How does multicar insurance work?

What am I covered for with a multicar insurance policy?  

Multicar insurance cover simply insures multiple cars under the same policy. This means that you will get the same level of cover on all vehicles. The different types of cover available for this type of insurance are:  

• third party – the cheapest level, you’re only covered against damages caused to other people and their cars or other property 
• third party, fire and theft – as well as third-party insurance, you also benefit from cover if your car is broken into, stolen or set on fire 
• comprehensive – the most expensive level, you get cover for the things listed above as well as any damage to your own vehicle if an accident is your fault, and medical expenses, but this can differ between insurers 

Remember, you can opt for higher levels of cover for certain cars whilst still benefiting from a multi car insurance discount. 

Just like with other car insurance policies, you’re usually covered for one year. When that year is over, your policy will either be renewed, or you can shop around for a new one. Since it is a legal requirement for drivers in the UK to have car insurance, most policies tend to auto-renew unless you specifically tell your provider that you want to switch ahead of time. Remember, that just because your policy is auto-renewing, it doesn’t mean that you’ll be paying exactly the same amount and receive exactly the same cover. Even if you are, it may no longer be the best deal on the market – so you should always shop around.  

Am I eligible for multicar insurance? 

If you live with one or more people, (whether that be friends or family) and have more than one car between you, you're probably eligible for multi car insurance. It can also be an ideal option someone who drives more than one car on a regular basis.  

There are some eligibility factors that you need to consider, though. For instance, there is usually a maximum of six cars that can be on a single policy. However, this does differ from one insurer to the next – you may be able to find a specialist one if you want to insure more cars. In many cases, you also need to be living at the same address as each vehicle is registered to. Although, some providers allow you to add university students who have a separate term-time address, as long as their home address is the same as the one on the policy document. 

What is the advantage of multicar insurance?  

There are a number of reasons why you may be considering a multicar policy. Here are some of the advantages, as well as what you need to watch out for: 

More affordable  

Multi car insurance can be more affordable than getting several single car policies. This is because there are various discounts available for adding more cars to your policy. You’ll also probably find it cheaper than getting a single car policy if you’re teaming up with drivers who have been driving for a while, because age and experience play a large factor in insurance cost. 

Note: Not all multicar policies will work out cheaper, so it’s always advised that you shop around first to find the best deal for you. For instance, adding a named driver to your car could be a better option if the other person doesn’t plan to drive very much.  

Easier to manage  

Since every car keeps their own renewal date, it’s very simple to manage. If you already have cover in place, you can simply wait for that to expire and then add your car to the multi car policy.  

A group of people looking after one policy and payment might also be easier than everyone managing their own policies. But, remember the saying ‘too many cooks spoil the broth?’ Well, this can also apply to car insurance. You might want to nominate one trusted person to takecharge of the policy.  

The whole household can be covered  

Families and couples often find it easier to get a multi car policy because it’s less paperwork and more convenient – the whole household can be covered.  

It’s flexible  

It isn’t just married couples who can benefit from a multi car insurance policy. It can be used for students, families or even friends sharing a house. If you know that you’re going to be living with one or more other drivers for at least a year, you might want to consider it. 

Is multicar insurance cheaper?  

Many providers offer discounts for adding multiple cars to one policy. Due to this, multi car insurance is usually cheaper than having multiple single car policies – but not always.  

For instance, if you drive a car that’s in a lower insurance group (smaller and slower), and you’re added to a policy where the other cars are in a higher insurance group (bigger and faster), it could be cheaper for you to get a single car policy. Likewise, an older and more experienced driver might find that they’re paying more if they take out a policy with somebody who is younger and inexperienced. 

It’s important to always look at your options before taking out a new policy or renewing. That is the only way that you’ll make sure you get the best deal available to you.

Does multicar insurance affect no claims?  

If you need to make a claim, then your no claims bonus will likely be affected. But each individual under the policy still gets their own no claims bonus. So, if someone else under the policy makes a claim, it won’t impact yours.  

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Disclaimer: All information and links are correct at the time of publishing.