How Does Insurance Work for Multiple Cars?

Are you among the 83% of Canadians that owns at least one vehicle?

Chances are, you might need to buy another car and start looking for insurance for multiple cars. As you grow your family, you need to insure all the vehicles that you currently own.

Rather than paying separate premiums for each vehicle, having a multi car insurance policy makes sense. If the concept of multi vehicle insurance is new for you, we have got you covered.

Car owners in Toronto habitually consult established insurance experts like Surex while purchasing multi car insurance policies.

This article has discussed what this type of insurance policy covers. Besides, you will know the perks and drawbacks of a multi vehicle insurance policy. Lastly, we have discussed whether or not this policy would suit your needs in case you own more than one car.

What is a multi car insurance policy?

Suppose you own two cars and garage them at the same location. With a multi vehicle insurance policy, you would be shelling out a consolidated or single premium to cover both vehicles. Simply defined, a multi vehicle insurance policy covers more than one vehicle.

However, some policies don’t even require the owner to garage them at the same address. So, if you currently own a car and have been planning to purchase another, there’s no need to get a second insurance policy. You can include the second car under the existing coverage. Talk to the insurance experts at an online insurance brokerage regarding the revised premium and benefits.

How does a multi car insurance policy work?

Although the same automobile insurance policy covers all cars, you can allocate a specific share of coverage for each car. So, the owner has the liberty to decide the excess amount they are ready to pay for each additional vehicle. This implies that even if you file a claim for one of the insured vehicles, the no-claim bonus of the other vehicles won’t be lost.

In terms of coverage, you can also have the same level of protection for all the cars. The prime difference would be in the price, as you need to pay more premium for multiple vehicles.

Moreover, you may add the names of your family members as drivers in each of these vehicles. This way, all of them would be entitled to drive the cars legally.

Suppose you are purchasing a multi car insurance policy lasting 12 months. So, how should you calculate the renewal date of the premiums? In these cases, the policy would be activated on the latest renewal date considering the vehicles you own.

Let’s take a real example to understand this better. Suppose you own two cars. One of these cars has coverage till April under the existing policy, while the other is insured till June. So, when you pay the premium for your multi car policy, it will be active from June. Your insurer would provide short-term or temporary coverage to the first car between April and June to keep it covered.

Advantages of having a multi car insurance policy

Rather than keeping track of two or more car insurance policies, having a multi vehicle insurance policy is always convenient. Here are some practical reasons to go for these policies.

Affordable packages

Usually, reputed automobile insurers offer a discount when you add a car to your existing policy. This makes a multi car insurance policy cheaper than having two separate policies. As you keep adding more cars to the policy, the cumulative premiums will keep coming down.

Convenient to renew

Remembering too many renewal dates for multiple car insurance policies is a cumbersome task. With a multi car insurance policy, you need to pay the premium on the same day. So, you need not remember separate dates or renewals for the insurance policies of all your cars. With a single insurer to deal with, the process becomes much breezier.

Covers entire household

Some policies cover as many as six cars in a household. You can also add as many as 12 drivers to the policy. This implies even large families can benefit from a multi car insurance policy.

Cons of having a multi vehicle insurance policy

Although having a multi car insurance policy turns out to be affordable, such may not be the case for all households.

You might have an inexperienced or high-risk driver at your home. Teenagers are more likely to get involved in accidents due to their lack of experience and aggressive driving tendencies. In these cases, it would be advisable to have separate policies for such drivers. Adding a young driver to your existing policy might increase your premiums significantly.

Who should purchase a multi car insurance policy?

If you reside in a family owning more than a single car, you can opt for a multi vehicle insurance policy. You can purchase a single insurance for multiple cars under the following conditions.

  • If you have multiple drivers or cars in your household
  • If both couples own a car
  • If you personally own more than one car
  • If you reside in a shared household having several cars

However, to be eligible for this insurance policy, you must have all the cars registered at the same address. Some insurers, nevertheless, provide coverage for vehicles you keep at a different address.

For instance, if you have children studying at the university, you might have a multi car insurance policy even if they keep their cars elsewhere. Insurance brokers at an online insurance brokerage can help you find reliable insurers who would be ready to cover multiple cars at different locations.

Getting insurance for multiple cars — Endnote

If you are thinking of insuring multiple cars under the same policy, make sure to shop around for the best rates. In Canada, most households owning multiple cars work out with established insurance brokers. This way, they can choose the policy from multiple insurers. Experienced insurance experts can guide you in choosing the best multi car insurance policy.

It feels great to save on your insurance premiums. So why not benefit from the privileges reputed insurance companies have rolled out for you?

Get all your vehicles covered under the same policy to slash the annual premiums.

Interesting Related Article: “Short-Term Car Insurance: Everything You Need to Know