The Fixer: Multi-car insurance policies

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Dear Fixer,
My daughter recently passed her driving test and my wife and I have decided to give her a little runaround for her 18th birthday - mainly to avoid her driving our more powerful cars!

I currently have separate insurance policies for my car and my wife's car, but am considering switching to a multi-car policy once my daughter gets her car to take advantage of the discounts on offer.

She is still in full-time education, so I will be paying her insurance this year at least.

Are there any disadvantages to multi-car policies and do I need to wait until I insure my daughter's car to take one out? Thank you in advance for your help.

T Donovan, Derbyshire

Dear Mr Donovan,

Multi-car insurance policies, which can generally be taken out for between two and five cars registered at the same address, work in the same way as standard insurance policies.

In most cases, the 12-month policy generally kicks in on the date that the insurance on the last car in the group is up for renewal, with short-term cover being provided for the other cars in the interim.

The big discounts available on multi-car insurance policies are the reason most people choose cover of this kind. Many insurers offer 10% off for every car you insure on the same policy.

However, the age and experience of the motorists covered by the policy will have a significant impact on the overall cost, as will the type of cars covered.

Given that your daughter has only just passed her test, you may therefore find that a multi-car insurance policy is not the cheapest option for everyone.

Before taking out cover of this kind, it is also sensible to check the terms and conditions of the no-claims discount in case all drivers are affected by one accident.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.
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