A guide to insuring a second car

What is second car insurance?

Technically, ‘second car’ insurance doesn’t really exist. It’s just another term for multi-car insurance, which lets you insure two or more cars under one policy with the same provider. This sort of cover can be suitable for couples, families and individuals who own multiple vehicles at the same address.

A multi-car policy typically offers the same features as a single car policy, but you may get a discount on the second vehicle. You provide details of each vehicle and its named drivers and choose the type of cover you’d like. You select the level of excess you’re willing to pay in the usual way.

Multi-car insurance involves linking policies, so you could choose a different type of cover and a different level of excess for each vehicle if you wanted to. Most policies will also offer different add-ons to choose from, such as breakdown cover and protection for your no-claims bonus.

Multi-car insurance policies usually cover up to five vehicles registered at the same address. The more cars added to the policy, the bigger the discount is likely to be. But some policies may cover up to seven vehicles of immediate family who don’t live at the same address, so it can be a good idea to shop around.

Can I add a second car to my existing car insurance policy?

A standard car insurance policy only covers one car. You could add another person as a named driver to your existing policy, but you can’t add a second vehicle.

When it comes to insuring a second car, you have two options:

• Take out a separate, standalone policy for the second car

• Buy a single multi-car policy for both cars.

If you’re buying a multi-car policy with a new provider, you may want to wait until your existing policy is up for renewal. That way, you’ll avoid paying any cancellation fees that may apply.

If you want to insure a second car with your current provider, they may upgrade you to a multi-car policy, even during your existing policy term.

How do I insure a second car on a multi-car policy?

Here’s how insuring a second car on a multi-car policy works:

1. Most insurance providers will let you start a multi-car policy with just one car, then add additional cars later on.

2. Once the second car comes up for renewal, you can add it to the multi-car policy.

3. If you’re switching providers, don’t forget to cancel the renewal with your original provider.

4. When you add a second car to the policy, the renewal dates will be aligned. So, you won’t have two dates to remember.

Are separate policies the cheapest way to insure a second car?

In some situations, you may find it’s cheaper to insure your second car with separate cover rather than as part of a multi-car policy. This might be the case if:

• The named driver of the second car is considered high risk – for example, a young driver.

• You own a specialist vehicle, such as a classic car, a sports performance car or a modified car.

• The vehicle you want covered is in a higher car insurance group than your other car.

Many car insurance providers will give you a discount on the second car, even with two separate policies. And if you’re the registered owner of two cars, a few insurance providers offer what’s called a ‘mirrored’ no-claims discount (NCD) which effectively gives you the same NCD for the other car too.

How can I save money on my car insurance?

Insurance providers often offer incentives so you’ll insure your second car with them, but be sure to shop around to get the right deal for you.

Compare the Market doesn’t offer a comparison service for second car insurance or multi-car policies. But if you’re looking for a great deal on separate car insurance policies, start a quote today to see how much you could save.