Many households own more than just one car. Should you live in a multi-car home, you may wish to consider this kind of car insurance. You are then able to cover all the relevant vehicles on a single policy, so you have one renewal date and one premium. Multi car cover can save you money, as various companies offer discounts of up to a third should you insure more than a car on the same policy.
Multi-car insurance offers the same benefits as standard cover; the difference being that when you insure more than one car, the greater the discount. You may get a discount of 10% for two cars or 30% for five cars. The cars covered are usually for private use as most insurers do not cover commercial vehicles.
The policyholders may be family or friends, given that they all reside at the same address. Hence, you may wish to insure your own car and your spouse's car on a multi car policy. Perhaps you are living with a group of four friends and you wish to insure all five vehicles. The cars may have different main and named drivers. You may select different levels of cover and different excesses for each vehicle. You may purely drive your car at the weekends so you may be fine opting for a limited mileage and a sizeable excess. On the other hand, your daughter may take her car to and from the office daily so she may want unlimited mileage and a small excess.
A multi-car insurance policy does not provide you with the automatic right to drive each insured vehicle. You are only insured to drive the vehicle for which you are a named driver.
Insurers do provide discounts should you insure multiple vehicles as it benefits their business. However, the offers are not always cheaper than individual policies so ensure that you are on the receiving end of a good deal.
Moreover, the driving history and drivers' past claims history affects the total premium. The age of the driver and any past convictions also increases cover cost. Whereas, a driver with a clean claims record and a no-claims discount can lower the premium.
Make sure you check the terms and conditions of the no-claims discount. Clarify that should a named driver be involved in a car accident, it does not impact on the no-claims discounts of the other motorists within the group.
Multi car cover can be cheaper than individual policies. It can still be costly due to the number of vehicles on the policy. Hence, many customers opt to pay in monthly instalments as opposed to up front.