If you own more than one car, a multi-car insurance policy might be right for you. Beyond convenience, bundling multiple car insurance policies together may save you money. To learn more about multi-car insurance, including how it works, how much you can save, and the pros and cons of these types of auto insurance policies, keep reading.
What is multi-car insurance?
Multi-car insurance is when you purchase multiple car insurance policies with the same provider. There are two many types of multi-car insurance. The first is linked multi-car insurance, which is where each vehicle has its own policy with unique coverages, benefits, and add-ons.
With linked multi-car insurance, policies can begin and end on different dates. In contrast, you can also insure multiple cars on the same policy. With this type of policy, your renewal dates are the same, coverage, benefits, and add-ons are the exact same.
It is essentially one policy for all of your cars. If you wish to cover multiple cars on one policy but each vehicle in your home currently has its own respective policy, you can set future start dates so that each one will be added to your multi-car policy when its existing policy expires.
Typically, multi-car insurance policies are designed to cover multiple cars at the same address. However, sometimes they may be able to immediately cover family members who live elsewhere, such as an adult child.
Keep in mind that some multi-car insurance policies have a limit on how many cars or drivers they can cover, so be sure to check with an insurance provider or broker to learn more about these rules, especially if you have a large family or many cars.
How does multi-car insurance work?
Multi-car insurance works like standard car insurance. However, there is usually a discount for each vehicle you add to your policy. Therefore, by bundling multiple car insurance policies together, you may save money on car insurance while receiving all the benefits of standard auto insurance.
For example, just like standard auto insurance, there is a wide range of coverage options available to policyholders. Of course, your insurance policy will need to meet the minimum coverage requirements of your province, which typically includes third party liability coverage, uninsured automobile coverage, accident benefits coverage, and direct compensation - property damage coverage.
However, you will also be able to add optional coverages like comprehensive coverage, collision coverage, and accident benefits coverage to your multi-car insurance policy. With some insurance companies, you may even be able to add specialty coverages only available on multi-car policies, such as multi-car breakdown cover.
Multi-car breakdown cover will protect your vehicles in the event they break down on the side of the road. This coverage usually features roadside assistance and local recovery.
It must also be noted that depending on your multi-car insurance policy, some coverages may be shared by all drivers whereas others may only apply to a single vehicle. For example, third-party liability coverage is typically shared by every vehicle and driver on your policy.
However, comprehensive and collision coverage might be unique to each vehicle. This is usually beneficial to the policyholder as it means you wouldn’t have to include the same level of coverage for your expensive, luxury vehicle as you would for your teenage daughter’s 10-year-old used car.
Who can I put on a multi-car insurance policy?
You can share a multi car insurance policy with anyone in your household (in some cases, you might even be able to share with a driver that lives elsewhere in your province, if they are immediate family). This includes your partner, children, other family members, or even roommates.
It’s strongly recommended to list anyone on your policy who drives your vehicle, even if they only drive occasionally. If someone not on your policy drives your vehicle and gets into an accident, it will be far more difficult if not impossible to file a claim with your insurance company and receive money to cover the cost of the damage.
If you aren’t sure whether you can add someone in your household to your multi-car insurance policy, contact BrokerLink. We can explain how multi-car insurance policies work, including how to add someone to your policy, how many people can be added, and who qualifies.
Is multi-car insurance right for you?
If you own multiple vehicles or live in a household with multiple vehicles, purchasing multi-car insurance might be a wise choice. It is particularly well-suited to families who live at the same address. But again, if one family member lives at a different address (for example, your adult son is away at university for part of the year), your policy may still cover their vehicle.
If not all members of your family live at the same address, be sure to ask an insurance broker whether the insurance provider will cover those living at different addresses.
To help you decide whether multi-car insurance is right for you, BrokerLink’s expert insurance advisors have put together a list of pros and cons associated with multi-car insurance.
Check them out below.
The pros of multi-car insurance
- Insuring multiple cars together can save you money on car insurance. You may save as much as 20% on your auto insurance policy with multi car insurance.
- Insuring all drivers and vehicles together is the height of convenience. If they are covered under the same policy, you will only have one policy renewal date to keep track of instead of a renewal date for each respective vehicle. Plus, it can be easier to manage paperwork and file claims with your insurance provider when you have multi car insurance.
- Some insurance companies offer multi car insurance policies that cover cars and drivers who are away from home for part of the year. This can be a major pro if one of your children is in university and is away during the school year.
- Despite all cars being insured under the same policy, each car can retain some of its own unique coverages. For example, you can purchase different comprehensive or collision coverage for one of your vehicles but not for another. Since these types of coverage tend to be more worthwhile for expensive cars, this is a major advantage for households with cars of differing values.
The cons of multi-car insurance
- One of the cons of multi-car insurance is that adding a less-experienced driver (such as a young driver under the age of 25) or a driver with a poor record (one field with driving infractions, tickets, and accidents) may increase the overall cost of the policy. For this reason, we recommend contacting a broker who can help you compare the cost of purchasing individual auto insurance policies for each family member vs. a multi-car insurance policy. Depending on the age and driving records of those you wish to insure, purchasing individual policies can sometimes be the less expensive option.
- If one driver needs to file a claim with the insurance company, it could raise the cost of insurance for other drivers on the policy. This is not always the case with multi-car insurance; it depends on how the policies are linked.
- Like individual auto insurance, multi-car insurance is paid monthly or annually. If the policy renewal dates are synced, this means a large bill to pay yearly. Paying annually tends to be cheaper in the long run, but given the size of the bill, it may not be feasible. Therefore, you may be forced to pay for your multi car insurance policy monthly, which could come with interest.
Free quotes on multi-car insurance
Insurance providers across Canada offer free multi-car insurance quotes. So if you’re wondering how much it will cost to insure multiple cars under one policy, contact an insurance company to obtain a free quote. Better yet, contact a trusted insurance broker. Insurance brokerages like BrokerLink have the resources, knowledge, and expertise to help you decide whether individual auto insurance or multi-car insurance is right for you. Plus, like insurance companies, we offer free quotes on all types of car insurance. Give us a call, visit us in person, or use our online quote tool to request your complimentary multi-car insurance quote today.
How to buy multi-car insurance
Purchasing multi-car insurance is a lot like purchasing a standard car insurance policy. When filling out the application form, you will provide information about all the cars you own and each of their drivers. Be prepared to provide information on who the primary and secondary drivers (if applicable) are for each vehicle, as well as each driver’s name and driver’s license information.
To help you get started, the experts at BrokerLink have put together a step-by-step guide to purchasing multi-car insurance in Canada. Note that when you enlist the help of a reputable broker, buying multi-car insurance can be an entirely stress-free experience.
1. Contact an insurance broker
The first step to finding the best multi-car insurance policy for your household is getting in touch with an insurance broker you can trust, like BrokerLink. BrokerLink’s insurance advisors take the time to learn about your unique needs, lifestyle, and budget so that we can find the best car insurance policy for you and your family.
2. We shop around for you
After you’ve contacted us, your dedicated BrokerLink insurance advisor will get in touch with Canada’s top insurance companies to shop around on your behalf. We will obtain quotes and compare coverage, all in the name of finding you a multi-car insurance policy with the best coverage and a low rate. We will also take the time to gather information about policy terms that matter to you.
For example, if you need multi-car policy insurance that will cover your child’s car when they’re away at college, we will make sure to find a policy that features just that. You can always count on us to put your needs first.
3. You get a great rate
The final step to buying multi-car insurance with BrokerLink is getting a great rate. We know where to look for the best deals and will make sure you take advantage of all relevant discounts. Specifically, we will compare the multi-car discounts offered by different insurance companies to ensure you’re saving as much money as possible.
Is multi-car insurance cheaper?
There is no guarantee that multi-car insurance will be cheaper than individual car insurance, but it certainly can be. For this reason, we always recommend enlisting the help of a broker who can shop around on your behalf and help you compare individual and multi-car insurance quotes to find you the best possible policy for your family.
As mentioned, if you plan on adding a young or high-risk driver to your policy, it might be cheaper to purchase single insurance policies for each car rather than bundling them together. However, the cost of auto insurance depends on several factors beyond age and driving record.
Location, marital status, gender, local laws, the make, model, and year of the vehicle(s), and a driver’s claims history can all impact the cost of multi-car insurance.
Other tips to save money on car insurance
While bundling multiple car insurance policies together is one of our top tips for saving money on car insurance in Canada, it’s not our only tip. In fact, BrokerLink has all kinds of secrets for saving money on auto insurance. Below is a list of tips and tricks, beyond buying multi-car insurance, that will ensure your policy doesn’t break the bank.
Contact your provider about any changes to your driving habits
Did you know that if you don’t drive every day or only drive short distances, you may be eligible for an insurance discount? That’s right, occasional drivers can benefit from less expensive premiums.
So if your driving habits have changed - perhaps you got a new job that’s closer to work or you decided to go back to school and take the bus to school every day - contact your insurance company and let them know of your new driving habits. You could save money on car insurance as a result.
Pay your insurance bills on time
Always pay your insurance bills on time. If you don’t pay your insurance bill, the insurance provider may cancel your policy for non-payment. If this happens, you could be forced to pay higher car insurance premiums for years to come.
Ask about discounts
It never hurts to ask! When purchasing any type of auto insurance, be sure to ask your insurance broker about any discounts that might be available. Beyond multi-car discounts, you could also benefit from loyalty discounts, retiree discounts, alumni discounts, or group discounts.
Only purchase the coverages you need
Auto insurance companies offer a variety of different coverage types to drivers. However, not all coverage types will apply to you. The type of vehicle you drive, your driving habits and driving frequency, and your budget will all impact what coverages you choose to include in your policy.
To avoid overspending on car insurance, consult with an experienced insurance broker who can give you an unbiased opinion on the best coverage options and policy limits for you.
Drive safely and responsibly
Maintaining a stellar driving record is one of the best ways of keeping your premium low. And the only way to do that is by driving safely and responsibly and obeying the rules of the road at all times. Plus, some insurance companies may offer extra savings to those who have completed a defensive driving course.
Increase your deductible
Another way to save money on car insurance is by increasing your deductible. Increasing your deductible is a surefire way to lower your premium, no matter what type of insurance you’re purchasing. Since the average car insurance deductible in Canada is $500, raising your deductible to $1,000 or more could save you money on your auto insurance policy.
That said, increasing your deductible is not a decision that should be made lightly. Doing so has a mix of pros and cons, so we recommend speaking with a BrokerLink insurance advisor to learn more about the possible impacts of this decision.
Choose annual over monthly payments
One quick way to save money on car insurance in Canada is by paying for your policy annually rather than monthly. Monthly or quarterly insurance payments almost always cost more down the road as insurance companies tack on administrative fees or interest for each payment made. If it’s feasible, save time and money by making one payment annually.
Bundle insurance policies
Bundling insurance policies together is another way to get cheap auto insurance. Similar to the principle behind multi-car insurance, which is that buying insurance for multiple cars from the same provider can save you money, buying multiple types of insurance from the same provider can also save you money.
For example, if you purchased home insurance and car insurance from one provider, you might receive a discount of up to 15% on each policy. Other types of insurance you might be able to bundle include business insurance, travel insurance, or leisure vehicle insurance (ATV, boat, etc.).
Install winter tires on your vehicle
Winter in Canada is no joke. As soon as the cold weather, snow, and ice sets in, driving becomes significantly more dangerous. But snow tires mitigate this risk thanks to their superior capabilities in winter weather.
Insurance companies recognize this and may offer discounts to drivers who install snow tires on their vehicles. Therefore, buying winter tires will not only increase your safety but may also save you up to 5% on your car insurance policy.
Purchase an electric vehicle
Buying an eco-friendly vehicle is another of BrokerLink’s money-saving tips. To incentivize drivers to reduce their carbon footprint, some Canadian insurance companies now offer discounts to those who drive hybrid or electric vehicles. Thus, by driving an EV, you could save money at both the gas pump and on auto insurance.
Enroll in driving school
Are you a young driver? Then consider enrolling in driving school if you wish to save money on auto insurance. Insurance companies recognize that formal driving schools produce skilled, safe drivers who are more likely to follow the rules of the road.
Consequently, they offer discounts to young drivers who can prove they completed an approved driving program. Since new drivers often pay the highest premiums, the savings you’ll be eligible for by attending driving school may be worth it.
Get in touch with BrokerLink for a free multi-car insurance policy quote
Contact BrokerLink to learn more about multi-car insurance or to receive a free multi-car insurance policy quote.
Our insurance advisors are always on hand to offer their insight into the pros and cons of multi-car insurance. Plus, we offer free quotes on all types of auto insurance, including multi-car insurance policies.
Simply get in touch with the details of the vehicles and drivers you wish to insure, and we will get back to you with an accurate and competitive quote in no time.
What are you waiting for? Get in touch by phone, email, or in-person and learn more about multi-car insurance today.
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