How does multicar insurance work?

Multicar insurance allows you to add multiple vehicles to one insurance policy. This could be financially beneficial if you have more than one car registered to the same household, as insurance companies sometimes offer discounts for multiple cars. Just make sure you shop around to find the best deal.

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Three young friends talking in a car

What am I covered for with a multicar insurance policy? 

Multicar insurance cover simply insures multiple cars under the same policy. This means that you will get the same level of cover on all vehicles.The different types of cover available for this type of insurance are: 

  • third party – the cheapest level, you’re only covered against damages caused to other people and their cars or other property 
  • third party, fire and theft – as well as third-party insurance, you also benefit from cover if your car is broken into, stolen or set on fire 
  • comprehensive – the most expensive level, you get cover for pretty much most things, like all of the above plus damage and medical expenses, but this can differ between insurers 

Remember, you can opt for higher levels of cover for certain cars whilst still benefiting from a multi car insurance discount.

Just like with other car insurance policies, you’re usually covered for one year. When that year is over, your policy will either be renewed, or you can shop around for a new one. Since it is a legal requirement for drivers in the UK to have car insurance, most policies tend to auto-renew unless you specifically tell your provider that you want to switch. Remember, that just because your policy is auto-renewing, it doesn’t mean that you’ll be paying exactly the same amount and be covered for the same stuff. Even if you are, it may no longer be the best deal on the market – so you should shop around.  

Am I eligible for multicar insurance?

If you live with one or more people, (whether that be friends or family), you're probably eligible for multicar insurance. It can be an ideal option for households that have more than one car, or someone who drives more than one car on a regular basis.

There are some eligibility factors that you need to consider, though. For instance, there is usually a maximum of six cars that can be on a single policy. However, this does differ from one insurer to the next – you may be able to find a specialist one if you want to insure more cars. In many cases, you also need to be living at the same address. Although, some providers allow you to add university students who have a separate term-time address, as long as their home address is the same as the one on the policy document. 

What is the advantage of multicar insurance? 

There are a number of reasons why you may be considering a multicar policy. Here are some of the advantages, as well as what you need to watch out for: 

More affordable 

Multicar insurance can be more affordable than getting several single car policies. This is because there are various discounts available for adding more cars to your policy. You’ll also probably find it cheaper than getting a single car policy if you’re teaming up with drivers who have been driving for a while, because age and experience play a large factor in insurance cost. 

Note: Not all multicar policies will work out cheaper, so it’s always advised that you shop around first to find the best deal for you. For instance, adding a named driver to your car could be a better option if the other person doesn’t plan to drive very much.  

Easier to manage 

Since every car keeps their own renewal date, it’s very simple to manage. If you already have cover in place, you can simply wait for that to expire and then add your car to the multicar policy.  

A group of people looking after one policy and payment might also be easier than everyone managing their own policies. Remember the saying ‘too many cooks spoil the broth?’ Well, this can also apply to car insurance. You might want to nominate one trusted person to be in charge of the policy.  

The whole household can be covered 

Families and couples often find it easier to get a multicar policy because it’s less paperwork and more convenient – the whole household can be covered.  

It’s flexible 

It isn’t just married couples who can benefit from a multicar insurance policy. It can be used for students, families or even friends sharing a house. If you know that you’re going to be living with one or more other drivers for at least a year, you might want to consider it. 

Is multicar insurance cheaper? 

Many providers offer discounts for adding multiple cars to one policy. Due to this, multicar insurance is usually cheaper – but not always. It is important to always look at your options before taking out a new policy or renewing. That is the only way that you’ll make sure you get the best deal available to you. 

For instance, if you drive a car that’s in a lower insurance group (smaller and slower), and you’re added to a policy where the other cars in a higher insurance group (bigger and faster), it could be cheaper for you to get a single car policy. Likewise, an older and more experienced driver might find that they’re paying more if they take out a policy with somebody who is younger and inexperienced.  

Does multicar insurance affect no claims? 

If you need to make a claim, then your no-claims bonus will likely be affected. But each individual under the policy still gets their own no-claims bonus. So, if someone else under the policy makes a claim, it won’t impact yours. 

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