Be Wiser Guide To Multi-vehicle InsuranceTue, 25/09/2018
Whether you’re in the market for your family or for your business, multi-cover insurance has become a popular slice of the insurance industry. Its primary player has quickly become multi-car insurance, whereby a number of cars can be covered by a single policy, saving the driver both time and money. Multi-cover insurance policies provide drivers with both a great sense of comfort and ease as they receive only one set of documents and one renewal date. This unique type of coverage often offers drivers large discounts for the more vehicles on the policy and is not only limited to cars: multi-cover policies for motorbikes and vans are also popular variations for motorists and businessmen alike.
But can a motorist who owns a variety of vehicle types seek the same kind of encompassing insurance? Here is our guide to multi-vehicle insurance cover and the best tips and tricks to keep your premiums low.
Multi-car coverage- the basics
The most common type of multi-vehicle coverage is a multi-car policy. This insurance type is a great solution for those who are looking to insure several cars under one policy which is the primary reason why it is so popular for households that have more than one car. Multi-car policies tend to provide coverage for up to five cars at a time, with insurers usually providing discounts for each car insured. In addition to families who have more than one driver, these policies are a good choice for couples who each drive their own car and those individuals who own more than one.
The simplicity provided by a multi-car policy is one of the leading reasons why it appeals to an increasing number of motorists. This one policy will provide the same benefits as regular car insurance only for more than one car at a time, and the cost of insurance premiums are based on the same generic factors. There are a few important points to make note of here however. Not all insurers will offer cover for drivers living at different addresses (e.g. if you have a child at university), and the age and experience of the motorists who are covered will impact the overall cost, in addition to how much each individual car is worth.
How different is multi-bike coverage?
Multi-bike insurance is a policy type made in the same vein. The primary difference between it and coverage for multiple cars are the behaviours of the bikers themselves. Typically, bikers tend to own several bikes at a time, for example having one bike for the daily commute and another more expensive model to take to the road at the weekends. With this in mind, insurers are aware therefore that bikers cannot ride more than one bike at a time and so insurance premiums reflect this. Multi-bike insurance tends to cover up to four bikers at a time, and insurers base the insurance premium on the most expensive motorbike on the policy. Many insurers will also allow policyholders to add additional bikes if necessary.
Much like its car alternative, multi-cover for bikes offers the generic coverage types for riders. Policyholders can choose from comprehensive, fire and theft and third party only coverage, as well as typical additional services such as breakdown and injury claim cover. The cost of specific insurance premiums is based on general quote factors, i.e. the bike’s age, performance and modifications in addition to the driver’s contextual information. Insurance groups are also an important factor in the cost of any premium, with the groups acting slightly differently for motorbikes. Bikes in the UK are generally classified between groups three and 17, with the higher the group number resulting in the most expensive models to insure.
Is multi-vehicle coverage available?
These types of multi-vehicle coverage were created to provide drivers with the convenience of having multiple vehicles under one policy. Whether this insurance extends to covering different types of vehicles, from cars and bikes, to bikes and vans is another field entirely. They do however exist but are not as commonplace as policies which aim to cover the same type of vehicles.
Typically, there are two ways in which multi-vehicle insurance can be found. The first is through insurance brokers or comparison websites. Those who offer multi-vehicle coverage will get into contact with a variety of different insurance companies which are best suited for each vehicle type, and will then place each policy for each different type of vehicle under one single insurance premium. The policyholder comes away with one policy for their different vehicles. The second way to gain this type of insurance is directly through a specialist insurance company; insurers who are tailored in providing single insurance policies for vehicles of different types.
Despite the fact that some insurers will go as far as insuring motorhomes, horseboxes and some other commercial vehicles under their multi-vehicle policies, the bulk of what the policy actually covers is very much the same as any other. This takes the form of three types of coverage:
- Third party, fire and theft
- Third party only
The benefit of having a single renewal date and one set of documents makes multi-vehicle coverage an increasingly popular insurance type. However, due to the fact that multi-vehicle insurance may require an insurance broker as the middle man, it is incredibly important that you do not fall victim to what is dubbed ‘ghost broking’. Ghost broking involves fraudulent companies either selling worthless policies at high prices, or applying to genuine insurance companies on behalf of customers, but changing personal details to lower premiums. A few tips to avoid being defrauded include not paying your insurance premium to companies who do not provide insurance, and not paying this premium into a personal bank account.