With multi-car insurance becoming more and more popular, much like anything, there are positives and limitations. This article will be explaining each of these in detail, alongside outlining what multi-car insurance actually is and how it works.
Read on to find out more…
Pros of multi-car insurance:
- Simple process
A lot of people pick this type of insurance because it’s an easier way of dealing with an important task. If you are a family with more than one vehicle, having this type of insurance policy is less hassle and means you only have one set of paperwork to sign!
Additionally, there is only one renewal date. So, 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 from having to worry about checking your children are up to date with their insurance renewals.
- You can save money
The more people you add to your policy, the more money you could save!
If your entire household is under the same plan, you could qualify for a cheaper plan. 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 – seems ideal, right?
- Different drivers
As long as each vehicle driver under the policy is registered to the same 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.
Cons of multi-car insurance:
- One renewal date
Some might see this as a limitation, as it means the single renewal date will be a larger sum at one specific time. If you are a household used to paying separate bills, at different times of the year, this could come as a financial shock; but if you plan ahead, you can surpass this issue.
Some insurers even let you may payments in monthly installments, although you might be charged interest for this over time.
- Risk assessments
The insurance premium you pay is based on a risk assessment of everyone being covered. If you have someone in the household who counts as a high-risk driver, this can really push the premium up. High-risk drivers are those who have accidents or incidents in their driving history. Very young or very old drivers can also be considered as high risk.
- Claims
If one driver has to make a claim on a multi-car insurance policy, it could increase the premiums for other drivers on the plan. For example, if a new, inexperienced driver is in on the plan, and they had an accident, it could increase the premiums – even for those on the plan who are experienced drivers with no accidents.
We hope this article has helped you to see the benefits and limitations of multi-car insurance. Now, you can decide whether you would like to join thousands of other drivers and insure under a multi-car policy!