Multi-vehicle car insurance policies and how they work

If you own more than one vehicle, you probably know how much of a pleasure it is. Yes, it's certainly an expense, but it can also be incredibly convenient. There are multiple cars to enjoy different experiences, like a stylish sports car for the summer months and your trusty van for when it gets colder, several cars to rely on if one needs to go in for repairs or maintenance, and double (or triple, or quadruple, etc.) the choices!

That being said, insurance is something you'll need to consider when owning multiple cars. If you own several vehicles or want multiple car insurance policies for a single driver, it's important to understand the finer details. Let Panda7 shed some light on multi-vehicle insurance policies and how they work.

How to insure multiple cars?

Just like insuring a single vehicle. You see, a multi-vehicle insurance policy is an insurance contract designed to protect more vehicles, just as a typical car insurance policy is designed to protect a single vehicle. It's the most cost-effective way to buy two separate policies, and there are a few other advantages as well.

When you insure multiple cars and there's only one driver, the primary driver of both vehicles will be listed as the same person. For example, if you lived in a large household but only one person had a driver's license, that person would automatically become the primary driver. However, a secondary driver might also drive the vehicle, but they wouldn't be the one using it most of the time like the primary driver.

If you live with a family and own multiple vehicles, your insurance policy will typically list several primary and secondary drivers, assigning each driver to the vehicle they drive most often. For example, perhaps both adults in the household have their licenses and use two vehicles, or there are teenage drivers who also want to use the vehicles. In this case, each person would be assigned their specific role for each vehicle based on usage and would be listed accordingly on the policy.

In short; you can insure multiple cars through a multi-vehicle insurance policy, where the policies will list primary and secondary drivers accordingly.

What is a multi-vehicle car insurance policy?

A multi-vehicle car insurance policy can vary from province to province. Essentially, it involves grouping several vehicles and drivers under a single contract. In this case, all vehicles will have the same effective and expiry dates. This can greatly simplify organization, as you pay premiums for all vehicles at the same time each month, and everything is consolidated into one document. There's no need to frantically search for individual information for each separate car insurance policy, and tracking your finances becomes much easier.

Depending on your insurer and where you live, many car insurance policies typically have a single liability limit designed to protect all drivers and all vehicles. Quebec follows a system where $50,000 in liability insurance is recommended, but you can always purchase additional coverage from a private insurer to enhance your protection.

That said, when it comes to individual private insurance policies, each vehicle can maintain its own limits and coverage. This is especially useful when families have a newer vehicle and a much older one, and you want to save money by removing the collision and comprehensive coverage portion from the older vehicle. You can then purchase a depreciation endorsement separately for the newer vehicle.

Application for a multi-vehicle car insurance policy

Applying for a multi-vehicle auto insurance policy in Quebec is not very different from applying for a single-vehicle auto insurance policy.

You must ensure that the owners of the insured vehicles are listed on the policy, not just the drivers. If you drive a vehicle you don't own, you cannot add that vehicle to your policy (i.e., a vehicle you borrowed from someone else). Coverage can only be determined by the vehicle's owner.

The insured vehicles must have the same start and end dates. If you combine two policies, you may want to add the additional vehicles to a single policy in stages over a single year to ensure coverage and avoid cancellation fees.

As with any car insurance application, you will need to provide the following information for all vehicles that are insured:

• The VIN of each insured vehicle
• The year, make and model of the vehicle(s)
• Insurance history
• Vehicle locations
• If the vehicle is intended for recreational use, shuttle service, etc.

You will also need to provide information about the drivers, including their first and last names, date of birth, driver's license number, insurance history, traffic violations and driving record, and the car they regularly drive. A crucial part of this process is assigning each driver to the vehicle they regularly drive. If you do this incorrectly and an expert learns that the drivers were not properly assigned, your claim could be denied in the event of an accident.

Conclusion

Insuring multiple cars under a single multi-car policy is an excellent way to reap the benefits of a multi-vehicle discount. Most Canadian (and Quebec) private insurance companies offer this type of discount, although the exact percentage you'll receive may vary.

Multi-vehicle car insurance policies are also more convenient for families with multiple vehicles. It's easier to keep track of everything, payments and expiry dates are all in one place, and it's simply less complicated. Learn more about how you can save on your car insurance if you have multiple cars by insuring them under a multi-vehicle policy with Panda7 today. Call us or request a quote.