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According to the Department for Transport, 36 per cent of households own two or more vehicles. If you’ve just acquired a second car or are considering getting one, it’s still possible to get cheap car insurance. Owning two cars won’t necessarily result in higher insurance costs.
While there’s no specific second car insurance product, the insurance industry offers a multi-car insurance solution. Our experts explain this policy option’s ins and outs and how it could be a financial game-changer for multi-car households.
Specific second car insurance doesn’t exist; instead, what many people refer to when insuring multiple vehicles is termed multi-car insurance.
Multi-car insurance is a policy designed for households or individuals with more than one vehicle. Instead of having separate policies for each vehicle, multi-car cover allows you to bundle them into a single policy. Most providers offer cover for up to five cars registered at the same address, and typically, you have the option of different cover types – comprehensive, third-party fire and theft, or third-party only, and named drivers for each vehicle.
By insuring multiple cars under one policy, many insurers offer discounts, which can lead to cost savings compared with taking out individual policies for each vehicle.
Multi-car insurance is designed for specific demographics or situations, including:
There are many benefits to be gained from insuring your second vehicle under one policy, including:
However, multi-car insurance might not always be the best option for everyone. Depending on individual circumstances, such as the type of car, driver’s age, and driving records, it could be more cost effective to have separate policies. As with any insurance product, shopping around and comparing quotes is essential to ensure you get the best deal for your situation.
As we’ve already outlined, one of the primary benefits of multi-car insurance is potential savings on your premiums. By bundling multiple vehicles under a single policy, many insurance providers offer discounts, and the more cars you insure with them, the higher the chances of getting more significant savings on your premiums.
However, while consolidating and saving might be appealing, it’s essential to consider situations where a separate policy for each car might be more economical.
Insurers often consider young drivers at higher risk due to their limited driving experience. Adding a young driver to a multi-car policy could increase the overall premium. In such cases, it could be worth exploring whether a separate young driver insurance policy might be more economical.
Insurers group cars based on several factors, including repair costs, safety features, and potential risks. Those in higher car insurance groups typically cost more to insure due to increased risk or higher repair costs. If one of your cars falls into a higher insurance group, it might influence the price for all cars on a multi-car policy, making a separate policy a cheaper option for that vehicle.
The premiums will likely increase if a driver included in the multi-car policy has a criminal conviction or has been involved in accidents. Their driving history can impact the cost for all cars under the policy, making separate policies more cost effective.
Classic or vintage cars may require specialist insurance because of their unique maintenance needs and potential for increased value over time. While some mainstream insurers offer classic car insurance as part of a multi-car policy, a dedicated classic car policy from a specialist provider could provide better coverage and rates.
A no claims discount cannot be applied to multiple cars with separate policies. The exception is when all the vehicles are insured from the same policy start date, ensuring the no claims duration remains consistent if there have been no claims during that period. However, some providers offer a solution known as a mirrored no claims discount that can reduce your premiums.
A mirrored discount allows you to use the discount you’ve accumulated on more than one policy at once. It’s important to note that insurers offering mirrored discounts often set specific eligibility criteria. For example, they might impose a minimum age limit or require a certain number of driving years, potentially excluding younger drivers.
If you possess a multi-car policy that allows for insuring several cars at a single address, each vehicle maintains its individual no claims bonus. Consequently, if you claim on one vehicle, it shouldn’t affect the no claims discount of other drivers covered under the same policy.
Yes. There are two usual methods of insuring two cars under the same name. You can take out individual cover for each car, having two distinct policies, each with its own premium, terms, and conditions. This can be more straightforward regarding management; however, it might not always be the most cost effective option.
Many insurance providers offer multi-car policies, allowing you to insure multiple vehicles under a single policy. Typically, these policies provide a discount for each additional vehicle you add. While this can often be more cost effective and convenient than having separate policies, it’s essential to understand the terms. For instance, while each car might accumulate its own no claims bonus, a claim on one vehicle might affect the premium for all the cars under the policy at renewal time.
When insuring multiple cars, syncing renewal dates can be crucial for simplifying management and ensuring continuous coverage. If you have individual policies for each car, each will have its own renewal date based on when you initiated each policy. These dates will only align if you deliberately coordinate them. With multi-car cover, it’s typical for renewal dates to be aligned for all vehicles under that policy. This means you’ll only have to remember one date for renewal; typically, this is a year after you added the last vehicle.
Always carefully review the terms of your policy or policies, especially the start and end dates, to prevent any problems. Proper management of renewal dates ensures you’re consistently covered and avoid unexpected gaps or financial surprises.
