As families become larger with both spouses working different careers, it is becoming more and more common to have a few cars under the garage. As this becomes more common, car insurance shoppers need to recognize that they can save a little bit of money on insurance coverage if they just take the time to compare the market. Many car insurance providers are willing to give cheap car insurance to people who buy multi-car insurance policies. Take advantage of your situation and get the best possible deal, because insuring a car any other way is an expensive proposition. Here is a little bit of information on multi-car insurance and what it is all about.
So what is multiple car insurance all about?
The way it works is pretty simple, so you probably have a good idea of what multi-car insurance is all about. Many insurance companies let you take out one policy to cover all of the cars in your household. For many companies, the limit is five cars, meaning that you could quite easily insure the entire family’s fleet unless you have a very large, mobile family. As long as each car is registered to the same address, you can put it under an umbrella policy of this nature.
Why is multi car insurance cheaper?
The reason why it is usually cheaper should make sense to anyone who has worked in the business world before. For one, you are giving the insurance company more business, so they have the ability to reward you with a lower price. Additionally you are taking some of the burden off of their administrative offices. Because you have five cars insured under one policy, they have to do less paperwork and they have to keep up with fewer files. This is helpful to the company, so they can pass along some of the savings to you as a direct result.
You should keep in mind, though, that this kind of policy is not always cheaper. In some instances, it can be cheaper to insure each car individually. This all depends upon the insurance company and policies in play, so be sure to compare the market before making any final decision on an insurance provider.
Who is covered for what policy?
There are certain questions to ask before jumping in with one of these policies. One of the most important of these questions has to do with who is covered for what. When you have a large policy of this nature, not every driver in your family can drive every car. You will want to make sure that the right people are named on the right vehicles so that you won’t run into problems down the road.
What about my no-claims discount?
The no-claims discount is one of the most important things in addition to getting the cheapest car insurance quotes. You will want to make sure that your policy is worded so that only the driver who makes a claim loses his or her no-claims discount. Most car insurance policies are structured so that the other drivers in the family won’t lose theirs as a result of one claim by someone else.
Always check out the market
No matter what your car insurance needs might be, it pays to check to compare car insurance market and make sure that you are getting the best deal. Too many people fail to compare the market and this leaves them out of luck in the long run. Insurance is a consumer good just like a piece of fruit or the vehicle itself. Treat it this way and do a car insurance comparison before you settle on a multiple car or single car insurance policy.