Do you have more than one car in your household? You may be able to save money by switching to a single multi-car insurance policy rather than having several individual policies.
With a third of households in the UK now owning more than one car, multi-car insurance plans are becoming increasingly popular. Fuel and car insurance costs have risen dramatically over recent years, and many families are keen to find ways of saving money. If more than one vehicle is registered at the same address, even if they have different main and named drivers, multi-car insurance is an option that may be worth considering.
Potential benefits of multi-car insurance
- Multi-car insurance is sold on the basis that policyholders receive a discount for signing up more than one vehicle. This attracts more business for the insurance provider in a single hit, so they're happy to offer a discount and you may save a substantial amount of money if you find the right policy.
- It's easier to manage and keep track of a single multi-car policy than several individual policies because you only have to keep up with one renewal date each year, and only need to familiarise yourself with the small print on a single policy plan.
Potential disadvantages of multi-car insurance
Every car in your household probably has a different insurance renewal date if you currently have them on individual policies, so if you decide to switch to multi-car insurance you will probably have to add each vehicle on a different date, as their renewal comes around. Insurers generally cater for this, and will give you a quote for all your vehicles when you sign up the first one. Once all your cars are on the single policy, however, just remember that if you pay your multi-car insurance premium in one lump sum it could be a substantial amount to pay out in one go from your household budget – so you may need to save in advance to cover it.
Other ways to save on your car insurance
Several additional factors can help you lower your motor insurance premium:
- Consider opting for a higher voluntary excess (the amount you pay in the event of making a claim), which will bring down the overall premium.
- Add a named driver with more experience if you don't have a lot of driving experience yourself.
- Boost your vehicle's security by fitting it with an alarm or immobiliser to deter thieves and make it more difficult to steal – and tell your insurer that you've done this to see if it qualifies you for a discount.