According to government data, 32% of households in England own two or more vehicles, and this rises to 59% if you live in a rural town. Multiple car ownership is steadily on the increase, and this is fuelling an increase in the popularity of multi-car insurance policies that enable you to insure more than one vehicle within a single policy. They can save you as much as 10% of the premium for each car, and the only requirement is that all of the vehicles must be registered to the same address.
If you have more than two vehicles in your household it’s definitely worth looking into a multi-car policy, although there are a few things you should be aware of before proceeding:
If you have two or more cars of a similar value, and drivers who are of a similar age, then multi-car insurance policies can often prove to be the cheaper option. This isn’t always the case though – especially if one of the vehicles is a high performance car, or one of the drivers is younger and in the “at risk” category. We always recommend you compare a multi-car premium with separate premiums for each vehicle and driver before making a decision.
One of the benefits of having a multi-car insurance policy is that you can synchronise your renewal dates, meaning you will only have to shop around for your car insurance once a year. It also means that you could end up with a very costly bill if you pay annually though, so you may want to consider paying monthly instead. Most policies will allow you to keep separate renewal dates if you prefer, applying a discount to each vehicle as it comes up for renewal.
Your no-claims bonus could be affected if another driver on the policy makes a claim. This is not always the case but it’s worth checking before you sign up.
Different vehicles, different requirements
You can usually get all the benefits of separate policies such as varying levels of cover and a different excess for each vehicle, but this is also worth checking.
Michael Ward, Managing Director of PayingTooMuch.com said “Multi-car insurance policies are becoming more and more popular, and insurance providers can offer very competitive terms to win this business. As with all types of insurance though it depends on your individual circumstances as to whether or not it works out cheaper and easier for you. An online comparison site such as PayingTooMuch.com can help you easily decide which route is best for you.”