Mulit-car insurance may not save money

If, like a third of the UK population, you have more than one car in your household, you might think the cheapest way to insure them is with a multi-vehicle policy. After all, you are giving the insurance company more business and making it easier for them to bill.

In the same way that it makes financial sense to have the one provider for your telephone, television and internet you would think that bulk buying car insurance would work on the same principle. This is not, however, always the case. In fact, according to swiftcover.com some of us may be paying twice as much as we would if we took out separate policies and, on average, we are paying around 60% more than we should.

Owning a second car has been on the rise over the years. In 1980 only 15% of us had access to two cars. In 1990 it was 23% and in 2008 it was 32%. In rural areas, understandably, the proportion of households with more than one car is greater (47% as opposed to only 17% in London).

At times like this when we are all seeking to cut back on household expenditure it makes sense not only to do one’s homework when it comes to choosing which insurance company to use but also to consider whether we do in fact need two cars.

Even if you do not want to part with your second car, could you save yourself some money on a short term basis by declaring it off road? If your second car does only a few thousand miles a year could you save money by using an insurer who takes this into account? If you have two large cars could you get by with just a small run around car as your second vehicle? By making small changes not only could you help your finances but you could also benefit the environment at the same time.

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