Insuring A Second Car: A Quick Guide

A little bit of haggling goes a long way when it comes to second car insurance…comparing providers could net you great savings on your bike insurance and contents insurance too.

Can I use my no claims bonus?

As a general rule, insurance companies like to say no to you using your no claims bonus again when insuring a second car.

However there are exceptions and many insurance companies can ‘bend’ their rules – and will – at the thought of losing your business.

This leaves you with 2 options when you insure your second car:

  1. Work out whether you’d save more buy using your no claims bonus on your first or second car and put your discount towards the most expensive car insurance
  2. Haggle for your second car insurance – compare quotes from other car insurance providers and go back to your current provider with the best quote. If they can’t beat it, take your business elsewhere

Is multi car insurance worth it?

A multi car insurance policy lets you add up to 5 cars to the same car insurance policy.

It’s worth comparing quotes to individual car insurance quotes to see if you can get a cheaper car insurance deal, and it could prove even more worthwhile if there are any more cars registered to your address, eg your partner’s or children’s car(s).

The more cars on the policy, the bigger the discount you could get. However check there aren’t any terms and conditions that will restrict you later, such as:

  • changing a car – you might not all want to change your cars at the same time
  • no claims rules – if one of you has an accident, are the other people’s no claims years affected?

And remember when you renew this type of car insurance policy it’s probably going to leave a big dent in your bank account. If you’re the only one paying for it, see if you can pay monthly.

Pay as you drive car insurance could work out cheaper

Only planning to use your second car occasionally?

Pay as you drive car insurance could work out cheaper than a normal policy. You usually pay a fixed monthly fee and then pay per mile you drive.

Some insurers also have peak and off-peak driving hours so your car insurance becomes cheaper if you drive your second car at certain times of day.

However, if you need to budget for your car insurance payments, be wary of a pay as you drive policy – your payments will vary on a monthly basis.

Key Points

  • If your current insurer won’t let you use your no claims bonus, shop around to get the best car insurance – others might.
  • Consider how often you’ll use your second car – pay per drive car insurance could work out cheaper
  • Got a specialist car? Specialist insurers may have better deals


  1. I have a B class Mercedes 2015 which is used for general use about 6k miles, I also have Volvo V70 2006 which is only used for golf as
    it contains my golf buggy and any other golf equipment, I do no more than 4k a year.
    I am the sole driver for both cars, can they be put on one policy.

    • Hi Norman. Several insurance companies such as Admiral, Aviva and LV (if you are based in the UK) offer multi car insurance policies, which can be cost effective.

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