It's not uncommon to see two, or even several cars parked outside a house these days due to our reliance on vehicles for everyday life. Unfortunately, the cost of car insurance can stack-up for a family, but insuring 'in bulk' on a multi-car policy can help you to keep your costs down
How much can I save?
There's no real firm answer to this due to insurance varying so much depending on circumstance. As a general rule of thumb, you could expect the saving to be around 5% for one additional car, with that rising up to around 20% if you have more than two registered, depending on provider of course.
You should research the cost of a single car policy (for each car), from several providers before looking into a multi-car policy so you can calculate how much you'd be saving. It's worth mentioning here, that the discount you'll be offered will be based on the price you would pay if you bought all policies separately from the same insurer, so in some circumstances you may actually get a better deal buying separate policies from different brokers. This is particularly true when adding a 'high risk' driver, such as a young/new, or recently penalised motorist. It may be that you are a four car household, but only three drivers are worth insuring on a single policy, with the fourth getting a better deal somewhere else. Always do your homework if this is a cost saving exercise.
How it works
Providing you live at the same address, insurers that offer multi-car policies will allow you to register up to 5 cars on one single policy – you don't have to be related, making this a good option for students and other such households. As with any car insurance you can get 'third party', 'third party, fire & theft', or 'fully comprehensive' cover.
You can save you the hassle of renewing several separate policies each year, and all of the paperwork that goes with it. If you're considering a multi-car policy, it's likely that all of the cars have different renewal dates. In such instances, the insurers will simply add each car to the policy as their renewal date arises – obviously the price with the insurer will be agreed prior to this date, and will be honoured, providing the details such as vehicle type etc. don't change.
Multi-car policies are a good option for what we might deem the 'average' motorist. Average meaning that you don't have any extenuating circumstances which will throw you into an expensive insurance bracket. As previously mentioned young/new/penalised drivers are most susceptible, alongside any driver's of 'special' cars such as classic cars, sports cars, and kit cars to name a few. All such groups would best be served taking out a separate insurance policy specially tailored to their needs. (See our 'guide to specialist car insurance' for more details)
Be smart and scrutinise the terms and conditions. It's not unheard of for multi-car policies to sometimes consider the no-claims bonus as belonging to the policy as a group rather than individual drivers. In practice this means that mum might lose her no-claims bonus if her son, or any other member of the policy has an accident.
Finally, make sure that the policy provider is flexible enough to allow any given user to change cars during their policy, as it's unlikely that you'd all change vehicle at the same time, and that driver would effectively need to pay double insurance.© Smileseafox | Dreamstime.com