Multi Car Insurance Policies
Multi-car insurance policies can be an effective way for households to reduce the cumulative auto insurance bills whilst adhering to the UK law that mandates at least minimal auto coverage to drive legally. Good coverage can be expensive if the driver or the associated vehicle is very high on the category risk scale, but saving cover cost is possible for appropriate coverage.
An initial method of savings on multi-car insurance policies is to verify that each driver and each vehicle has the appropriate level of coverage. The add-on feature of personal accident protection is a very nice benefit, but don’t add the feature to your bill if the policy already allows it. Some comprehensive covers provide hired car service. In those cases, the add-on causes overpayment and can and should be eliminated for that person or auto mobile. If a car is very old with little value, no insurance company will pay thousands of pounds to replace it, so is comprehensive cover necessary? If it is, keep the cover. If third-party fire and theft would suffice, reduce the cover and reduce the price. Ensure your cover levels are appropriate for individual schemes.
The advantages and conveniences to this type of combined policy may be enough seriously consider joining cars onto the same policy. Reduced paperwork and one premium instead of multiple ones are only two conveniences that start the list. By combining cover onto one policy, risks and costs are shared, which often reduces the household expenditure, saving more money for other expenses. Insurance companies like combined covers, for they generally pick up one or two more customers, for few households keep the same policy as time passes; combined coverage keeps the business under one roof.
For all the conveniences multi-car policies grant, sometimes, complications make the choice a difficult one. Coverage per vehicle often isn’t the same, which can cause confusion upon configuration and renewal. One car owner may want to upgrade coverage, which would put an additional burden on the other drivers. One driver can have a significantly higher risk profile – young drivers and convicted drivers, for instance – or high-risk vehicles can drastically influence multi-car policy premiums upward. Occasionally, it’s cheaper for the household to isolate the high-risk elements onto a separate policy. Sometimes, the household cost of auto insurance actually falls with two or more vehicle covers are combined and another isn’t.
For example, newly licensed drivers always experience higher premiums for any level of cover. Adding that driver to an established policy may escalate car cover costs beyond easy affordability. However, if that new driver has an older car, third-party cover on an independent policy will usually cost less than that driver and vehicle on a combined comprehensive policy. In determining which configuration brings the most savings, comparison sites like this with included car insurance calculators are convenient tools.
Getting the Best Coverage
One cost-related factor to consider in pursuing multi-car insurance policies is appropriate cover, as introduced above. Every car and every driver on the policy should ensure there is adequate cover, for under-insured status can actually cost considerably more in the long run than a few pounds per month on an annual policy. Speciality covers for imports of any age is often required. Sports cars or kit cars need speciality covers, and vintage cars always need special protection. A family van and a small commuter model don’t. At face value, four cars on the same policy would seem to make sense, but the coverage needed is so different that joining these sample vehicles would require a multi-car speciality cover. Although speciality covers for those unique auto mobiles costs less than standard cover, half the vehicles on the list would cost more than necessary with that single policy. If there is a speciality company that covers those high-risk cars together, multiple multi-car insurance policies makes sense.
If there is more than one car in a household, which means all registered to the same address, determine cover levels needed, compatible risk factor and cost differentials. Compare quotes on each vehicle and registered drivers to determine the high costs and the low costs for appropriate covers. Then start combining cars to see if the total cost for an all-car policy is worthwhile, or you might opt for a few multi-car insurance policies if those total costs mean saving cover expenses.