How do you insure two cars.........

....without paying through the nose?

They won't let you use your ncb on the second car.

Does anyone here know an insurance company that deals with this in a reasonable and cost effective manner.

The second car is only used for towing, will probably do less than 1000 miles a year, and is worth less than a grand, but I'm getting quotes approaching £700 for third party cover

 

Try Direct Line or your current insurer. If you're old enough I believe Saga are very cheap. I've got a fair few years left before I qualify though

 

Some insurers will match your no-claims bonus on a second policy, I think Zurich do. Probably best to check with a local broker and see if they can help.

 

Yep, Zurich do match NCB on second car.

In a case like this it might be worth going through a Broker. They can work wonders on this sort of thing.