Introduction to Multi-car insurance

As we all understand that bulk buying in day to day purchases can save our money, but did you know this methodology also works on your car insurance? Many auto insurance providers can offer 10 to 20 percent discounts on the policy if a customer adds more than one car to the same policy. A multi-car policy can be defined by an insurance policy that bundles all the policies for the different cars with one insurer so they’re held together separately. It combines all separate vehicle policies into a single policy that renews at the same time. With a multi-car insurance policy, anyone can get all the advantages of separate policies such as separate no claims discounts and excesses.

Here, We will discuss the benefits of a Multi-car insurance policy and how does it work?

How does it work?

A multi-car insurance policy is designed for households with more than one car. A standard multi-car policy can usually cover up to a maximum of five cars on one policy. It works in the same way as a policy with only one car on it. When one fills out the quote form, he/she has to provide information about the cars he or she own and who drives them. Some car insurance firms may ask about the primary driver for each car, which vehicle is primary for each driver, or both. Different insurance carriers may have different guidelines about how many cars and how much discount can be given on one multi-car policy. Auto insurance companies automatically apply multi-car discounts according to their guidelines to a multi-car insurance policy when an individual applies for it.

In a multi-car insurance policy, some coverages are shared by every driver on a policy, while others are applied only to one vehicle. For instance, liability coverage(bodily injury and property damage to the third party), PIP(Personal injury protection), and underinsured motorist coverage are shared by every vehicle (and every driver) on a policy. However, comprehensive and collision coverage can be set differently for each vehicle.

There are some eligibility requirements for a multi-car discount. These eligibility requirements vary from one car insurance company to the next. Therefore, it is important to comparison shop when trying to get the best multi-car insurance rates for your household vehicles.

When someone wants to add an extra vehicle on a household car insurance policy, the extra added vehicle would also receive a discount. The other pre-added vehicles would continue to get their current multiple-vehicle discounts, but not an extra discount.

The other benefits of multi-car insurance discount

1. Some insurance carriers provide a type of multi-car insurance policy in which an individual can keep separate renewal dates, meaning he/she won’t get stung with all the renewal costs at the same time.
2. The other policyholders can be other members of family or friends living at the address, or even an individual as the main policyholder but insuring a second vehicle as well.
3. No Claim Discount(NCD) won’t be affected by other vehicles in the household. If one vehicle has an accident or makes a claim on one vehicle the NCD on the other vehicles won’t be affected.

As always, it is important to consider all options and scan every small print before signing up for a policy.

However, an individual might not always save money with a multi-car insurance policy. The potential of saving depends on the individual circumstances and driving history as well as those of the other drivers listed on the policy. For illustrations, one of the policyholders may be a young or inexperienced driver, some car has modifications or they have a history of claims or driving offenses. In some cases, an individual could also get a better deal for separate policies than that of a multi-car insurance policy for the vehicles he/she has.

It’s also worth bearing in mind that by bringing all of the cars’ renewal dates into line with one insurance company, an individual may face a big bill at renewal time each year.

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