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Second car insurance

The best way to insure a second car

published: 10 July 2022
Read time: 5 minutes

If you have more than one car, it’s understandable you want to keep insurance costs as low as possible. Rather than take out two separate policies, there could be a cheaper option…

Can I buy second car insurance?

There’s technically no such thing as second car insurance, but you can buy multi-car insurance that allows you to put one or more cars (often up to five) on the same policy.

Two cars

How do multi-car insurance policies work?

Multi-car insurance policies are similar to single-car policies, except they cover more than one vehicle. They offer a more convenient and potentially cheaper way of insuring your cars than taking out a second car insurance policy.

A multi-car insurance policy could be preferable for you if you drive more than one car, you and your partner each have a car, or even if you live with friends who have their own cars.

Who is best suited to a multi-car insurance policy?

A multi-car insurance policy may be a better option over a second car insurance policy if any of the following apply to you:

  • You are part of a family living at the same address with more than one car

  • You own more than one car

  • You and your partner own separate cars

  • You house-share with other people who have cars registered at the address

What are the requirements for a multi-car insurance policy?

There are a few things you need to know about multi-car insurance before you consider this instead of taking out a second car insurance policy:

  • All cars must be registered at the same address

  • The cars under the policy must be standard passenger vehicles

  • All vehicles should have liability coverage

In some cases, all cars have to be owned by the same driver, but this will depend on the insurer

Can I save money with a multi-car insurance policy over a second car insurance policy?

You may be able to save money with multi-car cover instead of taking out a second car insurance policy, as insurance companies sometimes offer a discount for the second and any subsequent vehicles you add to an existing policy.

You can usually add up to five cars registered at the same address, with the potential discount increasing with every car added.

However, getting a discount isn’t always guaranteed. There might be times where it’s better to buy a second car insurance policy, so it is always worth comparing single-car quotes as well.

Some examples of where it might be cheaper to get single-car policies include:

  • If you have a young driver in the household or someone with a poor driving history that could be considered high risk.

  • If you have a classic car that requires specialist insurance

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  • If one car is in a far higher insurance group than the other.

Even if you take out separate policies, you might still be offered a discount, as long as it’s with the same insurer. Read more on saving money with multi-car insurance.

What about my no claims bonus?

If you’re the registered owner of both cars on the policy, you might be able to use your no-claims bonus for both vehicles to bring down the premium.

But, be aware that if you add named drivers to the policy and they are responsible for making a claim, this could affect your no-claims bonus.

Can I drive another car on the multi-car insurance policy?

If you are a named driver on another vehicle under the multi-car insurance policy, then you can drive that car. However, it’s not legal to drive another car under the policy if you are not a named driver.

What are the drawbacks to a multi-car insurance policy?

As well as potentially being more expensive than insuring the cars individually, both cars are also likely to be tied to the same level of cover. This means you probably won’t be able to have a fully comprehensive policy for one car and a third-party policy for another.

If you want more flexibility for the amount of cover and add-ons for each vehicle, single-car policies that are linked under your name may be preferable.

Switching to a multi-car policy part-way through an existing policy could also mean you'll have to pay cancellation fees and are likely to miss out on your no-claims discount for that year.

Do renewal dates have to be aligned?

If you have a multi-car policy, then normally the renewal dates will be aligned. This can make the payment process a little bit easier, with it typically falling on the same day.

If you already have a single-car policy but wish to add another vehicle to make it a multi-car policy, your provider will help. However, it’s important to note that insurers terms differ, so it’s always best to check.

Compare car insurance

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 by comparing quotes.

We also offer multi-car insurance through our preferred partner Admiral – just click through to their website and fill out a few details about yourself, your cars, and the cover you need to get a quote.

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