Insuring multiple vehicles: family car insurance policies

Insuring the family vehicles can be an extremely costly experience, especially if there's more than two to cover. Family deals with the same provider can help reduce some of the expense.

There are numerous reputable insurers that offer family deals on insurance. AAMI, Allianz, GIO, SGIO, Western QBE, RAC and RACV are just a few major insurers who offer discounts if you use the same provider for your car insurance needs.

Family car insurance packages: comparison to standard policies

Family deals often come under loyalty bonuses that are offered by insurers; an extra option to reward you for your commitment.

Family car insurance policies are generally restricted to the cars of both parents and one son/daughter. This is negotiable and most major insurers are willing to accommodate your requirements as best they can. The amount of cars eligible for family cover will vary depending on the insurer and the policy chosen.

As a guide for calculating your savings consider the following (quoted prices are industry averages and you should make enquiries to your insurer about the actual cost).

A standard policy will cost around $1650 per annum for under 25s and $240 for older persons. That's a total cost of $3390 per year (including 3 x $500 excess, although under 25s usually have a higher excess).

In comparison, the industry average family package comprising two parents and one son/daughter is $870 per year plus excess, which will increase if you include someone under 25 in the family policy.

Factors that may affect family car insurance deals

• You may be only allowed to include members of the family who live at the same residential address

• Drivers of different age groups and those with different risk profiles will cause a sharp deviation in price from the industry average

• Younger drivers will increase both the premium and excess, but it is often the case that agreeing to pay a higher excess will reduce the premium a little

• The deal is locked in so if one person makes a claim it is liable to affect the no claim bonus of all the individuals. Some insurers do not offer no claim bonuses on family deals

• There are many occasions when individual insurance will work out cheaper than a family deal and you should be mindful of this fact.