Multi-car vs. Individual Insurance Policies

With there being so many different variations of car insurance, it’s tricky to pick which will suit you, your vehicle and your lifestyle best. 

Some people prefer to have individual car insurance, whilst others insure multiple cars under one policy. This article is going to explain the benefits of each, so you can come to a decision on which you would want. 

Read on to find out more!

What is the difference between multi-car and individual insurance? 

Multi-car insurance is a unique type of policy that allows you to cover multiple cars under one premium. With most standard insurance types, each individual car has their own policy which provides coverage. With multi-car insurance, the process of coverage is similar, except rather than covering one car under the policy, you can cover multiple. For most insurance companies, this is limited to four vehicles.

What are the benefits of multi-car insurance? 

It’s simple – A lot of people pick this type of insurance because it’s so handy. If you are a family with more than one vehicle, having this type of policy is less hassle and usually means you only have one set of paperwork to sign! 

Additionally, there is only one renewal date. Therefore, you don’t have to remember a handful of dates at different times of the year – making life a lot easier. If you are a busy parent, this will save you having to worry about checking your children are up to date with insurance renewals. 

You can save money – The more people you add, the more money you could save! If your entire household are under the same plan, you could qualify for a cheaper policy. This is because it’s more beneficial for insurers to offer a discount and sign up the whole family, than to have only one policyholder insuring their car with them. As many of us stay with the same insurer for years, these companies are willing to offer discounts to create a new generation of customers – perfect, right? 

Different drivers are okay! – In some cases, each car can have a different named driver, but…. As long as each vehicle driver involved in the plan is registered to that address, you are covered. If you are a family, but live at different at a different address, unfortunately you will not qualify for multi-car insurance. 

What are the benefits of individual insurance? 

Personal needs – Some drivers may require personal additions or requirements with their vehicles, which may not be included in multi-car insurance. For example, if you have a poor driving record and a multi-car insurance will not cover you, having an individual insurance will mean you can get the right policy suited to your needs. This could include having telematics installed in your vehicle, to keep track of your safety and road awareness. 

If you have more than 4 vehicles – In most cases, you won’t qualify for multi-car insurance if you have more than 4 vehicles. So, if you are a big family, it may be easier to be individually covered. This ensures you each have a plan which suits you and you can keep track of your personal policy, without the involvement of other vehicles. 

We hope this article has allowed you to explore the different types of car insurance, and see what each of their benefits are. Every driver is different – so choose one which is a better fit for you and your vehicle!