How does multi-car insurance work?
Many households in Ireland have more than one car on the go. Multi-car cover may help reduce the overall cost and make your policies easier to manage. Here’s what you need to know.
What is multi-car insurance?
It’s car insurance for two or more cars in the same household with one insurer.
Multi-car insurance works differently between insurers. Some cover all your cars under one policy, while others set up a separate policy for each car.
You may get a discount for insuring more than one car, which can be around 10%. The saving available and the number of cars that qualify will depend on the insurer.
It may suit households that include:
Keeping your cars with one insurer can make your cover easier to manage and may reduce the overall cost.
How do multi-car policies work?
The way it works may differ between insurers, but generally, multi-car insurance can be offered as a linked or single policy.
Linked policies
Each car has its own policy with the same insurer, giving you more flexibility.
With linked policies, you can:
You can’t use the same no claims bonus on two cars. However, a claim on one policy won’t normally reduce the bonus earned on another.
If a driver doesn’t have their own bonus, ask whether their named driving experience could qualify them for a discount.
Single policies
All the household’s cars are covered under one policy, making paperwork, payments and renewals easier to manage.
Some specialist policies still allow each vehicle owner to build a no claims bonus in their own name.
A single policy won’t always be cheaper. The insurer still considers each car and driver, so adding a young or inexperienced driver—or a more expensive car—could increase the overall price.
Before choosing, check:
Do you have to live in the same household?
Cars included in a multi-car policy or discount will usually need to be registered at the same address. Eligibility varies between providers, so check the insurer’s rules before applying.
Can it reduce the price of young driver insurance?
A multi-car discount could reduce the cost of a separate policy for under 25s,with saving and eligibility depending on the insurer.
If the young driver doesn’t have their own no claims bonus, ask whether their experience as a named driver could qualify them for an introductory discount.
With a single multi-car policy, the insurer will consider every car and driver when calculating the price.
Adding a young or inexperienced driver could therefore increase the overall premium, so compare the total cost against separate policies before choosing.
Multi-car discount or combined policy?
Multi-car insurance usually works in one of two ways:
| Multi-car discount | Combined multi-car policy | ||
|---|---|---|---|
| Policies | Each car has its own policy with the same insurer. | All the cars are covered under one policy. | |
| Renewals | Each car can have a different renewal date. | The cars will usually renew together. | |
| No claims bonus | Each policy needs its own no claims bonus. | How the bonus works will depend on the policy. | |
| Good to know | You can choose different cover for each car. | You only have one policy and renewal to manage. |
Multi-car policies in focus
What if your household cars have different renewal dates?
If your household cars are currently insured with different renewal dates, you can still add them to new a multi-car policy. It can work in several ways:
- maintain separate policy renewal dates, but pay only once per year
- add one car and schedule your other cars to join the policy later when they’re due for renewal
- start your annual multi-car policy on the latest renewal date. So if one car is insured until January and the other is insured until March, then the 12 month policy will start in March, and your new insurer will provide temporary cover for one car until it begins
How do you insure a second car in Ireland?
You can add your second car to a combined multi-car policy or take out a separate policy for it.
Start by asking your current insurer whether they can add the car to your existing cover or offer a multi-car discount on a separate policy.
To get a quote, you’ll need details about the car, how it will be used and who will be the main driver. You’ll also need to confirm which car your no claims bonus applies to, as the same bonus normally can’t be used on two cars at once.
If you don’t have a separate no claims bonus for your second car, ask whether you could get an introductory discount based on your driving history or experience as a named driver.
How do no claims bonuses work with multi-car cover?
It works in the same way as a single policy. Each driver is responsible for their no claims record, so if one person claims on their car, it doesn’t affect anybody else’s bonus.
This also means that every member of the household is responsible for building their own no-claims bonus so they can’t benefit from another household member’s no claims discount.
Can you drive the other cars listed on the household's multi-car policy?
You can become a named driver for other cars in your household, so potentially, you could all be main drivers and named drivers on each others’ cars.
You could also add an open driver benefit, which allows other people to drive your car, providing they have your permission and meet insurance company requirements.
An open-drive policy does not permit you to drive someone else’s car.
Can you have different excesses for each car?
Yes, although, as with a standard policy, the lower excess you pay, the higher the premiums, so if you want to keep costs low it is better to pay a higher premium.
Levels of multi-car insurance cover
Drivers on a linked policy multi-car cover can each choose from three main types of car insurance offering different levels of protection. Drivers on a single policy multi-car cover will be on the same level of cover.
Third Party Only
Compensates third parties if you cause an accident. Damage to your car won’t be covered. It’s the minimum legal requirement.
3rd Party, Fire and Theft
Covers third parties plus protection for damage to your vehicle caused by fire or theft. Damage by vandalism isn’t covered.
Comprehensive
Covers all parties involved in accidents, your car and belongings. Plus theft and damage caused by vandalism.
What extras can you get with multi-car insurance?
As with a standard policy, you may get additional benefits or pay for them as add-ons. They may be provided on an individual basis or to cover the whole household:
Who offers multi-car insurance in Ireland?
Some insurers and brokers offer discounts or specialist policies for households with more than one car. Here are some current examples:
- Aviva 10% off second and additional car policies, covering up to five policies per household
- 123.ie Up to 20% off a new second-car policy, including its online discount
- AXA 10% off a new car policy if AXA already insures a car, home or van for someone at your address
- Arachas A combined family policy for households with three or more vehicles, where the main vehicle is worth at least €40,000
Discounts are subject to acceptance criteria, minimum premiums and other terms.
Pros and cons of multi-car cover
If you live in a family or household with more than one vehicle, it’s worth considering multi-car insurance. However, as well as the advantages, some drawbacks exist.
Here’s some pros and cons to consider:
Pros
Cons
Is multi-car insurance worth it?
Multi-car insurance may be worth considering if you have several cars at the same address and the discount makes the overall cost lower. It can also make your policies and renewals easier to manage.
However, it won’t always be the cheapest option - particularly if your household includes a young driver, a high-value car or drivers with very different insurance needs.
You can compare the total cost, cover, excesses and exclusions against separate policies before deciding.
Tips for choosing multi-car insurance
Multi-car insurance may save you money, but before you buy a multi-car policy for your household, here are a couple of things to consider:
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