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• What is multi-car insurance?
• Is multi-car insurance cheaper?
• Who can get a multi-car insurance policy?
• How many cars can you insure with multi-car insurance?
• What are some pros and cons of multi-vehicle car insurance?
• What are some ways to reduce premiums other than multi-car insurance?
• Can I compare multi-car policies with iSelect?

Long story short

Multi-car insurance lets you cover multiple vehicles under one policy

You could insure two or more cars together, as long as the cars and the drivers use one address.

Multi-car discounts may apply, but savings aren’t guaranteed

Not many insurers offer multi-car policies, and premiums can still depend on the cars, drivers and overall risk profile.

A multi-car policy can help simplify your insurance with one bill and renewal date

That said, such policies are hard to find and can come with a fair share of downsides.

What is multi-car insurance?

Multi-car insurance allows you to insure two or more vehicles under a single policy. Under a multi-car insurance policy, each vehicle is assessed for risk individually, and you may be able to choose different levels of cover for each car. The advantage of multi-car insurance is that you receive only one bill and one renewal date, making the bills and paperwork easier to manage. In some cases, getting multi-car insurance could even unlock discounts on your premium.

iSelect doesn’t compare multi-car insurance policies, but we can help you try to find a better deal on other types of cover, including third-party property and third-party property, fire and theft, which mainly cover third-party property damage, or comprehensive car insurance, which covers your own car as well as third-party property damage, regardless of who’s at fault.

Is multi-car insurance cheaper?

Multi-car insurance can come with premium discounts. But before you get your hopes up for cheaper car insurance, you’d have to find an insurance provider that offers multi-car insurance – that’s easier said than done, as not many do. And even if you manage to find one, it’s not a guarantee that a multi-car insurance policy will work out cheaper. That’s because car insurance costs are affected by other factors such as the type of car and how much you drive, as well as the driver’s age, gender and driving history.

So instead of hunting for a multi-car policy, you could be better off keeping your options open by comparing individual policies for each of your household’s cars from multiple insurers and going with ones that work out cheaper as a whole.

Helpful tip

Multi-car policies aren’t the only car insurance products that could come with premium discounts. You could be paying a lower premium by getting a pay as you drive policy for a car that you don’t drive that much – like the backup car or the one you use just for errands. Just be mindful not to drive the vehicle more than the kilometre limit specified by the insurer, as this could involve extra charges.

Adrian Bennett

General Manager for General Insurance

Who can get a multi-car insurance policy?

A multi-vehicle car insurance policy is generally available to drivers and cars that share the same address. That means multi-car insurance could suit couples, families or individuals who own and drive 2 or more cars registered under the same address.

More specifically, multi-vehicle car insurance may be useful for:

• couples or families who have more than one vehicle
• individuals who have more than one car
• parents who pay to insure their adult children’s car.

Keep in mind that if parents want to pay to cover their adult children’s car through a multi-car policy, the children will still need to live with their parents at the same residential address.

To check your eligibility for multi-car cover, you can read the Product Disclosure Statement or get in touch with the insurer directly.

How many cars can you insure with multi-car insurance?

Generally, you can insure 2 to 5 cars under a multi-car insurance policy, but the vehicle limit can vary by insurer. Before you commit to anything, it’s a good idea to speak to the insurance company you have in mind, as some insurers may not offer multi-car insurance. It also helps to review policy documents, keeping an eye out for general exclusions and conditions of cover.

What are some pros and cons of multi-vehicle car insurance?

A multi-vehicle policy can reduce paperwork and make things easier to manage. It can let you choose different cover levels and excess amounts for each car and, under some circumstances, also help you save on car insurance costs. That said, multi-vehicle policies are hard to find and insuring multiple cars on one policy means paying one big bill all at once. It could also be a bit of a hassle to make changes like removing a car or driver, which may affect your policy and price, as can a policyholder with a higher risk level.

Pros

A multi-car insurance policy could offer convenience benefits like, less paperwork, lower premiums and flexibility with tailoring cover for each car.

• Less life admin: A multi-vehicle car insurance policy usually means less paperwork, because you only have to deal with one car insurance policy rather than multiple.
• Lower costs: Your insurance might work out cheaper with a multi-vehicle policy. However, this could depend on the insurer and the drivers, so it’s worth comparing it against single-car policies to see which one’s cheaper.
• Flexibility: Some insurers might let you select the level of cover and the excess amounts for each vehicle. You may also be able to pay your insurance premiums in monthly instalments.

Cons

Multi-car insurance isn’t widely offered in Australia. If you can sign up for a multi-car insurance policy, it’s likely to involve a fair few downsides like huge cash outflow when paying premiums, possible increased costs for high-risk drivers and difficulty adding or removing cars or drivers.

• Rarely offered by insurers: Not many insurers offer to cover multiple vehicles under one policy, that cuts down your options when it comes to comparing car insurance brands.
• Paying a huge bill: Insuring multiple vehicles on a single policy means paying multiple premiums in one go. That could mean a sizeable cash outflow.
• Impact of high-risk drivers: A driver with a higher risk due to their age, gender, driving offences or claims history is likely to inflate premiums more.
• Making policy adjustments: If a person or vehicle needs to be added or removed from the policy, you’ll likely have to inform the insurer, and this might mean rejigging the entire policy and its premium.

What are some ways to reduce premiums other than multi-car insurance?

Even if you aren’t able to find a multi-vehicle policy that suits your budget, you may be able to reduce your premium by being less of a risk to insure. This could mean rethinking how you manage your policy by paying a higher excess and setting driver age restrictions, or taking measures to keep your car safe or getting a policy that costs less if you drive less.

• Limit young drivers: Listing younger drivers on a policy can bump up your premium. You can probably save by restricting drivers to over a certain age.
• Garage your car: A car in a lock-up garage is safer from theft and other damage, and this might attract a lower car insurance premium.
• Get a low-kilometre policy: If you’re driving less, you could be paying less, check out low-kilometre or ‘pay as you drive’ policies.
• Increase your excess: If you’re able to pay a higher excess, your insurer might lower your premium as you’re agreeing to cover more of the insurance claim costs.
• Review your insurance options: Consider whether you really need features like agreed value cover or optional cover such as windscreen excess or roadside assistance, as these can increase premiums.

Can I compare multi-car policies with iSelect?

At iSelect, we don’t currently compare multi-car insurance policies. But we can help you compare other types of policies for each of your cars, such as comprehensive cover, low-kilometre policies or third-party car insurance – so you can maximise your chances of saving on car insurance costs.

You can use iSelect’s online comparison tool to help you compare car insurance quotes from a range of well-known car insurance brands in Australia. If you’re happy with a policy, we can help sign you up in a matter of minutes.