The National Travel Survey for 2023 found that a third of households had two or more cars.
As many insurers offer multi-car insurance, we look at how it works, and whether a multi-car discount might be an alternative for your household.
In this article
What is multi-car insurance?
A single multi-car insurance policy usually covers between two and five cars registered at the same address. In some cases you may be able to use your no claims discount on two cars.
Insurers usually offer a discount for each car that is added to the policy. So the more cars you have on the policy, the cheaper it becomes overall.
How does multi-car insurance work?
Multi-car insurance gives you the convenience of dealing with a single insurer and having one set of paperwork.
A linked multi-car policy allows you to choose different levels of cover and excess for each vehicle, and each driver can earn their own no claims discount.
The renewal date is usually the date when the first car was added to the policy, though some insurers might renew each added vehicle individually.
With a 'multiple car policy', however, all the vehicles and drivers have the same cover and the same renewal date.
How does a multi-car discount differ from multi-car insurance?
Multi-car insurance is a single policy that usually covers up to five cars registered at the same address.
Some insurers instead offer a multi-car discount for additional vehicles registered at the address of an existing policyholder. Household members can buy a policy for their car at a discount, or the original policyholder can get a discount when insuring a second car. Each person can choose the level of cover they need for their car, and with individual renewal dates there's no big bill for paying for all the cars at once.
The multi-car discount may continue at renewal for each additional policy so long as they meet the terms and conditions of the offer.
If a car in your home is already insured with us, anyone in the household can benefit from the AA Multi-Car Discount for additional vehicles registered at the same address.
Author: TheAA. Updated 29 April 2025.
