Pros & Cons of Multi-Car Insurance

Car insurance is a major decision for every motorist, and it is important that you find the right policy for your needs. For those that have more than one car at home, you might want to consider a multi-car insurance policy as an easy way to get coverage for multiple cars. Multi-car insurance works well for many households, but it is important to understand exactly what this type of insurance covers along with the main benefits and drawbacks.

What is Multi-car Insurance?

Multi car Insurance

As the name suggests, multi-car insurance is a type of policy that will give you coverage for more than one car. There are 26 million households in the UK that own more than one car, and multi-car insurance can be a great solution that provides the same protection as standard car insurance with the ability for households to share cars with ease.

How Does it Work & What’s Included?

Multi-car insurance allows you to insure multiple cars under one policy, provided they are registered to the same address (they can be registered to different motorists). The most common type involves coverage for 2 or more vehicles on one policy, with the same level of cover for each driver. Alternatively, you can have a linked multi-car insurance policy that is built up of individual policies with their own level of cover for greater flexibility. Multi-car insurance is the same as standard cover, including a no-claims bonus for each individual car.

What are the Pros?

One of the main benefits of multi-car insurance is that you can usually make big savings by insuring multiple cars under one policy, as opposed to individual policies. It can also simplify your car insurance with one set of paperwork to complete, and it is an ideal option for households that have multiple drivers registered to one address.

What are the Cons?

In terms of drawbacks, you might find that you end up paying more if you have someone that is a high-risk driver on your multi-car insurance policy (such as a new driver) and some companies may not even offer insurance for high-risk drivers. You also need to factor into your budget that you have one renewal date, which can be tricky to manage. The discounts can vary, so it is always a good idea to shop around for multi-car insurance (as with any insurance policy).

Multi-car insurance can be a great option for many households with multiple cars and can provide benefits over taking out individual policies, but there are considerations. As with any type of insurance, you should always research the type of cover to learn more about it and shop around to find the right policy for your particular needs.