How Multiple Car Insurance Works
Until very recently, households that had multiple cars parked in their drive ways, and garages had to organize separate policies for each of those cars because of the way insurers worked when estimating insurance premiums. As the number of households owning multiple cars has grown, so has the necessity for multiple car insurance.
Multiple car insurance allows up to five cars (and, in some cases, six cars) to be insured on the same policy, provided that they are registered and situated at the same address. Only cars that are for exclusive or private use can be insured, and commercial vehicles are not usually viable.
The great thing about multiple car insurance is that the more cars you include in your policy, the greater the discount. Also, occasionally, if two cars are being insured, you can transfer your No Claims Discount onto the other car that is covered by the same multiple car insurance policies. There is the same level of cover for multiple car insurance as there is for individual car insurance.
You can still opt for Third Party, Third Party Fire & Theft and Fully Comprehensive cover, but the Fully Comprehensive policies make more sense with these types of policies as they can save you more money. Either way, the insurance companies are happy with multiple car insurance policies because they are receiving business for more than one car, under one policy heading. In some ways, the way multiple car insurance benefits you, it is also benefiting the insurer by simplifying administrative factors.
Your insurance premium, unfortunately, is still subject to the usual pre-meditated car insurance factors such as make and engine size, but it does have some differences to multiple individual policies. No matter, how many cars are insured with your multiple car policies; you will have a single policy, a single renewal date and a single premium to pay, meaning there will be one total as opposed to many different figures.
There is also the question of discounts. For policies that cover two cars, the discount is likely to be in the range of around 10% but for up to five cars, that discount can increase to 30%. With multiple cars being insured, that can amount to a lot of savings. Another benefit is that the excesses and cover levels for each individual vehicle named in the policy will be different and act as if they were insured exclusively. It is worth noting, however, that a multiple car insurance policy does not necessarily mean you get to drive every vehicle in the policy, only vehicles for which you are a named driver.
Due to the higher amounts of expenditure that multiple car insurance policies incur, many people opt for monthly payments of their car insurance premiums, but generally monthly payments end up costing the individual more, plus there are interest charges and other fees, so it is worth checking carefully when choosing your payment option. It should not be assumed that multiple car insurance is an assuredly cheaper option. While it may be cheaper to opt for multiple car policies over two individual policies with the same company, it may work out cheaper having two individual policies for two cars with two different car insurance companies.
Multiple car insurance policies are probably the most beneficial policies for families with grown-up children living at home with their own cars. It also has the added benefits for parents of having them in control of every policy and car and, additionally, means that the kids have to fork out the cash to you, the parents, instead of those insurance companies!