Many families will have more than one vehicle to insure.
This is where multi-car policies can prove useful. You will receive the same benefits as with a standard policy for car insurance, and also a discount for every car that is then added to that policy. It is also possible to have multi-car breakdown that will protect all the cars and all the drivers.
If you are looking to insure right now, then one sure insurance can discuss your options. Meanwhile, this article will look at the pros and cons of multi-car policies.
Cost-effective.
You can usually save money with a multi-car policy by not having to pay separate premiums for different vehicles. In most cases, it will work out cheaper this way. The only thing you might need to bear in mind is if you insure your vehicle with different companies, a more favorable premium might be offered on certain vehicles.
The results pooled together might lead you to the conclusion that it is better to spread your insurance policies around. It is a case of shopping around to find out if this is the case.
Discounts available on multi-car insurance policies vary from between 10 and 25%, depending on the insurer. It is worth seeing if you can save money on your car insurance this way.
Easier to manage.
It is easier to manage your vehicles when they are all on one policy. You can then generally have one renewal date to think of as renewal dates are all made the same by the one policy provider.
In terms of the paperwork involved, there are less forms to have to fill in and sign, or at least read, if electronic.
Number of vehicles possible on multi-car policy.
Typically, you can insure up to six vehicles that are registered at the same address on one policy. So, if you own a fleet of cars or have a large family, then it is possible to keep everything together with the one insurer. The key is that the vehicles all have to be registered at the same address.
Insurers will offer multi-car policy discounts because it reduces the risk for them. They know this because you have all the cars insured with them. After all, nobody can drive more than one car or vehicle at a time, so there is no risk to the cars that are not being driven at that time.
One large premium to pay.
There had to be a major disadvantage to multi-car insurance policies, didn’t there? Well, they do, of course, mean that you will end up having to pay a larger insurance bill all at once. You can, of course, pay it using credit facilities, but then you will pay extra for these. So, you will need to bear in mind cash flow and credit charges and factor these in when considering whether a multi-car policy will save you money. I suppose it depends on how many vehicles you have on the policy whether it becomes a difficult amount to find all at once. Avoiding credit is the cheapest way of paying for anything.
High-risk drivers.
Another disadvantage of multi-car policies is that high-risk drivers, such as teens, can end up putting the price of the insurance up for everyone. That is all the family members on the policy who are older and more careful, perhaps. There is no doubt that young drivers remain a higher risk for insurers, and they continue to reflect this in their premiums and compulsory excesses.
So, on the surface, there is money to be saved from taking out a multi-car insurance policy because of the discounts possible for each vehicle added.
However, this does not allow for the fact that certain makes and models may be considered more favorably by certain insurers. Also, there is the potential inconvenience of trying to find the money to pay one larger insurance premium all at once where renewal dates are combined into one. Then, that is not to mention the high-risk drivers who might potentially claim more and put the cost of this multi-car policy up for everyone.
We should, then, consider multi-car policies while knowing the disadvantages of them too. Your insurer or broker will be able to help you decide by obtaining different quotations for you and making comparisons.
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