*Collaborative post
Considering multi car insurance? It may be a good option if you want to combine insurance policies for different cars and drivers in your household. But it’s always worth thinking about the downsides before signing up. This article explores the pros and cons of multi car insurance, so you can be more confident in your final decision.
Pros
The cost savings
Many motorists try out a multi car insurance plan because of the cost savings on offer. Having separate policies for multiple cars at the same address is usually more expensive than a combined policy. Most insurers provide a discount for every car you insure on a multi policy, up to a certain limit – so benefit as much as you can.
The convenience of one policy
Convenience is another attractive feature. Having all cars in your household insured on one policy means one payment, one renewal date and one price to haggle down. If you move, you’ll only have to change your account details once and so on.
It’s not like you’re limited to a blanket insurance policy either – different cars can have different levels and types of cover depending on your needs. Optional extras like breakdown cover can also be chosen by car.
Individual no-claims bonuses still protected
Some multi car insurance providers protect individual driver’s no claims discounts despite all being on one policy. This can help to avoid everyone losing their bonus after someone else has an accident. Always check the policy wording before taking out insurance and assuming this is the case though.
Cons
More complicated to make policy changes
Having multiple vehicles on the same insurance policy can make it more complex when it comes to making changes with some insurers. Adding or removing cars is likely to change the overall premium quite noticeably because of the discounts and benefits on offer.
Premiums depend on individual drivers
It’s also important to consider the driving records of people on a multi car policy. One driver who is seen as high risk by insurers (for example, young and inexperienced drivers) could push up the overall premium for everyone else. If this is the case, consider if you’ll be better off financially by having them on a separate policy or as a named driver instead.
Should I choose multi car insurance?
The answer comes down to your specific circumstances. If you live in a household with multiple cars and drivers, it may be worthwhile to benefit from cost savings and a more convenient process.
If there are drivers with poor driving histories or lots of previous claims, combining car insurance policies may do more harm than good.