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Multi-car insurance UK 2024 guide

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Insuring all your vehicles under a multi-car insurance policy can be a simple way to save money when compared to taking out individual car insurance policies. It can also make managing the paperwork, claims and your renewals a lot easier. 

In this article, our experts explain how multi-car insurance works, who it best suits and what to watch out for.

What is multi-car insurance?

Multi-car insurance enables you to cover two or more vehicles under the same car insurance policy with a single provider. Depending on the insurer, multi-car insurance policies typically cover between two and six cars, although some will cover up to 10. You might also be able to add up to 12 drivers to your policy, but again, this will depend on the insurance provider. 

Multi-car insurance policies come with the same features as single-car policies. The key difference is that you usually receive a discount for each car you add to the policy. This is typically around 10 per cent.

Depending on which insurance provider you choose, you might be able to add multi-car breakdown cover to your policy, as well as other optional extras such as motor legal protection. These add-ons will apply to all the vehicles and drivers on the policy. 

Choosing a multi-car insurance policy means you’ll usually only have one set of paperwork to deal with, and you might also only have one renewal date, making the whole process much easier to manage. 

How does multi-car insurance work?

There are two main types of multi-car insurance to be aware of. These are:

  • Linked policies: each car you insure has its own policy, and you can decide on individual levels of cover. For example, you might select a comprehensive insurance policy for your own car but a third party, fire and theft policy for your teenager. Each policy also has its own renewal date 
  • A single policy for multiple cars: this is one policy for all vehicles. This means that the level of cover and the optional extras are the same for each car and driver. The renewal date is also the same – this is usually based on the date the first car was added to the policy 

In many cases, multi-car insurance only covers cars at a single address, but some providers will also cover family members who live elsewhere, for example, if your child is at university.

Can each driver have their own no-claims bonus?

Most multi-vehicle insurance policies let each policyholder build up their own no-claims bonus claims discount (or bonus). This reduces the price of your premium for each year you don’t make a car insurance claim. Keeping your discount separate is important, as it means that if one person on the multi-car policy is involved in an accident and makes a car insurance claim, only their no claims bonus is likely to be affected – the discounts for everyone else will usually remain unchanged. 


Is multi-car insurance cheaper than individual policies?

If you insure two or more cars on the same car insurance policy, you’ll typically be given a discount for each car you add, so the more you add, the more you’ll save. This discount will apply automatically when you add a new car to your policy. Discounts are typically around 10 per cent for each car, and you can usually add up to five or six cars.


However, to be sure you’re getting the best deal, it’s wise to compare the cost of multi-car insurance against separate car insurance quotes for each car to see what works out cheaper overall. This is because multi-car insurance won’t necessarily be cheaper for everyone. 


For example, if you were looking for a multi-car insurance policy for a 50-year-old experienced driver with no previous convictions and an 18-year-old new driver in a modified car, your premium would be based on the risk each driver poses to the insurer. Including the less experienced driver on the policy would considerably push up the premium, so it could be much cheaper for the 50-year-old to take out their own policy instead. However, the cost of a separate policy for the 18-year-old might be prohibitively expensive, so you’d need to consider what works best for you. 


Similarly, if you drive a car from a lower insurance group, and your housemate has a more powerful vehicle, multi-car insurance could end up costing you more than an individual policy. 

Pros and cons of multi-car insurance

If you’re considering whether a multi-car insurance policy is right for you and your household, take a look at the following pros and cons to help you make your decision:


Having all drivers and cars insured under one policy can make it easier to manage claims and renewals Depending on the insurer, you might be able to cover cars at different addresses – for example, if your child is at university Each driver has their own no claims discount, so if another policyholder needs to claim, your no claims discount should remain unaffected The more cars you add to your policy, the more you could save (though this might not always be the case)


If you add a less experienced driver to a multi-car insurance policy, it could push up the cost, in which case it might be cheaper to take out individual policies If your multi-car insurance policy has synced renewals, you could have a hefty bill to pay each year. But if you pay monthly, interest is usually added to the cost, making it more expensive If one driver makes a claim on the policy, the cost of the premium might rise for all other policyholders the following year
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Who does multi-car insurance work best for?

Multi-car insurance new driver
Families with a child with their own car living at a different address – such as at university – could benefit from multi-car insurance (Adobe)

According to the Department of Transports latest National Travel Survey, 34 per cent of households have two or more cars. However, that can mean many different things. So if any of the following scenarios apply to your household, you might want to consider multi-car insurance:

Scenario Why it’s worth considering multi-car insurance
Families with more than one car at the same address Instead of keeping on top of overlapping renewals dates, you can renew your entire household’s car insurance in one fell swoop
Families who have a child with their own car living at a different address This can potentially give your child the benefits of cheaper car insurance, despite them not living permanently at the family home
Couples who have one car each You don’t need a fleet of family vehicles to benefit from multi-car insurance – just two cars is enough to start potentially saving money
Shared households with multiple cars Multi-car insurance isn’t just limited to the ‘traditional’ family unit – if you live with friends, you can take out a multi-car policy together
If you own more than one car Multi-car insurance can save you a lot of time and hassle when compared to individually insuring all of your cars

How to get cheaper multi-car insurance quotes

Many insurers offer a discount for each car you add to your multi-car insurance policy. This means the more cars you add, the more money you save.

However, there are other steps you can take to try and reduce your multi-car insurance quote:

  • Shop around: comparing quotes from a range of insurers is key to keeping the cost of multi-car insurance down. However, be aware that while multi-car insurance has the potential to save your household money, there’s no guarantee it will work out cheaper than buying separate insurance policies for each vehicle, as each provider will have different rates and policies
  • Increasing your voluntary excess: the higher your voluntary excess, the lower your premium will be. However, you’ll need to balance reducing your premium with an excess you can realistically afford
  • Pay annually: although it might be tougher with a multi-car policy, paying annually instead of monthly means you can avoid being charged interest
  • Maintain your no-claims discount: opting to pay for small repairs instead of making a claim can protect your no-claims discount, and make your premiums cheaper in the long run
  • Don’t ‘auto-renew’: allowing your multi-car insurance to auto-renew may end up costing you more money, as you won’t have had a chance to seek a cheaper quote elsewhere, or the opportunity to negotiate with your current provider
  • Improve your car’s security: while some modifications will push up the price of your premium, certain security features, such as dash cams and immobilisers, can help you get a cheaper quote
  • Carefully choose your add-ons: the more optional extras you include, the more your multi-car insurance will cost, so weigh up each one carefully

What are the best multi-car insurance additional cover options?

The following table shows the best multi-car insurance add-ons you can include to get the most out of your policy. Some of these might be covered as standard by your policy, while others will require you to pay an extra fee.

Optional extras Description
Breakdown cover Offers roadside assistance if one of your cars breaks down
Driving abroad cover Provides cover for driving your cars in countries outside the UK
Motor legal protection Covers legal fees if you’re involved in an accident that’s not your fault
Personal accident cover Pays out if you’re injured or killed in a road accident
Personal belongings cover Provides cover for lost, stolen or damaged belongings left in the car
Courtesy car cover Offers a replacement courtesy car while yours is being repaired after an accident
Replacement key cover Covers the cost of replacing a set of keys if they’re lost or stolen
Protected no-claims discount cover Protects your no claims discount from a certain number of claims each year
Windscreen cover Pays out if your windscreen cracks and needs to be repaired
Misfuelling cover Covers the cost of draining and flushing your fuel tank if you accidentally fill up one of your cars with the wrong type of fuel

How do you compare multi-car insurance quotes?

Multi-car insurance quote
You’ll have to get quotes from each provider you’re considering when shopping for a new multi-car insurance policy (Adobe)

Unfortunately, price comparison sites don’t offer multi-car discounts, so you’ll need to get quotes from individual insurers to find the cheapest multi-car insurance deal. These insurers include Admiral, Aviva, LV, Diamond and Elephant. 

It’s best to compare these results with separate car insurance quotes for each car to make sure you’re getting the best deal. The easiest way to compare separate car insurance quotes is through a price comparison website, as this will compare a range of insurers.

Before you can find the cheapest multi-car insurance quote, you’ll need to fill in a quick online form and provide a few details, such as:

  1. Your personal details, including your name, date of birth, address, occupation and driving licence information  
  2. Your personal claims history and the number of no claims discount years you and any named drivers have
  3. Details of each car you wish to insure, including when you bought it, the registration number, where you park it overnight and the estimated mileage

When comparing multi-car insurance quotes, you should check the small print carefully and look for the following:

  • Can the policy be amended to add more or fewer cars in the future?
  • What’s the maximum number of cars and drivers that can be added to the policy?
  • How many years are you tied into the policy? This is usually 12 months but might differ if you’re adding cars at a later date and syncing the renewal dates
  • Do all the cars need to be kept at the same address? 
  • What’s included as standard, and what do you need to pay extra for? 

Once you’ve found a cheap multi-car insurance quote, it’s sensible to read provider reviews online, looking at factors such as how easy other customers found it to submit a claim, how quickly the insurer paid out and whether there were any factors that prevented a claim from being paid out.

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Frequently asked questions about multi-car insurance

As with insurance for one car, multi-car insurance offers three different levels of cover. These are:

  • Third party only: this is the legal minimum requirement for drivers and the most basic type of cover. Third party insurance only covers you for injuries to other people or damage to their car or property. It won’t cover any damage to your own car or any injuries you suffer. 
  • Third party fire and theft: this provides an additional layer of protection. As well as covering everything you’d expect from the level below, third party, fire and theft insurance also covers your own car if it’s damaged by fire or stolen. 
  • Fully comprehensive: as its name suggests, this is the highest level of cover you can buy. As well as covering you for everything included in a third party fire and theft policy, it also covers damage to your own car and any injuries to you or your passengers if you’re involved in an accident.

You’ll need to decide how much cover you feel comfortable with. But don’t assume that comprehensive insurance is more expensive than third party-only. Most of the time, it’s the other way around. 

You can only drive the cars listed on your multi-car policy if you’re added as a named driver. This effectively means you’ve let the insurer know you might drive this car from time to time. If you’re not added as a named driver for a particular car, you won’t be able to drive it.

Multi-car insurance policies usually last for the standard 12 months, which is the same as a single-car insurance policy. However, if you’re adding other cars to the policy when their renewal dates come up, your multi-car insurance policy might last for a shorter period.

For example, if you started a multi-car insurance policy with two cars in January, it would renew a year later – the following January. However, if you were to add a third car in September, it would then have the same renewal date as the other two cars in January, which is only four months later.

The average cost of multi-car insurance will depend on a range of factors, including the age of the drivers, their driving history (including whether they have any previous convictions), the number and type of cars being insured and the amount of the voluntary excess.

Molly Dyson

Senior Editor

After growing up with a passion for writing, Molly studied journalism and creative writing at university in her home country of the United States.

She has written for a variety of print and online publications, from small town newspapers to international magazines. Most of her 10-year career since relocating to the UK has been spent in business journalism, writing and editing for admin professionals at PA Life magazine and business travel managers at Business Travel News Europe and representing those titles at conferences around the world.

Now an Editor at the Independent Advisor, Molly is an expert in a broad range of consumer topics, that include solar panels and renewables, home improvements and home insurance, and consumer technology such as home security and VPNs.

In her free time, Molly can usually be found exploring the outdoors with her husband and their young son or gardening.