate cover and cost-effective premiums.