In the UK, it’s a legal requirement for drivers on public roads to be insured. But there exists a considerable breadth of options when it comes to insurance products. One form of insurance that’s proven popular in recent times is multi-car insurance.
What is multi-car insurance and how does it work?
As you might imagine, multi-car insurance policies can allow you to cover multiple vehicles, rather than just one. The insurer will provide a discount for every car added to the policy, and thus it works like buying in bulk from the same provider. The actual extent of the cover can vary between cars, so you’ll retain flexibility despite the convenience – if you want it.
Who multi-car insurance can benefit
There are certain groups which stand to benefit substantially from this form of insurance. If you’re in a situation where there are multiple drivers in the same household, then you might save money by putting all of your insurance on the same policy. This might apply equally to families, to couples who are cohabiting, and to housemates.
What happens if you need to make a claim? In most cases, insurers will keep your no-claims discount in place for the other vehicles on a policy. This is worth checking out before you sign up, however.
In fact, generally speaking, it’s a good idea to read the small print and make sure of what you’re getting, since insurers might have slightly different ideas about what constitutes a multi-car insurance policy.
Benefits of Multi-Car Insurance
There are several substantial benefits to this form of insurance.
First, it tends to work out cheaper. The administrative costs for the insurer are lowered, and these savings are passed (in part) to the consumer. With that said, if the original price would have been higher, then you might still end up paying more than you would from another insurer. Thus, it’s still important to shop around.
Bear in mind that more complex insurance policies involve more complex calculations when it comes to the premium. You can limit the cost further by providing accurate mileage, and by raising the voluntary excess you’re willing to pay.
Second, multi-car insurance will tend to be vastly more convenient. Even if you’re currently insuring many cars separately, a good insurer will tend to make it easy for you to make the switch by simply adding cars to your consolidated policy as the old ones expire. The premium you pay for the first year will be adjusted accordingly.
In some cases, your insurer will allow you to register different cars at different addresses. If you’re away from home frequently, for either work or university purposes, then this might be a substantial advantage.