A Multi car insurance policy is a regular car insurance policy that covers more than one vehicle in the household.

The idea is that it benefits the customer on two fronts:

First, by combining all the cars in a single household it cuts down the amount of paperwork and form filling that you have to do in order to insure each car.  This effectively makes the insurance renewal date the same for all your vehicles.

Second, the multicar policy is generally offered as being a cheaper alternative to insuring all your cars separately  Most recently Admiral are marketing their multi car policy through TV advertisements.  Direct Line are also offering discounts for insuring second cars with them.

So can multicar policies really save you money?  It's going to depend on the mix of vehicles in your household and the people driving them.

There is no doubt that it helps make things easier on the paperwork front - now you only have one renewal date to remember and not two, three or four.

The only way to really know if the cost of a multi car insurance policy is cheaper is by getting a number of online quotes for all of your vehicles.  Total up all the cheapest prices and see how it compares with a single multicar quote.