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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 come down to your distinctive needs. Let’s examine some of the pros and cons of multi-vehicle bundling, as well answer some of the most commonly asked questions about multi-vehicle insurance bundling.

What is a multi-vehicle insurance policy 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 might be able to get a discount. This is known as a “multi-policy discount.” This discount comes into play 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.

What are the pros of multi-car insurance? 

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. 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, not to mention that you will only have to remember one renewal date and 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, if you are a client with multiple policies, but it isn’t always a guarantee.

What are the cons of multi-car insurance? 

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:

  • 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

  1. 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. It’s important to pay close attention to the premiums. Sky-high premiums might be where your promised savings go down the drain.
  2. 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.
  3. Ask about affiliates. Most insurance companies have affiliate partners that they work with to give you deals. In some cases, an affiliate discount may offer you a better rate (and more savings) than bundling will. However, if you do not want your insurance bundled through an affiliate, ask about it. You should know what companies you will be working with before you buy anything.

When having multiple insurance providers makes sense

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

  1. Business use. If you use the same vehicle for both personal use and business, 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 exactly what is and isn’t covered.
  2. Driving records. 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.
  3. Classic/luxury car. You might have specific coverage needs for vintage or high-end vehicles. In this instance, it may make financial sense to purchase a separate policy for your vehicle.
  4. 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.

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 know if having a multi-vehicle insurance policy is right for your needs is to get multiple quotes from different companies, which is where we step in for you. Fortunately, thanks to it being quick and easy to get a quote online, it’s fairly simple to do this comparison shopping.

When you’re ready to discuss multi-vehicle insurance, isure is ready to take your call!

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