If you live in a household with more than one vehicle, you’ve probably noticed that managing car insurance can quickly become a tangled web of premiums and paperwork.
The good news is, you don’t have to put up with this hassle. There are clear strategies you can use to streamline your policies and ensure you’re not overpaying for duplicate coverage.
Understanding multi-car insurance
When you insure multiple vehicles under one roof, you have the option of taking out a multi-car insurance policy. These are designed to cover more than one vehicle under a single policy, which can often lead to savings.
With a multi-car policy, all the vehicles are typically listed on one document, and the same insurer handles all the policies. While this might sound simple, you must ensure that the coverage is appropriate for each vehicle.
Evaluating cost savings
Before committing to a multi-car plan, take time to evaluate the cost of each vehicle’s premium separately versus the bundled offer.
Some insurers offer substantial discounts for each additional car added, while others may only provide minimal reductions.
If you’re insuring older vehicles, for instance, the savings might be marginal, especially if the insurance premiums for these cars are already lower due to their age or value. In this case, it may be worth keeping them on separate policies, depending on the insurer’s offers.
Also, factor in how each insurer’s benefits and excess levels compare. Sometimes, a small discount on the multi-car policy can be offset by the loss of desirable coverage benefits or a higher excess on one of the vehicles.
Managing policy flexibility
The potential for flexibility in how you manage your insurance is a key advantage. You might have one car that’s only used occasionally and another that’s your everyday commuter.
A multi-car policy can often be adjusted so that vehicles with lower annual mileage or less frequent use are covered at a lower rate.
However, always read the fine print. Some policies may impose restrictions on how and when you can change the terms of your coverage. For instance, you may need to notify the insurer in advance if one car will be off the road for an extended period.
Look for insurers who offer more adaptable options that let you tailor the cover according to your usage. This will allow you to be as efficient as possible with the premiums you’re paying.
Optimising renewal timing
Renewal time is another area where households with multiple cars can find savings, or incur unnecessary costs if not managed properly.
It’s easy to forget that your renewal dates for each car might not line up. With a bit of forward planning, you can optimise these dates so they align, allowing you to handle everything at once.
You’ll also want to avoid letting your policy automatically renew, as this could lock you into terms that may not be the best deal. Shop around in advance to see if a multi-car renewal with a different provider could offer a better price or more suitable coverage for your vehicles.
