Owning numerous vehicles may seem like a lot of work when it comes to purchasing insurance and handling the administration side of things. But did you know that it can often also mean you get a reduction from the same insurer?
However, owning multiple vehicles for personal or commercial purposes can often come with a reduction in insurance costs by purchasing in bulk and also putting all the paperwork under one account. So if you own more than one car, bike or van, our guide explains how to purchase insurance for multiple vehicles effectively.
This refers to putting 5 to 10 vehicles under the same policy. Common for family households, it allows a variety of cars to be placed under the same account and a discount is applied for every extra vehicle that is added to the policy, using the idea of economies of scale.
This refers to businesses placing up to 500 vehicles under the same policy and is common for taxi companies, couriers and companies that transport goods. A fleets insurance policy caters to large and scalable businesses that have several employees and very similar vehicles. Putting all vehicles under one policy saves time on administration and bulk discounts are available.
The price of the insurance premium depends largely on the following factors:
It is common for those with fleet insurance to purchase additional cover to protect the passengers and goods that they carry. Other liability claims are usually considered to protect the general public and their employees.
Tax relief is available to those driving company vehicles including:
If your employer does not pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.
If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.
Type of vehicle First 10,000 miles Above 10,000 miles
Cars and vans 45p 25p
Motorcycles 24p 24p
Bikes 20p 20p
The first 10,000 business miles in a tax year can allow drivers to claim a 45p tax relief per mile. See the updated figures here.
Specifically, for multi car insurance policies, the named driver has quite an impact on the cost of the premium. There is the main driver who is the main person on the policy and is assumed to be doing the most mileage out of everyone. The named driver is anyone extra on the policy that they wish to add to drive their vehicles such as spouses, children and other family members.
By having a main driver who is an experienced driver (aged 40 to 60) and has a low claims history, this will have a positive effect on the cost of your policy. This considers that the main name on the account does most of the driving and because they are low risk, this will result a a cheaper premium.
On the contrary, having a young and inexperienced person as the main driver will mean that there is a greater risk of a claim and this will result in a more expensive quote. Motorists must avoid ‘fronting’ which refers to putting an inexperienced or high-risk individual as a named driver when they are actually the main driver of the account. This is considered an illegal way to lower the price of your insurance and can lead to prosecution.
The ‘any driver’ extension can be added or removed from your policy at any point. This allows all the drivers named to be able to use all the vehicles freely under the same account. This is ideal for families that share cars and also for large organisations to be flexible to add new drivers and vehicles such as couriers and taxi drivers. The driver’s level of experience and claims history will be factored into the cost of adding the any driver extension. There may be a small administration fee charged by your insurer for every change or additional driver and vehicle that you add to your policy.