One increasingly popular option is to take out a multi-car policy which ties two or more vehicles with one insurance company (this is what I do). To try to give you a few pointers I have had someone write a brief article looking at multi-car insurance, its benefits and whether or not there are any catches you should watch out for.

 

 Multi-car insurance is designed for people with two or more vehicles in the same household such as married couples or even single drivers who happen to own more than one vehicle (perhaps the second vehicle is a classic car or kit car that is only used on special occasions). With some insurers you may be able to insure as many as five vehicles under the same policy as long as all of the vehicles are registered to the same address. This means you could potentially cover all the cars in your household – including those that are driven by your spouse or children.

 

By bringing more business to the insurance company and simplifying its billing methods, you will usually earn a discount which could be as high as 23 per cent dependent on the provider.

 

In theory, life also becomes simpler for the policyholder. Instead of dealing with multiple insurance premiums each month they can simply make one payment and have peace of mind that all of the cars are covered. It also means there is only one renewal date to remember so you can save time on shopping for car insurance throughout the year and there is less risk of being under insured.

 

It’s easy to be taken in by the size of a discount on a multi-car insurance policy, but you should still factor in the level of cover it offers. Consider whether it meets all of your needs in terms of providing the protection you expect from a car insurance policy – for example, does it include windscreen cover, a courtesy car if yours is being repaired, personal accident cover, and accidental damage cover? Do you have to pay extra for policy options such as legal expenses and breakdown cover?

 

While these are general considerations that should be factored in regardless of whether you are taking out a multi-car insurance policy or not, there are also a number of considerations that take on added importance if you have a multi-car deal including:

 

- Consider the excess levels available: The excess is your contribution towards a claim. What is the insurance company’s compulsory excess and do excess levels differ depending on the car you are insuring?

 

- No-claims bonus: Does the insurance company offer a no-claims bonus and what is the extent of this bonus? Some insurers will reduce premiums by as much as 60 per cent if you complete four or more years without making a claim. With a multi-car policy you may have several years’ no-claims on one vehicle that is lost because another driver on the policy has an accident. In most cases, if a claim is made, only the individual involved will see their no-claims bonus affected but you should still be vigilant and ensure this is the case.

 

- Renewal dates: While only dealing with one renewal date a year is easier to remember, bear in mind that if the premiums for each vehicle are due to be paid at the same time it could be expensive. As such you may wish to ensure that your provider offers a monthly payment option.

 

- Which cars can you drive: Check to see who has access to each vehicle under the terms of the policy – generally, you will only be able to drive cars for which you are registered as a named driver on the policy.

 While discounts are always worth considering, some drivers wrongly assume that these deals are automatically the cheapest. In fact you may be able to save money by buying policies individually so you should still shop around and compare policies from as many car insurance companies as possible to ensure you’re receiving value for money. The leading comparison websites can compare deals from more than 100 insurers and are a useful tool to find an affordable deal.

 

Compare the prices and cover options on individual deals to multi-car policies and then determine the best policy for your needs.

 

Don’t forget that there may be additional ways to save money too – here are some tips:

 

- Annual payments: By paying for car insurance annually you may be able to avoid monthly interest charges.

 

- Buy online: Most car insurance companies now offer their cheapest deals on the internet due to the savings they make on overheads.

 

- Increase security: Consult your insurer about which security equipment to add to your car – alarms, immobilisers and tracking devices usually earn discounts.

 

- Increase your voluntary excess: Consider raising your voluntary excess to lower premiums, although it should be kept at a level you can comfortably afford.

 

- Park safely: Keep your car in a garage overnight and you may earn a discount.