Despite the offer of low cost car insurance by getting a discount for buying in bulk, these policies are not necessarily the cheapest and the best.
The idea is up to five cars registered at the same address, plus the drivers who live there, are covered by one policy.
But consumer champions and independent financial firms like Which? And Defaqto claim some drivers could get cheaper car cover by taking out a policy in their own name.
If you are buying a multi-car insurance policy, here are some important points to bear in mind:
Who is covered – Some policies deal with families, while others will insure everyone living at an address. The best way to arrange a policy is so that every driver is covered for every car at the home.
No claims penalties – If one driver makes a claim, this should not affect the no claims discount of any other driver
Changing cover – Set up the right cover from the start as making changes will cost more money
Switching cars – Cars should be added or removed from cover cheaply if they are changed during the life of the policy
Renewal dates – Some polices have a single renewal date and others are staggered. A single renewal date is often cheaper
Never automatically renew a multi-car insurance policy without making two checks on comparison sites or with a broker –
- Check comparable multi-car policies as several insurers have entered the market over recent months
- Check the cost of individual policies for each driver – it’s possible one or more drivers might find a cheaper deal with a different company.
- Check if the same company offers a cheaper deal to individual drivers as well – don’t assume a multiple car policy is the firm’s best priced cover
Don’t forget the insurance premium depends on age, gender, driving experience and history, no claims discount, car model and engine size etc.