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If you live in a home with multiple vehicles, you could purchase a car insurance policy for each one. But typically it’s more convenient—and cheaper—to insure all the vehicles with the same provider under a multi-car insurance policy.
This type of car insurance coverage allows you to purchase a single policy to cover multiple vehicles. Many car insurance companies offer multi-discounts of up to 15% or more, whether through multi-car policies or through multi-policy discounts (which is where you take out a different type of insurance with the same company, such as your home and contents insurance).
There can be limitations to multi-car insurance though, such as a limit to the number of cars you can have on one policy. This is why it’s crucial to know how a multi-policy car insurance policy works in Australia, and the specifics and conditions of your insurance provider.
How Does a Multi-Car Insurance Policy Work?
A multi-car insurance policy works by insuring two or more cars on one car insurance policy. This situation is most likely in a family that has two or more cars all garaged at a single location, such as your family home or workplace.
Setting up a multi-car insurance policy is as simple as letting the car insurance company know you have multiple cars in your household that you want to place on the same car insurance policy.
If you have one car and buy another, let your car insurance company know you would like to add it to your existing policy and make it a multi-car insurance policy (if this is available).
With a multi-car insurance policy, some types of coverage—such as third-party insurance—will be the same across every vehicle insured under the policy. This means the same limits are set for each car.
In other cases, such as comprehensive coverage, you might be able to mix and match coverage on a vehicle-by-vehicle basis.You can customise this coverage by car, so if you have a new car you can have comprehensive insurance on it, while skipping those coverages on an older car.
One big advantage of multi-car insurance is that you often will earn a discount with this type of policy. Insurance companies typically offer price breaks to policyholders who insure multiple cars under one policy.
Requirements for Getting Car Insurance on Multiple Vehicles
The main requirement when getting car insurance for multiple vehicles is typically that all the cars on the multi-car insurance policy are kept at a single address and owned by family members within the household.
One exception to this rule can be when a young adult temporarily lives away from home for reasons such as boarding school or university. Car insurance companies normally allow the student’s vehicle to remain on the family multi-car policy in this situation, but don’t assume that will be the case. Consult with your insurance company to find out whether that option is available.
Car Insurance Companies That Offer Multi-Car Discounts
Many car insurance companies offer discounts to households that insure multiple cars under one policy. As stated, there are also multi-policy discounts available which means you’ll receive a discount for having numerous insurance policies under the same provider–not just car insurance.
Some examples include Bup, Suncorp, GIO, RACV and more. Always read the product disclosure statement before taking out a policy to ensure you know what you are entitled to.
How Many Vehicles Can I Insure on One Policy?
The number of vehicles you can put on one car insurance policy varies by insurer but the typical amount is between two or four cars.
You must insure at least two cars on a single policy in order to get a multi-car discount, but car insurance companies can limit the number of cars you can insure on a multi-car policy.
Benefits Of Insuring Multiple Cars On One Policy
There are several benefits of insuring multiple cars on one policy, including:
- Savings: You often get a discounted rate compared to what you would pay for a single policy. For example, you might save up to 15% or even more;
- Convenience: With just one policy, you’ll have less paperwork. In addition, your household will have one bill, with coverage of all the cars in your household renewing at the same time;
- Better coverage: Some of the savings you gain from purchasing multi-car insurance can be used to buy more robust coverage than you otherwise could afford; and
- Lower excess: Some companies have one excess for all your vehicles when you purchase a multi-car insurance policy. That means that if two of your vehicles are damaged in one event, such as in a storm, you’ll only have to pay one excessfor both cars.
Is Insuring Multiple Cars Under One Policy Ever a Bad Idea?
While purchasing multi-car insurance is a great option for many people, it might not be the right choice for everyone. For example, if you own two vehicles and use one for business, it’s best not to use the same policy to cover both vehicles. You instead want to purchase a separate car insurance policy for the business vehicle due to your business needs.
A multi-car policy might also end up being more costly if someone in your household has an extremely expensive car that costs more to insure.
There can additionally be problems if you’re splitting a policy and a roommate, significant other or another person who doesn’t live up to their end of the bargain by paying their share of the insurance.
Frequently Asked Questions (FAQs)
Is multi-car insurance cheaper?
Yes, multi-car insurance can often work-out to be cheaper as the insurance provider may offer you a discount in return for buying another policy with them. This can often be a saving of 15% or even higher, depending on the provider.
Does Allianz have multi-policy discounts?
At the time of writing, Allianz does not offer a multi-policy discount whether for multiple car insurance policies or for combining other policies, such as travel insurance and home and contents policies.
You can read more about the inclusions of the Allianz Comprehensive Car Insurance policy in our review here.
Is multi-car discount the same as multi-policy discounts?
Multi-car discounts are similar to multi-policy discounts, except they are specific to taking out multiple car insurance policies with the one provider if you have multiple cars. Whereas some insurance provider offer multi-policy discounts, which can mean that you can get a discount if, for example, you have health insurance with a provider and decide to also take out travel insurance with them.
