Having more than one car in your driveway is standard now in modern families, wherein one in three UK households have multiple vehicles under one roof. Whether you’re in a shared house with your adult children, have teenagers starting their first years of driving, or a couple with separate vehicles, acquiring a multi-car insurance policy may be right up your alley.
What is a Multi-Car Insurance Policy?
As the moniker suggests, multi-car insurance caters to individuals who own more than one vehicle registered to the same address. The policy can insure up to six cars on a single system, though each vehicle can have its level of coverage.
This allows you to determine the amount of excess you’ll be paying for on each vehicle, which is beneficial in road accidents as it means that the no claim discount (NCD) won’t impact other cars in the household.
How Does a Multi-Car Insurance Policy Work?
Multi-car insurance works pretty much the same way as any other car insurance, wherein it involves providing protection for you, your vehicles, and other drivers accepted under the policy. The main advantage of multi-car insurance is that it follows one renewal date for all car insurance in the household, allowing you to pay premiums conveniently on a single day.
You can also quickly start a multi-car policy just with one car at first and later add on other cars. The insurer will then ask for the renewal dates of other cars joining the plan. Keep in mind that other cars will only be covered by short-term insurance until all the vehicles in your household have been added to the policy.
What are the Benefits of Multi-Car Insurance?
Due to the nature of multi-car insurance, it’s an ideal way to cut back costs as each additional car has discounts in a single policy. This makes it cheaper than applying for separate policies for every car in the household. However, it’s best to compare your quote between multi-car insurance and standard plans as various factors can affect its costs.
Of course, another primary benefit of multi-car insurance is that it is most convenient for large families since they only have to pay a premium on one renewal date. Not to mention, it’s a secure and flexible way of providing coverage for various situations – be it for a couple with a car each, an individual with more than one vehicle, a shared household with friends, and more.
The Bottom Line: Is Multi-Car Insurance For Everyone?
Multi-car insurance can be a cost-effective approach that can cover even the biggest households. It’s also convenient for many families, but that doesn’t mean that it’s a one-size-fits-all.
Multi-car insurance may not be suitable for families with beginner drivers or high-risk drivers with a history of offenses as the premium payment for all cars will increase. This means that one lousy driver can drive the overall price of the policy up by a significant margin, while other insurance companies don’t cover high-risk drivers altogether.
In that regard, it’s best to compare the price of multi-car insurance versus individual policies so you can identify which system suits the family’s needs and lifestyle.
If you’re looking for multi-car excess insurance in the UK, get in touch with us to see how we can help.