If you own more than one car, a multi-car policy might be right for you. Beyond convenience, bundling multiple car insurance policies together may save you money. Still unsure if it is the right choice for you? We’ve answered some of the most common questions about multi-car insurance for you below to help you decide.

How does a multi-car policy work?

In general terms, a multi-car insurance policy will have a single liability limit that covers all the vehicles and drivers. The policy will also have a single statutory benefits limit to protect all drivers and passengers. However, each vehicle can maintain its own coverage and limits when it comes to individual coverages. This allows you to put the right amount of coverage for each separate car.

What’s required for getting multi-car insurance policies?

There are only a few requirements to bring all of your auto insurance policies onto one:

  • The owners of the vehicles need to be listed on the policy, not just the drivers.
  • All vehicles must share the same policy term with common effective and expiry dates.
  • Vehicle information: Year, make & model of vehicle, VIN, purchase price, usage (commuting, pleasure use, etc.), claims experience and location.
  • Driver information: Name, DOB, driver’s licence number, driving and claims history, as well as which vehicle they are driving.

How many cars do you need for multi-car policy?

A multi-car insurance policy just means you have two or more vehicles on your policy. If you have more than one vehicle that you keep at the same address, you can add them all to your policy. Some insurance companies may state that they must be “garaged” at the same address, but an actual garage isn’t required.

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

Yes. Two people in the same house can have two different auto insurance policies. In some cases, like someone who lives with a roommate, both people should absolutely have separate policies.

What are the benefits of a multi-car policy?

Bundling policies of more than one driver can provide you with numerous benefits:

  • Convenience: You only have one policy to worry about and one place to find all your car insurance information.
  • One monthly bank withdrawal: Instead of having money come out of your bank account or being charged to a credit card multiple times a month, you can select a single date to pay for all your auto insurance.
  • Savings: Most policyholders will save anywhere from 10–20% on their annual insurance premium by combining policies.

What is an occasional/secondary driver?

secondary driver, or occasional driver, is someone who uses a vehicle often, but doesn’t use it the most. These drivers also need to be on your insurance policy for that vehicle. Your insurance company will look at the driving record of the secondary drivers. Usually, your insurer charges an additional premium for that driver. This happens because the risk of an accident increases when more than one person uses the vehicle. Normally, anyone with a driver’s licence in a household needs to be on the policy. Anyone else who will be operating your vehicle on a regular basis should be added, regardless of whether they live with you. This includes friends, roommates, neighbours, nannies, siblings or colleagues. They will also be named drivers on the policy. Typically, this will mean that they drive your vehicle once per week or less than 50% of the time.

What is a Permissive Use clause?

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 live with you.

Can I add another vehicle to my existing policy?

Most insurers will allow you to simply add another vehicle to your existing insurance policy with them, offering you a discount for doing so. This makes it simple for you to receive insurance when you purchase a new vehicle.

Can I adjust my multi-car policy for each vehicle?

You can generally adjust your insurance coverage for each vehicle. This is a good feature, as it allows you to have basic coverage for an older vehicle that you want the lowest possible premiums for. You can then have comprehensive coverage for your newer vehicle that you want to protect.

Is it cheaper to insure a second car?

Most insurance companies will allow an individual to insure more than one car under the same driver’s name. They will be subjected to the same metrics as what would be used for a single policy. Insurance companies like the additional business, so they will quite often offer a discount for multi-vehicle coverage.

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.

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

If you live with a partner or significant other in 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, there are some exceptions to this. To learn more about when a multi-vehicle discount isn’t the best choice, click here.

Remember, you should always re-evaluate your insurance policy each year upon renewal, taking into account any changes that may have occurred since the previous year. Our isure representatives can help you investigate all the possible options that offer you the best overall coverage and price for your individual needs. Call us today to discuss a multi-car policy for your family today.

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