Multi Car Insurance Guide

Why and under what circumstances is buying multi car insurance a good buy?

Multi Car insurance is a relatively new innovation in car insurance. Most people do not know that it exists and this is the main reason for its lack in popularity. The key benefits are a cost saving. This is usually higher the more cars you insure (quite logical as you can not drive two cars at the same time). The second key benefit is that it simplifies and saves time as you only have to administer one policy.

Multi car insurance has been developed as the number of two (and more) car families have increased greatly over the last decade. Typical policies are between two and five cars.

The traditional person in the past who would benefit from multi car insurance is a rich individual with many expensive cars that they would insure on one group policy. Now however, the typical buyer is not at all like that. It’s more a family that own two cars, that typically in the past would have the husband insuring his car and probably naming his wife on the insurance, the wife insuring her car and sometimes naming the husband as a driver and any children would be added to one of the cars policy. In a multi car insurance policy you will still more often than not need to name the drivers on a particular car but it does greatly simplify the admin as you do this just once and you crucially end up with just one policy.

As long as the drivers live at the same address then the policy holder / named drivers can be anyone – they do not have to be immediate family.

Saving

Because you are in effect 'bulk buying' insurance by consolidating your policies you often can make a saving. We would estimate this at about 10% but increasing if you insure more than two cars.

Set up tip

The chances are that your cars have been bought and therefore insured at different times. So it is often best to start a multi car insurance policy and then add each car as the insurance for that particular car expires.

Before you buy- Check the no claims discount policy.

You need to make sure that a claim by a named driver on one car does not affect the no-claims discount on another driver.