What is second car insurance?

Second car insurance is just another way of saying multi-car insurance.

With multi-car insurance, you insure more than one car in the same household (usually up to five vehicles at the same address). In most cases, you’ll get the same level of cover as you would with single car insurance. The biggest difference is that you’ll likely get a discount on the second car. Often, the more vehicles you add to the policy, the bigger the discount could be.

It’s ideal if you’re a family with more than one car, a couple with two cars, or housemates each with their own car.

How do multi-car insurance policies work?

The main difference between standard single car insurance and multi-car insurance is that the policy is extended to cover multiple vehicles.

To get a multi-car insurance policy, the following conditions usually need to be met:

• All the cars must be registered at the same address
  
  
• The vehicles should be standard passenger cars
  
  
• Liability coverage is essential for all cars on the policy

Sometimes insurers insist that one person owns all the cars, but this isn’t always the case. It depends on the insurer.

Do renewal dates need to match?

This is one of the most convenient things about multi-car policies. In most cases, the new multi-car insurance will align the renewal dates for all the vehicles on the policy, which makes the renewal process a lot easier. Many insurers assist you with aligning your renewal dates when you add more cars to the policy.

Should I take out a multi-car policy?

A multi-car policy could be ideal for you if: 

• You have a family with multiple cars: Families with parents that drive as well as driving-age children can benefit from this kind of insurance policy. Both in terms of cost and ease of renewal.
  
  
• You live with a partner: If you’re a couple and you live together, insuring both your cars under the same policy can be convenient and cost-effective.
  
  
• You live in a house-share with multiple vehicles: Whether you’re roommates or friends, if you each drive you could benefit from a multi-car insurance policy.
  
  
• You own multiple cars: If you own more than one car – or you’re a collector of specialist vehicles – a multi-car policy could be right for you.
  
  

Can I reduce my premium with a no claims discount?

You usually can’t use a no claim discount on multiple cars. Even if you have a multi-car policy, each car on the policy has its own bonus which can’t be transferred to other cars.

This means that if you claim on one vehicle, it shouldn’t affect the no claims bonuses you have on the other cars.

What’s the cheapest way to insure a second car?

In a lot of cases, taking out a multi-car insurance policy might be the cheapest way of insuring a second car. This is down to the discounts offered by insurers when you add another car to your policy.

But it’s not always the cheapest option. Sometimes, multi-car can be more expensive when:

• Your household includes a young or high-risk driver: Adding a young driver to a multi-car policy could increase the overall premium. In this case, it might be better to take out a separate policy for the young driver.
  
  
• One car falls into a higher insurance group than the other: Cars in higher insurance groups typically cost more to insure due to higher repair costs and risks. If one car is in a high insurance group, it could push up the price across all the cars.
  
  
• One driver has a criminal conviction or has been involved in accidents: Their driving history could increase the cost of the policy for all the other drivers.
  
  
• One car is a classic or vintage car: Classic cars have unique maintenance needs and are valued differently. It often makes sense to get specialised insurance in place.

Asda Money doesn’t yet offer a comparison service for multi-car insurance, but we’re a great place to compare separate car insurance policies.