With the rising cost of living squeezing household budgets across the UK, many drivers are looking for ways to save on car insurance.
Fortunately, multi-car insurance offers a potential solution, but is it right for you? In this article, we’ll break down how multi-car insurance works, the key benefits it offers, and who can stand to gain the most.
How does multi-car work?
Multi-car insurance allows you to insure multiple vehicles under a single policy with one provider.
This can be particularly beneficial for families or couples with separate cars. Each car on the policy will still have its own individual cover level (comprehensive, third party etc.) and any named drivers will need to be declared. However, the beauty of multi-car insurance is the potential for significant discounts.
Benefit 1: Save money
The primary advantage of multi-car insurance is the cost saving. Most insurers offer a discount for each additional car added to the policy. This discount can vary depending on the provider and the specific vehicles being insured, but it’s not uncommon to see savings of 10-15% per car. Additionally, with only one policy to manage, there’s just one set of renewal documents and potentially a single administration fee, leading to further cost savings.
Benefit 2: Save time
Multi-car insurance streamlines the renewal process. Instead of renewing separate policies for each car, you only need to deal with one renewal date and one set of documents. This not only saves time but also reduces the risk of accidentally letting a policy lapse and potentially losing your no-claims bonus.
Benefit 3: Flexibility
Many multi-car policies offer flexibility when it comes to named drivers. This can be particularly useful for families with young adults who might occasionally borrow a car. Some insurers allow you to add temporary drivers for short periods, which can be handy for car-sharing situations. Additionally, if you’re considering purchasing a new car, you can often get a quote for adding it to your existing multi-car policy before you commit to buying.
Who can benefit from multi-car insurance?
Here are some key groups who can benefit the most from multi-car insurance:
- Families: Households with two or more cars are prime candidates for multi-car insurance. The potential discounts and streamlined renewal process can be a real advantage.
- Couples with separate cars: If you and your partner both own cars, a multi-car policy can offer significant savings compared to separate policies.
- Housemates sharing vehicles: If you share a car or multiple cars with housemates, multi-car insurance can be a cost-effective way to ensure everyone is covered.
Is multi-car right for you?
Before switching to multi-car insurance, it’s always wise to shop around and compare quotes from different providers. While multi-car is generally cheaper, there may be instances where separate policies offer a better deal. Consider factors like the type of car, your driving history, and the level of cover required when comparing quotes.
