Multi-car insurance policies could be a sensible way to group insurance payments of a household under one encompassing bill and cover. In a house where there is one or more vehicle, each motorist will be required to insure each individual car. Taking out separate insurance policies for each vehicle and member of the family in the household could, however, not only be time-consuming but also cost you more. Insurance costs could quickly rack up by purchasing separate policies for each, which is why multi-car cover could be more suitable for you.
Matt Oliver from GoCompare Car Insurance, explained to Express.co.uk how multi-car cover could save drivers cash.
He said: “If you’re lucky enough to own two or more cars, or if family members have separate cars, you need to insure all of them.
“But taking out separate policies for each vehicle could become expensive very quickly, so many people opt to take out multi-car insurance, which lets you bundle your policies together with a single insurer.”
Drivers could get a discount for bundling together the different premium costs into one, however, this is not a guarantee, explains Matt.
“While this may seem like the more convenient, and in some cases, a cheaper option, there is no guarantee it will work out as the cheapest deal for your circumstances,” he added.
“For multi-vehicle households, it’s a convenient way to manage the insurance. However, it’s worth pointing out that there’s no guarantee it’ll be the cheapest option for your circumstances.
“Whether you save or not depends on the large number of factors used to calculate an insurance quote, so the only real way to see if you can save is to obtain individual quotes – then compare the total price to a quote for a multi-car policy.
“If a multi-car policy is the cheapest and best way for you to arrange your cover in one year, remember that this won’t necessarily be the case when it comes to renewal.
“Providers are likely to be keen to push the benefits of the ease and convenience of renewing all your motor insurance in one go, but auto-renewal without shopping around is one of the most costly mistakes made by consumers when sorting out their cover.
There is a number of other considerations motorists need to be aware of before purchasing.
Read the terms and conditions carefully to see if your no claims bonus can be transferred to your multi-car policy
Renewal may need to be at the same time for all policyholders. So, be aware that if you switch to a multi-car policy part-way through an existing policy, you’ll miss out on your no claims bonus for that year, and may not be able to get a refund on unused premiums
There may be problems transferring a no claims bonus accrued on a multi-car policy if you choose to change provider – or switch to a single-vehicle policy – in the future.