UK drivers paying over the odds for multi-car insurance

Nearly a third of UK households with more than one car could be paying as much as 60% over the odds for their motor insurance, new figures reveal.

Three out of ten households* in the UK now have more than one car (rising to almost one in two homes in rural areas), yet drivers who opt for so-called multi-car insurance policies and think they are saving money may actually be paying too much and could cut costs by taking out separate cover for each vehicle.

The number of multi-car households has been growing steadily over the past 30 years. In 2008, 32% of households had access to two or more cars, compared to only 15% in 1980 and 23% in 1990. Households in rural areas are particularly likely to have access to two or more cars: in 2008, the figure was at 47%, compared to 17% in London boroughs.

Research by swiftcover.com compared the price of putting two popular cars on a multi-car policy with the cost of insuring them separately. The insurance company found that multi-car policy users could be paying twice as much as they would for individual insurance cover.

Tina Shortle, marketing director at swiftcover.com, explains: "People are being led to believe that insuring two or more cars on the same policy automatically gives drivers the best deal, but as our research shows, that's not the case.

"Drivers who want to get the lowest possible premiums should always be sure to check all of the available options, as it's clear that using one insurer for both is not necessarily the cheapest option. As the number of families with more than one car grows, it is important for those taking out policies to be aware that separate policies can be cheaper than multi-car deals offered by some insurers."

swiftcover.com recommends that drivers should always compare insurance deals, even if they have more than one car, because premiums for different vehicles can vary wildly between insurers - so you might find that one of your cars is actually more costly if covered by the multi-car insurance provider.

Owning more than one car can make you more flexible, but can also be a financial burden and an unnecessary hassle. Take a look at our top tips below for advice on how to get the most out of a second car:

1. Are you getting the best deal on your insurance? Always compare insurance quotes - just because a certain company is cheap for one car, they may not offer the best deal on all your cars

2. Do you really need more than one car? It may seem obvious, but running more than one car is costing you money in petrol and maintenance - these costs could be avoided by being more flexible or getting a bigger car.

3. Save money if you're only using one car - If times are hard, it may be worth selling one of your vehicles or declaring one of your cars as SORN (Statutory Off Road Notification). Cars declared as SORN are exempt from road tax for the next 12 months.

4. Park safely - Leaving cars parked on the street means they are more likely to have problems from damage or theft, so consider how safe having more than one car will be.

5. Negotiate on maintenance costs - You may be able to negotiate a cheaper deal with your local garage if you take both cars there for a service.

6. Who's the driver - Always make sure you are honest about who the main driver is: if you try and save money by insuring the vehicle in the name of an older driver, for example, but the car is actually driven more often by a younger driver, this is known as fronting and is illegal. Getting caught out could invalidate your insurance and leave you out of pocket when you claim

7. Choose the car that's right for the job - Do you really need two 4x4s? And what about that sports car - is it a luxury? If you do need more than one car in the family, make sure you choose the cars that are the most efficient and suitable for the job

8. Share and share-a-like - Even if you have more than one car, it still makes sense to share vehicles where possible. Not only does it keep petrol costs down, it means you can insure a second vehicle at lower mileage and save money