What is multi-car insurance?

Have more than one car in your household? That means you qualify for a multi-car insurance policy and can potentially save on your premium. Here’s everything you need to know about insuring more than one vehicle under the same policy.

A multi-car insurance policy is when two or more cars at the same address are insured together under the same policy. In some cases, you can even have different levels of cover for each car, such as comprehensive cover for your family car and third-party property cover for your teenager’s beater. 

With a multi-car policy you have less paperwork and often bigger discounts.

The only thing that is required to insure more than one car under the same policy is for the cars to share the same address. This means any of the following situations may qualify you for multi-car insurance:

• You’re an individual that owns more than one vehicle
• You’re a couple living together and you own more than one vehicle
• You’re friends, siblings or relatives who live together and collectively have more than one vehicle
• You’re a parent and child who live together and own separate vehicles. Some policies may even allow the child to live away from home.

A multi-car insurance policy can be a great way to save money and paperwork, but there can also be some drawbacks. Here are some pros and cons to consider before taking the plunge:

There are two main ways multi-car insurance can work. Let’s look at these in more detail:

• Linked policies. Linked multi-car policies let you link together two separate policies under one account. With this set-up, you can have different levels of cover, and even different renewal dates, for each car covered - while retaining any bundling discounts.
• Multiple cars on the same policy. This is the most streamlined set-up, with each car having the same level of cover, same add-ons and benefits, and same renewal dates. 

Each of these is a viable option that offers flexibility and potential savings.

There is no real difference between purchasing a multi-car policy over regular comprehensive or third party property insurance, other than the obvious differences, like any bundled discounts. Each car will be covered as normal.

Need some help working out if a mult-icar policy is right for you? Read some of Mozo’s car insurance customer reviews for an unbiased view on what works for people just like yourself.

If you’ve had your single car policy for a while, it’s still possible to add more vehicles to it - as long as your provider offers multi-car policies in the first place, and as long as you meet the qualifying criteria mentioned above. Just give your provider a ring and ask to add the new car to your existing policy.

Sort of. If you make a claim on one car, it might bump up the overall premium but in a way that’s distributed across all the cars on the policy. This means that while the total cost of the policy goes up, each car's share of the premium will only increase by a proportionate amount.

If one person is paying for everything, this might not be a big deal. However, if you’re sharing the cost with someone else, such as friends in a shared house, it could get tricky determining how to split any premium hikes. 

Multi-car insurance can be a great option, but it’s not for everyone. Here are a few situations where it might not be the best choice:

• Single-car households. Obviously, if you only have one car, multi-car insurance makes zero sense.
• Different addresses. If your cars are registered at different addresses, you most likely won’t be eligible for a multi-car policy.
• Shared households with friends. If you’re friends living in a shared house, the differences in driving records, cars driven, insurance needs, and financial arrangements can make a multi-car policy more trouble than it’s worth. 

In most cases, multi-car policies work best when a single individual or family unit is managing the policy for all cars.

Multi-car insurance can simplify managing multiple vehicles and save you money, but it's not always the perfect fit for every situation. At the end of the day, all you can do is weigh your options, consider your specific needs, and choose the approach that works best for you.

Need a helping hand? Check out Mozo’s car insurance comparison tool to get you started.