Saturday, December 25, 2010

How does multi-car insurance work?

iIf you live in a two (or more) vehicle household, you could save money each year with multi-car insurance - a single policy that covers more than one vehicle.

How does multi-car insurance work?

Multi-car cover allows you to use a single policy to cover multiple vehicles. Some providers will cover up to five vehicles under a single multi-car policy provided they are all registered to the same address - which means that an entire family could be covered under the same policy, provided they all live at the same address.

A multi-car policy is a lot like buying your insurance in bulk - because multiple people are protected by the same policy, your insurer can reward you with lower prices for that cover in the same way that energy companies will often offer you discounts on dual fuel energy bills. You are making their administration process simpler and also bringing more business to the company.

However, buying a multi-car policy does not always work out cheaper, and as such it's always worth exploring both options before you make a decision.

What should you look for in a multi-car insurance policy?

There are a few considerations you should make when it comes to deciding if a multi-car insurance quote is right for you:

Who is covered for what - While multi-car insurance covers multiple vehicles, not every person on the policy is covered to drive every vehicle. Make sure all drivers are covered for vehicles they need to be when setting up the policy, as changing this can affect the cost.

No claims discount - As a rule, if one of the drivers on your policy has a claim made against them, it should only affect the involved drivers no-claims history - but make sure this is the case before applying.

Changing vehicles - Check the details of the policy to make sure that should you change your vehicle during the life of the policy, you are able to change it with your insurer.

Renewal dates - Some insurers will link all the renewal dates together, which can prove to be particularly expensive if paying annually. If you would prefer to keep the payments smaller, make sure that you are able to pay monthly - but be aware that you will pay more overall if you choose this option.

Make sure that your multi-car insurance is competitively price compared to insuring the vehicles separately, and also be certain to ask the provider about extra discounts - for example parking in a garage at night, or fitting extra security to your vehicles.

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