If you have more than one vehicle in your household, selecting a multi-car insurance policy might be more cost-effective and simpler to manage than insuring each vehicle individually.

Overall, multi-car insurance works just like standard car insurance. Policyholders can choose their level of cover as normal, from Third-Party Fire & Theft to Fully Comprehensive cover. This also means that the cover levels don’t have to be the same for each individual vehicle, and neither do the excesses.

To be eligible for multi-car insurance, the policyholders must live at the same address, but don’t have to be related.

Additionally, each driver has their own No Claims Discount. This means that individual drivers can continue to build their own discount, as long as no claims are made. Each individual can then take their discount with them if they switch insurer or vehicle. Those with a sufficient No Claims Discount are likely to benefit from reduced annual premiums.

The most common benefit to having a multi-car insurance policy is the saving in premium costs. It is also likely to be simpler to manage than having multiple individual car insurance policies.

As a young driver, it may be beneficial to be part of a multi-car insurance policy with at least one older, more experienced driver. This may balance out the overall premium for the policyholders.

We always recommend using a local broker to find a policy which is suited to your individual needs. Visit our blogs ‘How do I choose the right insurance company for me?’ and ‘Which car insurance should I buy?’ for further information.