Your Guide to Understanding Multi-Car Policies in Canada

Plenty of households own more than one vehicle in Canada, and it can be due to a variety of reasons: family needs, business travels, or simply a matter of personal preference. The average Canadian household has 1.5 cars, including SUVs and pickups. 

In Canada, the cost of car insurance varies based on several factors, such as your vehicle’s make, model, year, value, modifications, potential vehicle repair costs, and your driving habits. For households or individuals who own multiple vehicles, the cost of auto insurance coverage can quickly add up if it isn’t carefully monitored. Navigating all of this can quickly become overwhelming!

Luckily, multi-car policies are a convenient and cost-effective solution for insuring multiple vehicles under one umbrella. In this guide, we'll explore what multi-car policies are, when you might consider it, the advantages, and the steps to take when obtaining a multi-car policy.

What Are Multi-Car Policies?

A multi-car policy is a type of auto insurance in Canada that allows you to insure multiple vehicles under a single policy. A multi-car policy consolidates your vehicles into one plan instead of having individual policies for each car, often offering a discount as a result. This policy is beneficial for families or households with multiple drivers and vehicles, making the management of insurance more streamlined and usually more affordable.

When to Consider a Multi-Car Policy

Here are some instances when you might want to consider a multi-car policy:

 

1. Families with Multiple Drivers and Vehicles: If your household includes teenagers who drive, adult children, or multiple adults with their own vehicles, a multi-car policy can simplify the insurance process by consolidating everything into one plan.
2. Couples with Separate Vehicles: Even if you and your partner have separate cars, insuring them under a single policy can save money and reduce the hassle of managing separate insurance documents and payments.
3. Small Business Owners: If you use multiple vehicles for your business, such as delivery vans, service vehicles, or company cars, a multi-car policy can provide comprehensive coverage while often reducing the overall insurance cost.
4. Car Enthusiasts: For those who own a primary vehicle and one or more secondary vehicles (like a classic car, sports car, or motorcycle), a multi-car policy can offer flexible options for covering all your vehicles.
5. Households with Seasonal Vehicles: If your household includes vehicles used seasonally - like a summer convertible or winter SUV - a multi-car policy can make it easier to manage your insurance needs throughout the year.

 

Advantages of Multi-Car Policies

There are several advantages to opting for a multi-car policy beyond just the convenience of having everything under one policy:

 

1. Cost Savings: One of the main advantages of multi-car policies is the potential for significant cost savings. Insurers often offer discounts for bundling multiple vehicles under one policy, which can lead to lower premiums compared to having separate policies for each car.
2. Simplified Management: Managing car insurance for multiple vehicles can be a headache when each has its own policy. A multi-car policy simplifies everything with a single renewal date, one set of documents, and unified communications from your insurer.
3. Consistent Coverage: A multi-car policy ensures that all your vehicles have consistent coverage levels. This uniformity can help prevent gaps in coverage or discrepancies between policies, giving you peace of mind that all your vehicles are adequately protected.
4. Customization Options: Despite being bundled under one policy, you can still customize coverage for each vehicle based on its use and value. For example, a luxury car might need more comprehensive coverage than an older, secondary vehicle.
5. Easier Claims Process: In the unfortunate event that multiple vehicles are involved in the same incident (like a hailstorm or garage fire), having a multi-car policy can streamline the claims process since all vehicles are covered under the same policy and insurer.

Things to Consider Before Choosing a Multi-Car Policy

While multi-car policies offer many advantages, it’s important to carefully consider a few details before making a decision:

 

1. Driver 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.
2. Coverage Levels and Deductibles: Although multi-car policies allow customization, 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.
3. Discounts and Offers: Not all insurers offer the same discounts for multi-car policies. It’s wise to compare options and shop around to find the best deal. Some insurers may offer additional savings for bundling home insurance or other types of coverage.
4. Mileage Limits and Usage: Some insurers may impose mileage limits or restrictions based on how each vehicle is used. Be sure to disclose accurate information about your vehicle usage to avoid any issues with coverage.
5. Policy Terms: 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.

 

How to Obtain a Multi-Car Policy

If a multi-car policy sounds like a good fit for your needs, obtaining one is straightforward. Here are the steps to get started:

 

1. Assess Your Needs: Begin by evaluating your current auto insurance situation. List all the vehicles in your household, including details about each car’s value, use, and any unique coverage requirements.
2. Gather Driver Information: Collect information about all drivers in your household, including license numbers, driving history, and any special considerations (such as a teenager with a learner’s permit).
3. Compare Quotes: Request quotes from multiple insurance providers to compare multi-car policy options. Be sure to provide accurate information to receive the most relevant quotes.
4. Review and Customize: Once you receive quotes, review them carefully to ensure that the coverage meets your needs and budget. Customize the policy to suit each vehicle’s specific requirements, and don’t hesitate to ask your insurance broker any questions.
5. Finalize Your Policy: After selecting the best multi-car policy, finalize the details with your insurer. Make sure you understand the policy terms, payment schedule, and any ongoing requirements to maintain your coverage.
6. Maintain Your Policy: Keep your multi-car policy up-to-date by regularly reviewing your coverage needs, especially if you add or remove vehicles, drivers, or change your vehicle usage.

Multi-car policies offer a convenient and cost-effective way to manage auto insurance for households with different vehicles. By consolidating your coverage under one policy, you can enjoy savings, simplified management, and consistent protection for all your vehicles. 

Ready to simplify your insurance and save on your premiums? Contact BIG today for a personalized auto insurance quote and expert advice tailored to your multi-car needs. Let our brokers help you secure the perfect coverage that protects all your vehicles without breaking the bank. 

Don’t settle for less - reach out now and experience the convenience and savings of the right multi-car policy with BIG!