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Can I Have Two Auto Insurance Policies?

12 minute read Published on Jul 18, 2022 | Last updated Jul 29, 2022 by BrokerLink Communications

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Can you purchase two auto insurance policies? Every province and territory in Canada requires its drivers to purchase car insurance. This means that you can’t get behind the wheel without a valid auto insurance policy.

The purpose of car insurance is to protect you from collisions, bodily injury, and property damage on the road. So while you might think that two auto insurance policies mean twice the coverage, this may not be the case.

Car insurance is one area where two may not be better than one. Keep reading to learn more about whether you can legally purchase more than one auto insurance policy in Canada and the pros and cons of doing so.

Can you legally purchase two auto insurance policies in Canada?

It is perfectly legal to buy two car insurance policies for the same vehicle. That said, your insurance company will not insure the same car twice. Therefore, if you wanted to purchase a second auto insurance policy, you would have to buy it from a different provider. And of course, you would have to pay for both policies separately.

Keep in mind that although purchasing two car insurance policies is legal in Canada, filing the same claim with both companies is not. So you should never purchase two policies in the hopes of receiving a payout from both insurance companies should something go wrong.

If you attempted to do this, you could be accused of insurance fraud, which could result in heavy fines and the cancellation of your policy.

Generally speaking, most people do not purchase two insurance policies for the same car. The exception to this is if you purchase a second policy to cover a specialty vehicle, like a classic car. In addition, sometimes a driver will forget they already have an active policy and accidentally purchase a new one.

Can you insure the same vehicle twice?

Yes, you can technically buy two car insurance policies for the same vehicle, but it is typically not recommended. Insuring a vehicle twice, while legal, may violate the policies of one or both insurance providers.

In addition, if one of your insurance providers finds out that you hold another policy on the same car, that provider may ask the other provider to pay future claims.

This could result in serious problems, such as your claim payments being delayed or not being paid by either provider. To avoid the hassle, confusion, and potential violation of policy terms, experts advise against purchasing two insurance policies for one vehicle.

Can you purchase two insurance policies on two different vehicles?

Yes, you can purchase two insurance policies on two different vehicles, one for each vehicle. In fact, if you own more than one vehicle, you may choose to do this. That said, purchasing a separate insurance policy for each car is often more expensive than purchasing multi car insurance, which is where you insure multiple cars under the same policy. However, there might be certain reasons why you don’t wish or cannot do this.

For example, if one of your vehicles is a classic car or if the driver of one of the vehicles is a young or high-risk driver, you may wish to keep the policies separate. Classic car insurance is typically cheaper than standard auto insurance because the cars are driven far less frequently, which means purchasing a separate policy might actually save you money.

Meanwhile, adding a vehicle driven by a high-risk driver to your policy can increase your insurance premium. Therefore, you might be better off purchasing a separate policy for a car driven by a young or high-risk driver.

Can you have two car insurance policies within the same household?

Yes, you can certainly have two car insurance policies within the same household, and there are many reasons why it might be advantageous to do this. As mentioned above, multi-car insurance might not be the best option depending on the types of vehicles and drivers in your home.

For example, if you own a classic or vintage car or a member of your household is a young driver that would drive up your insurance premium, purchasing two separate policies might be the smartest choice.

If you aren’t sure whether to buy one or two car insurance policies for your household, contact BrokerLink. We can obtain quotes on your behalf and help you find the best auto insurance coverage at the lowest rate.

Can my partner and I have two separate car insurance policies?

If you live with your partner or significant other, you might be wondering whether they should be added to your auto insurance policy or whether you should each purchase your own.

If they are a member of your household and they drive your vehicle, your insurance company will likely request that they be listed on your policy. Since adding a driver to your car insurance will increase your rates, being insured under the same car insurance policy is typically the most cost-effective option for couples.

It might even make you eligible for a multi-car discount if you each have your own vehicle.

However, depending on your unique circumstances, there might be a couple of reasons to keep your policies separate, especially if you do not live together. If you or your partner have a poor driving record or low credit score, adding yourself or your partner to the other’s policy may increase your car insurance rates.

A second reason to have two separate auto insurance policies is if one of you drives an expensive, luxury vehicle. If this is the case, adding your significant other to your plan could raise your premium.

Permissive use clauses

Even if you do not live with your significant other, they may already be covered under an auto insurance company’s “permissive use” clause.

A permissive use clause allows drivers who do not live in your household to operate your vehicle with your permission. Insurance companies have their own unique permissive use clauses, but significant others are typically covered even when they don’t with you.

That said, if your significant other is not presently insured by another auto insurance provider, they may not be covered under the permissive use clause of your insurance policy. In addition, if your significant other frequently drives your vehicle, they should be formally added to your policy.

The disadvantages of two car insurance policies

Experts typically advise against purchasing two car insurance policies for the same vehicle. One of the main reasons for this is that it simply isn’t cost-effective. When you purchase two policies, you will have to pay two separate premiums for no added benefit. It also unnecessarily overcomplicates the claims process, a process that may be confusing, to begin with.

A few other disadvantages of purchasing two auto insurance policies are as follows:

  • If you need to file a claim, your two insurance companies will need to coordinate and agree with each other about which will cover what part of the claim. This process can be complicated and lengthy, delaying how long it takes for you to receive a settlement.
  • The cost of both your insurance policies will rise after a claim is filed, even if you only file with one insurance company.
  • A claim could result in your losing your good driver discount on both policies if applicable.
  • Each insurance policy may require you to add all drivers and vehicles in your household to your policy. This can significantly increase the cost of car insurance, especially if you live with a partner and could have otherwise been insured together under one policy.
  • Two car insurance policies do not mean double the coverage. If you want more coverage with your policy, increase the coverage limit or add optional coverage like collision or comprehensive coverage.

Reasons to consider dual car insurance policies

While several disadvantages may come with purchasing two car insurance policies, there might be certain situations where it makes sense.

For example, if you use the same vehicle for both personal use and business, purchasing a personal auto insurance plan and a commercial auto insurance plan might be necessary.

Further, if you own a classic car or an expensive luxury car, you might have specific coverage needs. In this instance, it may make financial sense to purchase a separate policy for your vehicle.

Similarly, if you and your partner drive the same car but one of you has a poor driving record and has been deemed high risk, it might be most cost-effective for you to purchase your own policy rather than bundling them together.

Read your insurance policy carefully to understand its terms. You can also contact BrokerLink for an unbiased, professional opinion on whether two car insurance policies are right for you.

Commercial auto insurance

One of the reasons purchasing dual car insurance policies might be worthwhile is if you use your car for business.

Personal auto insurance plans only cover you while you’re driving your vehicle for personal use. This may include running errands or commuting to and from work. Anything that isn’t business-related.

However, the moment you use your vehicle for business purposes, your coverage will likely go away. Most personal car insurance policies exclude business use. So if you were to get into an accident while driving for work, your insurance company is likely to reject your claim.

Therefore, the only way to protect yourself at all times while driving is with two auto insurance policies: one personal auto insurance policy and one commercial auto insurance policy. Commercial coverage typically has higher liability limits than personal auto insurance.

Specifically, it can cover vehicles that are used to:

  • Transport goods or equipment
  • Drive clients, customers, or employees
  • Perform a service that you’re paid to do
  • Charge passengers a fee to ride in your vehicle
  • Charge people a fee to transport goods in your vehicle
  • Haul heavy, work-related loads
  • Tow a trailer used for business

One of the benefits of commercial auto insurance, beyond the necessary protection it provides, is that it typically covers any employees you permit to drive your vehicle. Under your commercial auto insurance policy, your insurance provider may cover the cost of an accident when an employee is driving, even if the vehicle was being driven for personal reasons.

Ultimately, if you use your vehicle for a mix of business and personal reasons, you may need to buy two insurance policies. In some cases, your personal auto insurance policy might include limited coverage for business use, but you will need to check with your insurance company to find out exactly what is and isn’t covered.

A broker can also review your policy and offer their professional opinion.

Why purchase multi-car insurance instead of two car insurance policies?

Purchasing one policy that covers all the drivers and vehicles in your household usually makes more financial sense than purchasing two separate policies. Why? Doing so allows each person in your household to benefit from a certain level of customized coverage while allowing you to take advantage of the discounts that bundling car insurance policies makes you eligible for.

The only requirement with multi-car insurance is that you purchase enough coverage so your policy is valid in the province or territory where you reside. Purchasing a multi-car insurance policy can save you as much as 20%.

Beyond their affordability, multi-car insurance policies are also convenient, as you will only have one insurance bill and renewal date to keep track of.

It’s worth noting that multi-car insurance is an option for families of all sizes. Whether it’s just you and your significant other or you have several children or other family members living at your home, multi car insurance might be a great choice.

Though it mostly covers family members who live in the same household, it may even cover those who live at different addresses (for example, if your 18-year-old child is living in a college dorm for part of the year).

BrokerLink’s expert insurance advisors have put together a list of advantages that come with buying multi-car insurance below.

The pros of multi car insurance

  • Insuring multiple cars together can save you as much as 20% on your auto insurance policy.
  • Insuring all drivers and vehicles together under one policy is extremely convenient. One policy means you can deal with the same insurance provider for all claims, and you will only have to remember one renewal date and one set of payment dates.
  • Some multi-car insurance policies cover cars and drivers who are away from home for part of the year. This can be a significant advantage if one of your children is going to university and will be living away from home for part of the year.
  • Even though all vehicles will be insured under the same policy, each car retains some of its own unique coverages. For example, you have the option of buying different comprehensive or collision coverage for each of your vehicles. Since these types of coverage tend to be more worthwhile for expensive cars, this is a major pro for families with cars that range in value.

Why work with a car insurance broker?

Working with a trusted insurance broker is one of the smartest decisions you can make as a driver in Canada. When you partner with a broker, you’ll have an experienced car insurance expert at your fingertips, working day and night to find a policy that meets your needs.

Plus, as insurance experts, we can answer any questions you may have, including ones like “can I have two auto insurance policies?” Keep reading to discover a few more reasons why working with an insurance broker may be worthwhile.

Brokers work independently

Insurance brokers in Canada work independently of insurance companies. This means that brokerages like BrokerLink can focus our attention on our customers’ needs. Our insurance advisors put the customer above all else.

We take the time to understand their needs, lifestyle, and budget, so that we can find them the best possible policy. Plus, since we don't work for an insurance company, you can always trust that we are providing you with unbiased, objective car insurance advice.

Brokers do the work for you

Another reason to work with an insurance broker is that they do the work for you. From start to finish, a BrokerLink advisor will be by your side, taking care of everything. We will work tirelessly to obtain quotes, compare coverage options, and unlock discounts on your behalf.

This leaves room for you to sit back, relax, and spend your free time exactly how you want to be spending it.

BrokerLink brokers are car insurance experts

BrokerLink has been in business since 1991, which means we have over 30 years of experience matching Canadian drivers with quality car insurance policies. We are always happy to share our resources and expertise with our customers.

Ask us anything and we’ll get back to you with an answer in no time!

How to buy two car insurance policies in Canada

Whether you wish to purchase one car insurance policy, a multi car policy, or two separate policies (one for your classic car and one for your everyday car), finding the right coverage couldn’t be easier thanks to BrokerLink! Follow the steps below to find competitive and budget-friendly auto insurance policies.

1. Contact an insurance broker

The first step to finding the best auto insurance coverage at a competitive rate is calling an insurance broker. When you contact BrokerLink, we will take the time to understand your needs and budget so that we can match you with a great policy.

2. We shop around for you

Shopping around is necessary to find the best possible insurance policy, but doing so can be tedious and time-consuming. Luckily, when you partner with BrokerLink, your broker will shop around for you. We will contact Canada’s top insurance companies to determine which one has the best car insurance policy for your needs.

3. You get a great rate

The final step to buying car insurance in Canada is getting a great rate. All BrokerLink insurance advisors are licensed insurance experts. This means we know how to unlock discounts and find the best deals. We will present you with a few policy options to choose from and you can pick the one that’s right for you.

Contact BrokerLink to learn more about whether buying two car insurance policies is right for you

Still aren’t sure whether you should purchase one or two car insurance policies? Get in touch with BrokerLink.

We will ask you a few questions about your circumstances and can give you our professional opinion on whether one or two insurance policies are right for you.

You get in touch at your leisure by phone or email. You can also visit us in person at one of BrokerLink’s many locations throughout Canada.

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Alternatively, if you’re ready to purchase car insurance, we invite you to use your online quote tool to request a free car insurance quote. After providing some basic information about yourself, your vehicle, and the type of coverage you require, you will receive an accurate and competitive quote. It’s that simple!

Get an auto insurance quote

Contact BrokerLink to get started today.