Multi-car insurance

Many car-insurance providers offer a discount if you insure more than one car with them.

But is it always cheaper to insure two or more cars on the same policy? Here’s our guide on multi-car insurance to help you decide if it’s right for you.

Many car-insurance providers offer a discount if you insure more than one car with them.

But is it always cheaper to insure two or more cars on the same policy? Here’s our guide on multi-car insurance to help you decide if it’s right for you.

Daniel Hutson
From the Motor team
minute read
Do you know someone who could benefit from this article?
Posted 22 APRIL 2021

What is multi-car insurance?

Multi-car insurance lets you insure two or more cars under a single-car insurance policy.

According to a Department for Transport survey, 35% of households in England owned two or more cars in 2019. Covering them on the same multi-car insurance policy could not only mean less hassle and paperwork but, in most cases, could mean getting a discount.

How does multi-car insurance work?

The number of cars a multi-car insurance policy will cover depends on the provider you choose – it typically ranges from two to five or six cars, which (in most cases) have to be registered at the same address.

Multi-car insurance policies offer the same features and levels of cover as a standard policy for one car, with optional add-ons – like breakdown cover, for example – also typically available. The only real difference is that most insurance providers offer a discount on each car added. You’ll also usually have just one set of paperwork to manage and one renewal date. Usually the renewal date will be a year from when the last car has been added to the policy.

Even though all the cars are insured on the one policy, they can each have their own level of cover. So, for example, one might have fully comprehensive cover, while another might have third party, fire and theft. This also means you can choose different levels of excess – the amount you pay towards a claim – and keep your no-claims discounts separate. So, if your partner damages their car in an accident, it shouldn’t affect your no-claims bonus.

Who is a multi-car insurance policy for?

A multi-car insurance policy might be a good option for:

  • Families who have more than one car – if you’ve got older children who live at home but drive their own car
  • Couples who each have their own car
  • Friends sharing a house – you don’t have to be related to take out a multi-car insurance policy, so long as the cars are registered at the same address
  • A person with more than one car

Some multi-car insurance policies cover drivers living at different addresses, so you might be able to cover older kids at university, for example. But not all do, so you’ll need to check before adding them.

Can multi-car insurance save me money?

Many insurance providers offer a discount on each car added to the policy, so it might save you money insuring them in this way.

But a discount doesn’t automatically mean that your car insurance will work out cheaper. There’s a whole lot of factors that are used to calculate your car insurance premium including age, driving history and the type of car you have. When you take out a multi-car insurance policy, these factors will be considered for each car and each driver.

For example:

  • You and your partner are over 40, and both have a clean driving record. You then add your 18-year old daughter who has just passed her test. As a younger, inexperienced driver, she’ll be considered a high-risk for insurance purposes. So, even with a discount, your premium could end up costing more than separate policies for you and your partner.
  • If you have a small run-around in a lower insurance group, but your partner has a more expensive sports car in a higher group, it could work out cheaper to insure them separately.

On the other hand, if you and your family are experienced drivers with clean licences and cars in lower insurance groups, a multi-car policy with a decent discount may work out cheaper.

The best way to see if you can save is to get a separate quote for each car, then compare these to a multi-car insurance quote to see which is cheaper.  

If you decide on separate insurance, adding yourself as a named driver to a younger family member’s policy might help lower the cost of their premium. Just make sure they’re named as the main driver, otherwise you could be guilty of car insurance fronting, which is illegal. This is when someone more experienced claims to be the main driver to get cheaper insurance – when it’s actually the less experienced driver who uses the car the most.

Another option for new drivers is a black box insurance policy, known as telematics. A device is fitted to the car and records the driver’s driving habits. Good driving could help them get a discount on their premium. You could then add them to a multi-car policy once they’ve started building up a no-claims discount.

Did you know?

Individual car insurance premiums have fallen by £103** since the start of the coronavirus pandemic – the lowest average price in nine years.

**Compare the Market Premium Drivers Report, March 2021

Can I add named drivers to a multi-car insurance policy?

Yes, you can. But they can only drive the cars for which they’ve been added as a named driver. Check with your insurance provider before adding someone, in case it changes your cover or the cost of your premium.

Will my no-claims bonus be affected?

If another car on your policy is involved in an accident, only the person who claims should be affected. But if another named driver on your car has an accident and makes a claim, then yes, it could impact your no-claims discount.

Can I add my van to a multi-car policy?

You’ll need to check with your insurance provider, but in most cases, you can only cover cars for personal use. If you use your van for work, you’ll need separate business van insurance.

Is multi-car insurance worth it?

Whether you can benefit from a multi-car insurance policy will depend on a number of things.

Think about:

  • The makes of the cars you want on the policy – the higher the insurance group, the more expensive your overall premium is likely to be.
  • The age and driving experience of the drivers you want to add – have they just passed their test? Do they have driving convictions?

Ultimately, you’ll want to work out if a possible discount offers better value than separate policies.

Can I compare multi-car insurance policies through Compare the Market?

Compare the Market doesn’t offer a comparison service for multi-car insurance. But, we’re a great place to start if you want to compare separate car insurance policies.

Our price-comparison tool is quick and easy to use – and it only takes a few minutes to get a range of quotes to compare.

Once you have an idea of how much separate policies will cost, you can then look up insurance providers who offer multi-car policies.

Remember, it’s not all about price. The most important thing is to choose a policy that’s right for your needs.

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