How Does Multiple Car Insurance Work? What Are Its Advantages?

Too many vehicles that you own? Is it always tough to get each of them insured and take care of them individually? Why not take care of all these problems at once with multiple car insurance? Multi-car insurance is exactly what it sounds like; let us suppose there is a person named Satvik. Satvik bought a car not long ago; he bought 2 matching vehicles for both his wife and himself. Now it will be very tough for him to maintain and keep up with the insurance formalities for both vehicles. This is where multi-car insurance comes to the rescue. He can now take care of the insurance of both vehicles in one go. If it is still unclear what multi-car insurance is about, worry not, as we will be getting into detail about it immediately.

What is Multi-car insurance about 

 Multi-car insurance is all about less pricing and more accessibility and features. Going for multi-car insurance can open up new discount opportunities for you, with the added perk of going easy on your pockets. For instance, Direct Line knocks off 15% of the price for additional cars in the first year of the policy.

Thiscut-offf in price is that when two vehicles are registered under the same policy document, it costs the insurer less as they have to issue only one policy document. Even though some insurers boast of low costs for multi-car insurance, there are still some sources that have talked about the same which  is more expensive than single car insurance.

According to data, it has turned out that multi-car insurance has proved to be costly in particular cases. The following example proves how multi-car insurances have turned out to be more expensive compared to single car policies. Let us take an 18- year old male student who has just passed his test and drives a Ford Fiesta LX. If he was to go out and take the policy on his own, the cost he would be looking at could be anything from £2,955.42. This would lead to the observation that multi-car insurance can sometimes be way costlier.

If the Ford is put together with a BMW 318 in the same house and a 50-year old male as the main driver of the second car, a joint policy with Admiral would be about £6,774. However, as the cost of insuring the BMW on a separate policy is £397.54, this again works out more expensive than choosing two separate single policies separately.

According to sources like Policybazaar, multiple car insurance quotes online have been found to evaluate the data. For cars less than 1000 CC is about 5286 rupees; for cars between 1000 CC to 1500 CC, it is about 9534 rupees, and for cars greater than 1500 CC, the multi-year policy can cost up to 24305 rupees.

In the case of two-wheelers, the vehicles less than 75 CC, the multi-year( five-year) policy can cost upto 1045 rupees, the vehicles with the CC range of about 75 CC to 150 CC can have the cost around 3285 rupees. In contrast, vehicles with a 150- 350 CC range and vehicles with a range greater than 350 CC can have an insurance cost of 5453 rupees and 13034 rupees.

Car Insurance and some things to remember

Since we need to get out on the road daily, where most even prefer to commute to their workplaces via a car, it becomes equally important to get the vehicle insured. Car insurance turns out to be useful in case of any damage to your vehicle or theft. If your vehicle/ car is already insured, then any damage that happens to your car gets covered by the insurance company; that’s what they are for.

The car insurance quotes online available to us can be calculated with the help of a certain formula:-

Premium = Own Damage Premium – (No claim bonus + discounts) + Liability Premium as Fixed by the IRDAI + Cost of Add-ons

According to the car insurance tariff, as issued for the year 2017-2018, vehicles with an engine capacity less than 1000cc will get insured for a premium of 1850 rupees, vehicles in the 1000cc to 1500cc range will get the premium of 2863 rupees and vehicles with an engine capacity greater than 1500cc will get the same done for 7890 rupees respectively, as suggested by the data received from Bankbazaar.

Advantages of multiple car insurance

Multi-car insurance policies are drafted so that they can provide the car owner with a convenient state of mind regarding his/her car’s insurance. Though the cost and coverage these plans provide may vary from one policy to another, the main focus of all of it is to provide the car owner with an ability to maintain and offer the car insurance policy is a lot easier way.

Few benefits of having multi-car insurance are:

1. The car owner does not have to shuffle between various policies for all of his various vehicles. It is very easy for an individual to have one single plan instead of multiple plans for all the vehicles one owns. This single plan can take care of the various following things like vehicle theft, car wreck, etc.; instead of juggling between different paperwork, policies, etc., multi-car insurance provides many benefits in one single place.

2. Multi-car insurance is, most of the time, more economical too. When individuals buy different plans for a different vehicle, they need to pay an independent premium for each of them, which is also harder to manage. In this way, you get better discounts. This is why by havingone, you can save more money and be hassle-free.

3. Multi-car insurance also reduces the risk of coverage lapses as there are fewer chances that you might forget to pay for the policies.

4. It also allows you to have a single renewal date, hence makes things simpler.
Even though multi-car insurance might seem like a more lucrative and exciting option, it should only be opted for after going through the terms and conditions once. If the individual car insurance quotes online sound better than the multiple car insurance quotes online, the former should be preferred for the long run to save money and prevent extra costs.