While plenty of car insurance providers offer a discount if you insure more than one car with them, how can you be sure it’s the cheaper option? Here’s our insider’s info to help you work out if it’s the right deal for you.
And while Compare the Market doesn’t yet offer a comparison service for multi-car insurance, we’re a great place to compare separate car insurance policies and check the cash savings on your choices
What is multi-car insurance?
Multi-car insurance, also known as second car insurance, lets you insure two or more cars under a single car insurance policy.
Considering 34% of households owned two or more cars in 2022, according to a Department for Transport survey, this could save hassle, paperwork and offer up a useful 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 usually 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 similar optional add-ons – like breakdown cover, for example. The only real difference is that most insurance providers offer a discount on each car added.
You’ll usually have just the one set of paperwork to manage and one renewal date - which will probably be a year after the last car was added to the policy.
But the really useful bit is that 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.
That 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, it shouldn’t affect your no-claims bonus. Which might avoid one awkward conversation, at least…
Who is a multi-car insurance policy for?
A multi-car insurance policy could be worth a closer look if you’re:
A family with more than one car – if you have older children who live at home but drive their own car, for example
A couple that each has their own car could benefit from second car insurance
A group of individuals sharing a house
Someone 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 your policy’s small print before adding them.
Top tip
Most of us assume multi-car policies are only for family members. But that’s not true. You don’t have to be related to take out a multi-car insurance policy; the cars typically just have to be registered at the same address. So, for example, a group of friends living together could be quids in by putting all their vehicles on one policy.
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. Like any insurance policy, a whole heap of factors are used to calculate your car insurance premium, including age, driving history and the type of car you have.
Remember, too, that these factors will be considered for each car and each driver. That might sound complicated, so here are some examples:
Let’s say 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 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.
Alternatively, you might 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 the cars 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.
To see what works best for you, get a separate quote for each car, then compare these to a multi-car insurance quote.
A guide to car insurance
Do modifications affect my car insurance?
FAQs
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 I be able to drive all the cars in the policy?
No, you’ll still only be able to drive the car(s) that you’re insured to drive.
To be able to drive another car, you’d need to be added as a named driver. This is true whether the car is part of your multi-car policy or not.
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.
When you take out a multi-car policy, your renewal dates are combined, which, unfortunately, means anybody on an existing separate policy may miss out on the no claims discount for that year. However, you might not have to all join the multi-car insurance policy at the same time. Some insurance providers will let you add extra cars as they reach renewal. This could also help you to avoid paying any cancellation fees for cancelling your existing policy to join the multi-car one.
Can I add vans or motorbikes to a multicar policy?
No, you won’t be able to add vans or motorbikes to a multi-car insurance policy.
However, there are multi-bike and multi-van insurance policies available, allowing you to group those vehicles together, just as you would a multi-car policy.
What happens at renewals?
Some multi-car insurance policies will sync your renewal dates when you take out the policy, or when a new driver is added. The renewal date is usually set to the date the first car(s) took out cover. If you’re unsure, check the policy wording or speak to your provider.
How many years am I tied into the policy?
Just like a regular car insurance policy, a multi-car insurance policy usually lasts 12 months.
If you’re adding cars to the policy at a later date, you may need to sync up the renewal dates.
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.
Julie is passionate about delivering a great customer experience and rewarding people for saving on their insurance through our loyalty and rewards programme. She’s spoken to the media, including outlets like Sky News, about car and home insurance, as well as our Meerkat rewards scheme.
Our content is written by a Compare the Market expert, backed by data and enhanced by AI. Find out how we ensure accuracy and quality in our Editorial Guidelines.
