Yep, that's the way... it doesn't even matter if you get things the wrong way around, since the multimeter will simply read a negative voltage!
Most of the time you will use either voltage measurement (as you describe) or continuity measurement. For the latter, you select the lowest ohms (rhymes with 'roams', not with 'bombs'
) range, which often has a 'sound waves' icon to indicate that the multimeter will beep. Touch the probes together to test. Then apply to the item, your two switch terminals for instance, and operate the switch. The multimeter will display a low number, being the number of ohms resistance in the switch. Typically anything over 1 ohm is cause for concern!
Multimeters can also measure current (the 'volume' of electrons flowing, voltage is like the 'pressure').
To measure current, you usually connect the red lead to a different terminal on the multimeter (marked 10A) and then the leads go in SERIES with the circuit. For example, if measuring the current draw from the battery (with the engine switched off), you would disconnect one battery terminal and place one multimeter lead on the terminal, the other on the battery itself. The multimeter then becomes part of the circuit and on the DC A range, it will show you how much current is flowing (should be almost nothing in the engine-off case). If you open a door etc. you would see the current draw. This technique is occasionally useful for discovering the source of repeated flat batteries, if you remove fuses one by one until the current draw disappears, you find the faulty circuit.
One more novel way to measure voltage drop, e.g. at the headlights. With the multimeter set up to measure voltage, put one lead on the battery positive terminal, and the other lead on the headlight bulb pin (grey or green wire). Because neither lead is grounded, the multimeter reads the voltage difference between the two points. This should be as little as possible, but frequently in the case of the Uno you lose up to two volts through the headlight switch and wiring, which may convince you of the merit of fitting relays to the headlights
That two volts diminishes the light output by a frightening 30%. See
http://www.madelectrical.com/electricaltech/brighter-headlights.shtml for a quick summary.
-Alex