Multi-Car Insurance
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Looking to insure multiple vehicles at once? Multi-car insurance is a solution for households with multiple vehicles, offering convenience and potential cost savings. With multi-car insurance, you can insure all your vehicles under a single policy, simplifying the insurance process and potentially reducing your premiums.
If you're ready to explore your car insurance options, you can compare quotes online today to find cover that works for both your needs and budget.Â
What is multi-car insurance and how does it work?
Multi-car insurance is a type of insurance policy which allows you to insure multiple vehicles under a single policy. Under this type of insurance, you can streamline the insurance process by managing all your vehicles' coverage in one place. In terms of how many vehicles you may be able to cover, this can vary from two to as many as ten, depending on your insurer.
When you opt for multi-car insurance, you’ll typically receive a discount on the premiums compared to insuring each vehicle separately. The exact discount may vary depending on the insurance provider and the number of vehicles you insure but may range from 5% up to as much as 15% in some cases. This may mean your car insurance premiums are cheaper overall.
Each car on the policy retains its own coverage details, such as the level of coverage, excess and any additional optional extras you choose. For instance, you may have a different excess on your brand-new four-wheel drive than you would on your child’s older hatchback. However, it's also important to note that each vehicle on the policy will have its own risk factors, such as the driver's age, driving history and vehicle specifications, which can affect the overall premium.
It's important to note that not all insurers offer multi-car policies. Because of this, it's worth comparing quotes from different insurers to see if there are any policies available that are suited to your needs.
Who can take out a multi-car insurance policy?
In Australia, multi-car insurance policies are available to a variety of individuals. The eligibility criteria for taking out a multi-car insurance policy may vary slightly among insurance providers, but you’ll generally need to be living at the same residential address to take out this type of policy. Some of the individuals and groups who can take out an insurance policy for multiple cars include:
- Families: families living under the same roof with multiple vehicles can opt for multi-car insurance to cover all their cars under a single policy. This can simplify the insurance management process when it comes to both parents driving each car, as well as any children who are learning to drive or have their full licence.
- Couples: couples who own more than one vehicle can also consider multi-car insurance. It allows them to insure both their cars under a single policy and list each other as the secondary driver on each vehicle.
- Shared households: individuals living in shared households, such as roommates or friends, who collectively own multiple vehicles can also explore the option of multi-car insurance.
- Individuals with multiple cars: even if you’re the only driver in your household but have multiple vehicles registered in your name, you may look at taking out a multi-car policy.
It's important to note that each insurance provider may have specific requirements and limitations regarding the number of vehicles, driver qualifications and relationship between policyholders. It's advisable to check with your insurer to determine the eligibility and suitability of a multi-car insurance policy based on your specific circumstances.
What are the other potential discounts available with car insurance?
Having multiple vehicles isn’t the only way to secure a discount on your car insurance policy. Some of the other car insurance offers which may apply to you include:
- No-claim bonus: this discount is awarded to policyholders who haven’t made any claims during a specified period. The longer you go without making a claim, the higher your no-claim bonus becomes, potentially leading to lower premiums.
- Loyalty discounts: some insurers may offer discounts to customers who’ve been loyal to their company over a certain period. These discounts may increase over time, providing further savings.
- Policy bundling discounts: if you have multiple insurance policies with the same provider, such as car insurance and home insurance, you may be eligible for a discount. Insurers who offer a range of different products will often advertise discounts when taking out more than one with them.
- Online purchase discounts: many insurers offer sign-up incentives to new customers who purchase their policy online. This may be a certain percentage off your premium for a set period, such as 12 months. When comparing offers such as these, it’s important to determine whether the short-term discount is worth it in the long run.
- Safety discounts: vehicles equipped with certain safety features, such as anti-lock brakes or car alarm systems, may qualify for discounts as they’re considered safer to insure. This may also apply if you’re parking your car in a garage or have gone an extended period without any accidents or road offences.
- Low usage discounts: if you don’t drive your vehicle much, such as if you take public transport to and from work, you may qualify for a lower premium, as your time on the road (and therefore your exposure to a potential accident) is reduced.
Types of car insurance you can choose from
The most basic type of optional cover available, TPPD insurance can offer protection for damage caused by your vehicle to other people's property. However, no damage to your vehicle will be covered.
A step up from TPPD, TPFT insurance can also cover damage to your vehicle sustained due to a fire or theft (or attempted theft) in addition to third-party property damage if you're in an at-fault accident.
The most extensive (and expensive) form of cover, comprehensive car insurance can also offer cover for damage to your vehicle in an accident, collision and certain weather events on top of the areas TPFT covers.
The pros and cons of multi-car insurance
PROS
Policy discounts
One of the main advantages of multi-car insurance is the potential for cost savings. Depending on the vehicles you’re insuring and the drivers you may be sharing your policy with, you may benefit from cheaper premiums overall.
Convenience
Managing multiple vehicles under a single policy can simplify the insurance process. Instead of dealing with multiple policies, paperwork and renewal dates, having everything consolidated into one policy can make everything easier to keep track of.
Flexibility
Multi-car insurance policies can offer flexibility in terms of adding or removing vehicles from the policy. This can be convenient if you frequently change or add vehicles to your household, such as if you’re leasing vehicles for work use.
Separate claims history
If one of the drivers on your policy has to make a claim, they can typically do so without it affecting the claims history of any other drivers listed on the shared insurance.
CONS
Limitations on drivers
Multi-car insurance policies typically require all drivers to live at the same address or be immediate family members, limiting flexibility for other potential drivers on a policy, such as a couple who live at separate addresses.
Loss of individual discounts
When you combine multiple vehicles under one policy, individual discounts specific to each vehicle may no longer apply. For example, if one vehicle qualifies for a specific discount but the others don't, you may lose out on potential savings.
Potential impact on shared premiums
Although claims only affect the history of the driver making them, they may have an impact on the overall cost of the policy if they’re for an at-fault incident.
Cancellation complications
Cancelling a multi-car insurance policy can be more complex compared to cancelling individual policies. If one vehicle needs to be removed from the policy, it may require adjusting coverage and premiums for the remaining vehicles.
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