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Motor Floater Policy: Single Insurance for Multiple Vehicles

Team AckoJan 17, 2024

Motor Vehicles (two-wheelers/four-wheelers) have become an integral part of the lifestyle, and almost everyone owns one or more than one vehicle. Whether it’s a car or a motorcycle, an insurance policy is a must to ply on roads. Now, if you own multiple vehicles, purchasing insurance becomes a hassle as you have to manage several insurance policies. What if you could buy one insurance policy which covers all your vehicles? Yes, you can! Such an insurance plan is called Multi Vehicle Policy. Read on for all the information about the multi-car insurance policy.



What is Motor Floater Policy?

A Motor Floater Policy is nothing but a single motor insurance plan which covers multiple vehicles. This type of motor floater insurance policy covers all private vehicles (cars/two-wheelers) registered under a single owner. The multi-vehicle policy is a sum insured based coverage plan, and up to five vehicles are covered under this plan. The motor floater policy eliminates the inconvenience of paying multiple premiums and keeping track of renewal dates of multiple motor insurance policies. A floater motor insurance (or) combined motor insurance will also allow you to choose between standalone own-damage cover and comprehensive cover, The comprehensive cover also provides coverage against third-party liability.

Sum Insured of Multi Car Insurance Policy:

The vehicle with the highest IDV (Insured Declared Value) will be the Primary Vehicle in a multi-car policy quote. Similarly, the highest IDV will be the sum insured amount of the motor floater policy. The rest of the vehicles covered under this plan will be considered as Secondary Vehicles.

Scope of Motor Floater Policy Coverage (Inclusions):

The Motor Floater insurance policy will provide the following coverages:

Own Damage Cover

The multi-vehicle policy will cover damages to the vehicle/vehicle accessory under the following circumstances:

  • Damages to the vehicle due to an accident.

  • Damages to the vehicle due to fire or electrical components’ failure.

  • Damages to the vehicle due to improper handling during transit (road/rail/air).

  • Damages to the vehicle due to natural disasters such as flood, earthquake, cyclone, etc.

  • Damages to the vehicle due to man-made calamities such as riots, theft etc.

Comprehensive Cover (Own damage with Third-Party cover):

The comprehensive cover will provide coverage against own damages and damages to third-party property or life. Similar to a comprehensive car insurance plan, the comprehensive coverage of a floater motor policy will cover injuries/accidental death of the third-party or damages to the third-party property.

No Claim Bonus:

If you do not make any claims during the tenure of the multi-vehicle policy, the No Claim Bonus (NCB) will be applied to the premium during the renewal of insurance. The No Claim Bonus is also applicable if you change the insurance company. The benefit of NCB can also be extended to the vehicle, which is covered for a short period.

What is Excluded in Motor Floater Policy?

Below are the exclusions (not covered) of the Motor Floater insurance policy:

  • Repair or replacement of wear and tear components of the vehicle.

  • Depreciation cost of the vehicle.

  • Damages to the vehicle due to breakdown (mechanical/electrical).

  • Driving under the influence of alcohol/intoxicant substances.

  • Driving without a valid driving licence.

  • Reckless driving/improper handling of the vehicle.

Also, read: Vehicle Scrappage Policy in India

Combined Motor Insurance Policy Cancellation:

The Motor Floater insurance policy will be cancelled under the following circumstances:

Total Loss/Theft of Insured Vehicle/Vehicles

  • The own damage cover of all the vehicles will be cancelled if the Primary Vehicle suffers a total loss or is stolen.

  • If the Secondary Vehicle suffers a total loss or gets stolen, that particular vehicle will be removed from the floater insurance policy.

  • If all the vehicles covered under the multi-vehicle insurance plan suffer a total loss in a single incident, then the policy will be cancelled.

Transfer of Ownership

  • The transfer of ownership will be acknowledged by the insurance company upon a request from the new owner of the vehicle, and with the consent of the previous owner.

  • If a single vehicle is transferred to a new owner, then that vehicle will be removed from the floater policy coverage, and the premium will be refunded. Also, the transferee has to purchase a fresh insurance policy. 

  • The Motor Floater policy will allow the transfer of all vehicles if the vehicles are transferred to a single owner/entity.

Double Insurance

If an individual vehicle already has an insurance policy, then such vehicle’s coverage will be cancelled, and the insurance company will make a refund.

Benefits of Motor Floater Insurance Policy:

Below are the benefits of Motor Floater Insurance policy:

  • Hassle-free Purchase: A floater (or) combined motor insurance will save a lot of time as you need not purchase multiple insurances for your vehicles. The multi-vehicle policy will also reduce documentation, and you need not break your head on remembering the renewal dates of several policies.

  • Usage-Based Premium Calculation: The motor floater policy, as a product, is in an evolving phase, and we can expect several new features to be introduced by insurance companies. One such feature is the usage-based premium calculation. Yes, the premium will be calculated based on the usage of the vehicles, and the distance covered by the vehicles will be the main criteria. Apart from that, driver behaviour will also come into play while calculating the premium. If you drive safely and follow traffic rules, the premium will be less, and if it’s the opposite, the premium will be high.

  • Ease of Change of Policy Details: In a multi-vehicle policy, changing the details of the insurance plan is very easy as it can be done in one go, while it would be a cumbersome process to change details of individual policies.

  • Flexibility: In a motor floater insurance policy, the customer has the flexibility to add or delete vehicles as the entire process can be completed via the smartphone app. The user can also switch on/off the protection for a particular vehicle as per the requirement. However, there will be 24×7 coverage against theft or damage to the vehicle due to fire.

  • Simplified Documentation: If you purchase individual insurance policies, the paperwork becomes a big headache with multiple documents. But with the multi-vehicle floater policy, there is minimal paperwork, and the documentation is simple and straightforward.

  • Better Pricing: One of the main advantages of purchasing a motor floater policy is discounted pricing. Usually, when you insure multiple vehicles under the same policy, the insurance company will give you a handsome discount for a long-term association with the customer.

Drawbacks of Motor Floater Insurance Policy:

Below are the disadvantages of multi-vehicle insurance policy:

  • High Premium Amount: In a motor floater policy, there is only one renewal date, and it is easy to remember. But on the flip side, the premium for a multi-vehicle insurance policy is high when compared to an individual motor insurance policy. So, if you are used to splitting the premium payments of different policies, then the large premium of a multi-vehicle insurance plan can be a problem.

  • Driver-Based Risk Assessment: In a multi-vehicle policy, driver behaviour is also considered when calculating the premium. So, if a driver falls under the high-risk category, then the premium will be high. So, it is important to consider driver behaviour before purchasing the insurance policy.

Explore Acko Insurance Policy Online & its Benefits:

Acko General Insurance provides car insurance online and offers paperless claim settlements. You can compare different car insurance plans, and Acko will provide you with the optimum price for the policy you choose. Below are the benefits of Acko car insurance:

Paperless Insurance Purchase/Claim

Acko offers a paperless experience when you purchase an insurance policy. Similarly, the claim procedure also has zero paperwork, and the entire process can be completed online via the Acko smartphone app/website:

Hassle-Free Claim Settlements

Applying for a claim on Acko is very simple, and it can be done online. You have to just register the claim on the website/app, and Acko will take care of the settlements depending on the nature of the damage. For minor damages, Acko provides instant claim settlements.

Expert Guidance

You will get unbiased and expert advice on car insurance at Acko. The team of trained professionals will assist you in purchasing or making a claim. Efficient customer support also makes it easy for you to make a wise decision while buying an insurance policy.

Also, read: How To Maximise Your Car Insurance Policy Cover?

Disclaimer: Motor Floater Policy is subject to availability in India.

Frequently Asked Questions:

By now, you might be well aware of how the motor floater policy works, and its advantages and disadvantages. Still, if you have any doubts, refer to the below common queries related to multi-vehicle policy:

I own three cars. How can I insure all three cars under a single policy?


You can insure all three cars under a single policy by purchasing a Motor Floater car insurance plan.

I have two cars, but only one driver. Is it possible to insure both the cars for one driver?


Yes, in a motor floater policy, you can name the main driver of the car, and the insurance company will mention the same in the policy. But note that the multi-vehicle policy premium depends on the driving style and history of the driver.

I have purchased a multi-vehicle insurance policy. Can I add another vehicle in the midterm of the policy?


Yes, you can add a new vehicle to the existing motor floater policy, and the coverage will be extended to the newly added car/bike.

Will my car insurance costs be reduced if I opt for Motor Floater policy?


Yes, you can significantly reduce the car insurance costs if you purchase a motor floater policy. The premium of a multi-vehicle policy will be calculated based on the usage of the vehicles, and you can easily turn on/off the coverage when you don’t need it. So, the overall cost of insurance will be reduced.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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