Combining Policies to Maximise Savings on Car Insurance

Car insurance provides peace of mind while you’re on the road. It’s also a legal requirement for drivers in the UK, so it’s vital that you have cover in place before you get behind the wheel. 

Although it’s a necessary expense, it doesn’t have to break the bank. There are ways to make savings on your car insurance – and one of them is combining policies.  

Understanding multi-car insurance policies

If your household has more than one vehicle, you could take out multi-car insurance to potentially reduce your overall premiums. This is because this type of cover allows multiple vehicles, typically registered at the same address, to be insured under a single policy. These are ideal for families or households with several drivers who own separate cars.

The main advantage of this is the opportunity to save money. There are many insurers that provide price reductions for each additional car added to the policy. This not only reduces costs but can also simplify renewals and paperwork, as all vehicles are managed under one agreement.

However, even though the policy is shared, each car can have its own level of coverage, such as third-party, third-party fire and theft, or comprehensive insurance. When considering multi-car insurance, check that the insurer offers flexibility in coverage levels for individual vehicles on the policy. 

Exploring multi-policy discounts

Another way to save money is by bundling car insurance with other policies, such as home or life insurance, from the same provider. This is often referred to as a multi-policy discount.

Insurance companies reward customers who combine their policies for their loyalty. It also reduces administrative costs for the companies, so this is another reason to celebrate the customers who choose several of the cover types they offer. 

For drivers, there are pros and cons to be aware of. Some of the benefits include lower premiums and the convenience of dealing with one insurer for different types of insurance. However, there’s reduced flexibility. If you find a better deal on one policy elsewhere, switching may become difficult without forfeiting the multi-policy discount. Therefore, it’s important to work out if this is the best option for your household. 

Evaluating combined policy costs

While combined policies often provide savings, double check they offer value for money. Start by comparing the cost of individual premiums against a combined option. 

Look beyond the headline price to examine the coverage provided and ask the key questions. Does the policy include all the coverage you need without unnecessary extras? Are there exclusions that might impact you later? Does the combined policy offer any unique perks or benefits?

Tips for maximising savings

1. Shop around: Insurers vary widely in the discounts offered for combined policies. Use comparison websites and get quotes from multiple providers.
2. Negotiate: If you’re an existing customer, ask your insurer for loyalty discounts. They may match or beat competitors’ offers.
3. Pay annually: where possible, opt for annual payment instead of monthly instalments as this can result in savings.
4. Avoid coverage gaps: When combining policies, make sure the cover is appropriate for your needs in order to avoid costly surprises. For example, check that multi-car policies cover all drivers using each vehicle.

Take the time to work out if a multi-car policy is suitable for you. You could find that you make savings by making the switch.