RateCity.com.au
  1. Home
  2. Car Insurance
  3. Articles
  4. Is it worth getting a multi-car insurance policy?

Is it worth getting a multi-car insurance policy? | RateCity

Jodie Humphries avatar
Jodie Humphries
- 3 min read
Is it worth getting a multi-car insurance policy? | RateCity

Like many Australian families, you may have more than one car in your household and find it challenging to manage the paperwork for all of them. You may be looking for something more convenient and thinking of consulting an insurer that offers multi-car insurance. 

This option allows you to combine the insurance for all the cars in your household under one broad framework. However, you need to meet some criteria before you apply.

With a multi-car insurance policy, you can save both time and paperwork. Ensure that you have a detailed discussion regarding the policy. By making a multi-car insurance quote comparison, you can identify a policy that suits your needs.

Benefits of multi-car insurance

  • The policy can be convenient if you have children and want to provide economic support. Car insurance premiums for young adults up to 25 years of age are slightly higher than for those in the 26-69 age range. Young drivers are inexperienced, and insurers tend to feel that this increases the chance of an accident. So it may be preferable to get a family car insurance package. If you have separate cars or vans for work, daily commuting, and recreation, it may be better to arrange the paperwork under multi-vehicle insurance, including car and van.

  • Even if you insure two cars under one policy, each car receives different treatment. Therefore even if one car is involved in an accident, it will not affect the driving record of the other vehicle. If you have no claim bonus for one of the cars, it will remain intact.

  • As it is a single policy, you do not have to remember different renewal dates. You may renew the entire scheme at once. In most cases, you will be able to add more eligible cars up to a limit of five. It’s best to check with multi-policy insurance companies to clarify the details.
alert-tip
Tip

It’s also important to remember that while you’ll only have the one insurance bill to pay with multi-car insurance, its cost could be a significant one to factor into your budget. This could be especially true if your premiums are combined with those of other drivers, who an insurer may consider a bigger risk. Also, if the policy covers multiple owners, it could be tricky if one owner chooses to exit from your multi-car insurance and take out their own separate policy.

Can you get discounts on a group car insurance policy?

Yes, there’s a good chance you can get discounts. Many insurance providers offer discounts when you are insuring more than one vehicle, and you can compare rates before applying. In most cases, you will get a discount of between 5 and 15 per cent, but you may compare before finalising. There are other discounts you can access, so remember to speak to your insurer in detail.

You may be able to take advantage of no-claim bonuses. Suppose you are careful on the road and have a good driving record. You will not need to make claims. That improves your chances of getting higher discount rates. Also, you may get a better discount rate if you take out travel or home insurance with the same insurer. Often insurers hold onto loyal customers with more than one policy by giving them better discount rates. If you renew the same policy for many years or install safety features in your car, you may be eligible for additional discounts. 

ratecity-newsletter

Subscribe to our newsletter

Compare car insurance

Product database updated 21 Jul, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Promoted car insurance

Youi Pty Ltd

Comprehensive

  • New car replacement
  • Flexible excess
  • Roadside assistance

Agreed or market value

Either

Roadside assistance

Standard

AAI Limited T/AS AAMI

Comprehensive

  • New car replacement
  • Flexible excess
  • Roadside assistance

Agreed or market value

Either

Roadside assistance

Optional

AHM Health Insurance

Comprehensive

  • New car replacement
  • Flexible excess
  • Roadside assistance

Agreed or market value

Either

Roadside assistance

Optional

Allianz Australia Insurance Ltd

Comprehensive

  • New car replacement
  • Flexible excess

Agreed or market value

Agreed

Roadside assistance

Not available

product data updated on

Product data updated on 21 Jul 2024