Last Updated on 09/06/2021 by Deepak Singla
Multi-car insurance does sound like a great option if you have more than one vehicles. It becomes even more desirable if you have a family or belong to a group where more than one cars are registered at the same address. With bundle insurance, you can purchase coverage for 2 to 5 cars. The best part is that all of these cars do not have to be registered in the same person’s name; also, they don’t have to be driven by the same driver.
All these factors do make bundle car insurance a delicious deal, doesn’t it? Well, some might say that the benefits of group-car insurance are no different than those offered by single car insurance. But we like multi-car insurance because of the ease of getting insurance for multiple cars in one go, not going through the hassle of getting paperwork done again and again, and paying a premium for all vehicles together. Frankly speaking, who has got so much of time and energy to invest in a simple task of many car insurances? So we are all up for it.
That being said, here comes the one important question: why do we need an insurance policy for cars in the first place? Hmm… Clearly we need a coverage plan for the purpose of safety and security. A car insurance plan is an investment which we make to protect ourselves financially. If at any time, the vehicle runs into a problem or goes through a mishap, we want someone to have our back financially, and an insurance plan is a key to that. An ideal insurance policy for vehicles is the one which comes at less price but offers maximum coverage.
But, how much does it cost if we get a multi-car insurance instead of separate car insurances for multiple cars? Does it benefit us monetarily if we opt for bundle car insurance? If yes, what are the factors which contribute to cheap multi-car insurance? More importantly, which aspects raise its premium?
Number of Cars:
Discounts are one of the best incentives for multi-car insurance. Insurance companies offer up to 25% discount on purchasing multi-car insurance. They aim to attract people with great discount offers and to bring more and more clients. They also encourage customers to bring more cars for coverage to the same insurance company instead of taking them to separate insurance companies.
You can get a huge discount based on the number of vehicles you bundle for insurance. Yes, you are right! The more, the merrier. The more number of vehicles you cluster for protection under multi-car insurance, the mightiest discount you will get. There, you have reduced the cost of your insurance up to 25%.
High-risk drivers are those who have a high record of getting into accidents or who violate traffic rules frequently. When we talk about the cost of multi-car insurance, we cannot leave this factor out of the discussion. Insurance companies dig into details of the record of drivers. If one of the drivers of the cars is the high-risk driver, mostly insurance companies increase the amount of premium. Therefore, the cost of purchasing multi-car insurance increases. In such cases, the discount offered on bundle car insurance also reduces. Because of the driving record of one person, insurance companies do not provide full coverage plan for all the vehicles in bundle car insurance.
The cost of bundle car insurance depends a lot on the state of cars which are there for registration. If the vehicles are not in good health or require maintenance on a frequent basis, the insurance company will not offer their best deal on discount. As a matter of fact, the insurance company might not provide any kind of cut, and in some cases, they might raise the amount of premium for coverage. If your bundle comprises even one such car, that is quite sufficient to act like a deal-breaker. It is because of the fact that insurance companies do not want to cover for those cars which are evidently faulty and clearly not in good condition.
Type of vehicle:
Some insurance companies offer a discount only for standard passenger vehicles. That means that the discounted insurance plan will cover just normal household cars. The cost of coverage increases if the bundle of vehicles comprises of automobiles which are commercial. It is due to the fact that most of the insurance companies do not offer any kind of discount on insurance for commercial vehicles.
With a little research, you can find such an insurance company which offers a discount for mixed category vehicles as well. Like, if you add a motorcycle in the bundle of cars, you can use that for claiming discount. Also, that would increase the number of vehicles in bundle, hence offering you more cut in premium payment.
If you have a car in your bundle which you don’t use frequently, or which has low mileage because of lesser usage; you must communicate this to your insurance provider company. When you don’t take out a car regularly or frequently, that reduces the cost of insurance because it is a secondary car and you are not driving the car so often. The lesser the number of miles you put on your car, the less likely you will make a claim. However, you must add this car to an insurance plan with your frequently used car so that you can avail the multi-car insurance discount.
You don’t take your classic or vintage cars on roads so frequently, right? They are with you because you have a knack for vintage stuff. But, if you put your vintage car in a multi-car insurance group, you can get a significant discount. Car insurance companies know that people don’t use such cars on a frequent basis. So, because the lesser they are used, the lower risk they are exposed to. Also, insurance companies know that such cars are driven with the utmost carefulness and vigilance.
Considering all these factors, coverage companies lower their premium cost even more. Now, if you add your classic car to the collection of cars which are to be insured, you can get fantastic discount on the insurance plan.