If your household has more than one vehicle, is it better to bundle your auto policies or to search for the best individual deals? The best choice for you will depend on your unique needs. Let’s examine some of the pros and cons of multi-vehicle bundling, as well as answer some of the most commonly asked questions about multi-vehicle insurance bundling.
What Is a Multi-Vehicle Car Insurance Discount?
When buying multi-vehicle insurance, consumers will notice that most companies offer a discount for bundling coverage. If you have more than one policy in the same household or family, you may be eligible for a discount. This is known as a “multi-policy discount.” This discount applies if you have policies for yourself, your spouse, and your children (who may be driving). It can make it easier to pay premiums every month, although you may still need to pay separate bills for each policy, depending on your company. It can also save you money! Many companies offer discounts if you have several policies with them.
How Do You Qualify for a Multi-Vehicle Insurance Discount?
Different insurance providers have varying eligibility criteria for qualifying for a multi-vehicle discount. For instance, some carriers will allow one driver to insure up to five vehicles in their name, while others will limit it to two or three cars.
Your car insurance provider will take a close look at the following factors to determine your premium and whether you qualify for a discount, including:
- Your driving history
- Your insurance history
- Your age, gender, and where you live
- The vehicles to be insured, including the makes and models, what the replacement values are, and the average cost to repair them if you file a claim
Benefits of Multi-Car Insurance Bundling (Pros to Consider)
There are many reasons you might choose to bundle your insurance policies, such as:
- You want more savings. Given high car insurance rates in Ontario, a multi-vehicle discount can represent significant savings. Insuring multiple cars together can save you as much as 15% on your auto insurance policy. In practical terms, if you have been quoted a total of $4,100 in premiums for two drivers, that works out to a savings of about $615 annually.
- Convenience. Ensuring all drivers and vehicles are together under one policy is highly 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 a single set of payment dates.
- Children living away from home. Multi-car insurance policies cover car(s) and your kids if they live away from home part of the year for their schooling.
- Customize car coverage. All vehicles insured under the same policy retain some of their own unique coverages. You can customize your comprehensive and collision coverages per vehicle based on its value.
- You file a lot of claims. If you have too many claims on your car insurance, you risk being dropped by your insurer. Most are less likely to do so, though, especially if you are a client with multiple policies; however, it isn’t always a guarantee.
Things to Consider Before Choosing a Multi-Car Policy
While multi-vehicle policies offer many advantages, it’s essential to carefully consider your own unique circumstances before making a decision:
- Eligibility: Insurers typically have requirements about who qualifies for a multi-car policy. For instance, all vehicles must usually be registered at the same address, and drivers must be related or cohabitating.
- Deductibles & Coverage Levels: Although multi-vehicle policies allow you to customize your coverage, it’s crucial to review the coverage levels and deductibles for each vehicle. Ensure that the insurance policy meets your needs, especially if your vehicles vary significantly in value or use.
- Discounts and Offers: It’s always a good idea to shop around and compare prices to ensure that you get the best deal. Some insurers may offer additional savings for bundling home insurance or other types of coverage.
- Usage & Mileage Limits: Some insurers may impose limits or restrictions based on how each vehicle is used. Always be sure to be truthful when disclosing mileage driven and vehicle usage to your isure broker.
- Terms & Conditions: Pay attention to the terms and conditions of the policy, including how claims are handled, renewal terms, and any changes to discounts if you add or remove vehicles in the future.
Drawbacks of Multi-Vehicle Insurance (Cons to Watch Out For)
The discount for getting multiple policies from the same insurer can seem attractive. But there are actually a few key instances where bundling doesn’t make sense in every circumstance:
- Younger drivers, inexperienced drivers, and drivers with histories — like claims, points on their licence, or offences — will hike up the price of premiums. So, if you’re an older or more experienced driver with a clean record, multi-car insurance might be more expensive for you than taking out separate policies.
- Some companies strive to build loyalty, which means you’ll continue to receive a discount. Other companies will continue to offer you a “discount,” but may slowly raise the cost of your plans.
- When you are shopping for insurance bundles, you might not spend as much time comparing prices between providers. Failing to shop around is helpful for the insurance company, but not for you. Which is where an isure broker will step in and take care of the guesswork for you!
How to Choose the Best Multi-Vehicle Insurance Bundle in Ontario
- Compare bundles. When shopping around for the best multi-car insurance package, your isure broker will be sure to compare rates from multiple insurance companies.
- Shop around often. By shopping around regularly—say, every six months—you’re more likely to find the lowest insurance quotes that meet your changing coverage needs.
- Ask about affiliates. Most insurance companies have affiliate partners with whom they work to offer you deals. In some cases, an affiliate discount may provide you with a better rate (and more savings) than bundling will. However, if you don’t want your insurance bundled through an affiliate, please don’t hesitate to ask about it. You should know which companies you will be working with before you make a purchase.
Since different insurance companies offer different rates that change often, and multi-vehicle discount eligibility and percentages vary between them, do yourself a favour and compare auto insurance policies and premiums from a broad range of providers to get the coverage you need at a price you can afford.
When Keeping Separate Car Insurance Policies Makes More Sense
While several disadvantages may come with purchasing two car insurance policies, there might be certain situations where it makes sense:
- Business use. If you use the exact vehicle for both personal and business purposes, purchasing a personal auto insurance plan and a commercial auto insurance plan will be necessary. Your personal auto insurance policy might include limited coverage for business use, so you will need to check with your isure broker to find out precisely what is and isn’t covered.
- Driving records. If you and your partner drive the same car but one of you has a poor driving record and is deemed high risk, it may be most cost-effective for you to purchase your own policy rather than bundling them together.
- Classic/luxury car. You might have specific coverage needs for vintage or high-end vehicles. In this instance, it may be financially sensible to purchase a separate policy for your car.
- Not all insurers offer identical coverage. The types of coverage and their duration may vary between insurers. For example, new car replacement protection may be available for a longer period with some insurers than with others.
Qualifying for a multi-vehicle discount can save you money on your annual premium. And when combined with other discounts insurance providers offer for using winter tires and bundling home and auto insurance policies, as well as choosing higher deductibles, those savings can add up.
Final Thoughts: Is Multi-Vehicle Insurance Right for You?
If you have bundled multi-car insurance, your insurance provider still needs to meet your standards of coverage and service. If that isn’t happening, isure will be happy to shop around on your behalf. The only way to determine if a multi-vehicle insurance policy is right for your needs is to obtain multiple quotes from different companies, which is where we can help you. Fortunately, thanks to the ease of obtaining a quote online, it’s pretty simple to conduct comparison shopping.
When you’re ready to discuss multi-vehicle insurance, isure is prepared to take your call!
Drive with Confidence
Request your free car insurance quote now and get the coverage you deserve.
Learn more about the factors that influence car insurance premiums Read more
As the cost of living increases, many Canadians are looking Read more
At isure, we care about our customers! Read our full Read more
