Motoring can be an expensive pursuit. On top of the cost of buying a car in the first place, you have to think about fuelling, maintaining, and insuring it – all of which costs a great deal. Saving money where you can is essential.
In the case of insurance, one popular way to save is to opt for something called multi-car insurance. But is this really an effective measure?
What is Multi-Car Insurance?
A multi-car insurance policy covers multiple vehicles, usually in the same household. You can arrange multiple linked policies (one for each vehicle), or you can have a single policy that covers everything.
That means less time spent worrying about insurance, and, in most cases, lower costs, too. Most policies of this kind are arranged so that you only pay once, and your coverage resets on the same day each year.
The bottom line: multi-car insurance could save you money by combining all your vehicles into one policy, making it easier to manage and often cheaper than individual policies.
Cost Comparison: Multi-Car vs. Single-Car Policies
So, is it always cheaper in every case? Well, no. The costs will vary according to your circumstances. In some cases, the savings might be substantial; in others, it might be nonexistent.
If you have multiple cars and drivers in the same home, then multi-car coverage might make sense. But if one of those cars is more expensive to insure, then this might drag up the overall costs. In other words: be careful who you tie yourself to.
Factors Affecting Multi-Car Insurance Rates
Let’s run through some of the factors that affect insurance rates in general, all of which are relevant here. Younger, less experienced drivers will tend to face higher premiums, which will be passed on in a multi-car setup. The no-claims bonuses, driving histories, location of the vehicle, and whether it’s parked on a drive or garage will all influence the price.
In 2024, insurance rates are higher than ever, despite rule changes in 2022 preventing insurers from overcharging new customers. Fortunately, there are ways of cutting your costs.
Tips for Getting the Best Multi-Car Insurance Deal
If all of this sounds appealing, then you’ll want to think about optimising your multi-car deal. Avoid pairing yourself with a more expensive driver if you can help it. Generally speaking, the more cars you add to the policy, the greater your discount will be. You can think of this as a bulk discount. Finally, it’s always a good idea to shop around for the best deal. Remember that not all insurers are on price comparison websites.
