Multi-car insurance covers two or more vehicles on a single policy, usually with a discount compared to separate policies.
How Multi-Car Insurance Works
| Feature | Multi-Car Policy | Separate Policies |
|---|
| Vehicles | 2-10 on one policy | Each vehicle separate |
| Discount | 10-20% off each vehicle | No discount |
| Renewal | Single renewal date | Different dates |
| Management | One phone number, one login | Multiple accounts |
| No-claims bonus | Each vehicle builds its own | Each vehicle separate |
Typical Savings
| Number of Cars | Separate Policies Cost | Multi-Car Cost | Saving |
|---|
| 2 | £800 | £680 | £120 (15%) |
| 3 | £1,200 | £960 | £240 (20%) |
| 4 | £1,600 | £1,280 | £320 (20%) |
Who Offers Multi-Car Insurance
| Insurer | Discount | Notes |
|---|
| Admiral | Up to 25% | Market leader |
| Direct Line | Up to 12% | Named drivers have own NCB |
| Aviva | Up to 15% | Multi-car + home combined |
| LV= | Up to 15% | Flexible on drivers |
| AXA | Up to 10% | Online only |
When Multi-Car Saves Money
| Situation | Saves? |
|---|
| 2+ vehicles in same household | Yes |
| Mix of new and experienced drivers | Usually |
| All drivers have good records | Yes |
| One driver has poor record | May be worse (bad driver affects all) |
| Vehicles very different (car + motorbike) | May not be offered |
When Separate Policies Are Better
| Situation | Separate Better |
|---|
| One driver has a bad record | Bad driver doesn’t affect others |
| Different renewal dates preferred | Flexibility |
| Specialist car (classic, import) | Multi-car may not cover |
| Specific insurer needed for certain car | Choose per vehicle |
The Bad Driver Problem
| Scenario | Multi-Car | Separate |
|---|
| Two drivers, one with 3 years NCB, one with 0 | Discount applies to both | Lower for the good driver |
| One driver has 6 points | All vehicles affected | Other vehicle unaffected |
| One driver makes a claim | All premiums may rise | Only that policy rises |
No-Claims Bonus on Multi-Car
| Aspect | How It Works |
|---|
| NCB earned | Each vehicle builds separate NCB |
| NCB on claim | Only the vehicle that claimed is affected |
| NCB protection | Protects each vehicle’s NCB separately |
| Splitting policies | NCB earned can be used on new separate policy |
Bottom Line
Multi-car insurance saves 10-20% by covering 2+ vehicles on one policy. Best for households with multiple good drivers. If one driver has a bad record, separate policies may be cheaper. Each vehicle builds its own NCB. Admiral is the largest multi-car provider. Compare multi-car against separate policies to be sure you’re getting the best deal.
This content is for educational purposes only. Not financial advice. Do your own research before investing.