What is Multi-Car Insurance and Who Needs It?

Many of us nowadays live in multi-car households. You might be a family where both mum and dad need a car for work. Your kids are growing up quickly and will soon learn to drive.
You may share a house with a bunch other people who are not family and you all have your own cars. Getting a good deal on motor insurance is essential. Banding together and opting for multi-car insurance could potentially save you money and be a lot more convenient. However, if you’re looking into insurance for a car you want to own – before you even think about buying a car, make sure you run a check to see if there is any outstanding finance on the car.

Instead of insuring each car separately, you have one policy that covers everyone. As long as each car is registered at the address, it doesn’t matter whether it’s for a family member or someone that you share a flat with or have bought a house with.

Many insurance companies are now offering this kind of insurance. It makes sense for them as they are able to get higher premiums and more customers onto the books. A lot of companies also offer discounts for each car that is added onto the policy. That can make the overall cost of insurance much cheaper as long as you pick the right product. While each car is on the same insurance, they can have their own level of cover. If you want one car to be fully comprehensive and another simply third party fire and theft, you can. Options like no claims discounts are also protected.

That means if someone on the policy has an accident or their car is stolen, it won’t affect your car’s no claims status. Some insurance companies will cover as many as six cars and 12 drivers, so for large families or groups, this can be a flexible and sensible way to get the right policy at a better price. Of course, your existing insurances may have different renewal dates. Most multi-car insurance policies work by waiting for each car to reach the end of its existing commitment and then transferring them, eventually achieving one renewal date for everyone.

There are different groups of people that will benefit from this kind of insurance policy. The most obvious are families that have more than one car. According to the statistics, that’s more than 1 in 3 family homes in the UK. It’s also suitable for families that use each other’s cars.  Some policies will also cover students who are away from home at university. If you are friends sharing a house, a multi-car insurance policy may also be a good idea. It’s important, however, to work out how people pay their share.

Of course, you might be fortunate to have more than one car yourself and a multi-car policy is a convenient and often cheaper way to put everything on one policy.

While many people, especially with the discounts companies are offering, will find multi-car insurance cheaper, this does depend on a number of factors. The types of cars that you are insuring will define the premiums, with higher-end vehicles attracting higher prices. The experience of the drivers will also impact on the premium you pay. Shopping around and finding the best deal might, for example, mean you get a better price for a new driver with one company and a healthy discount for yourself with another. Combined they may offer best value compared to a multi-car insurance deal. As with any insurance product, it’s essential that you do your research and compare like for like. Take your time to look at the market and what’s on offer before you commit to any
particular policy.

*Collaborative Post*