Multiple-car insurance policies & how they work

If you own more than one vehicle, you’re probably aware of how much a delight it can be. Yes, it’s certainly an expense, but it can be a great convenience as well. There’s multiple cars to enjoy for different experiences, like a fancy sports car for the summer months and your trusty van for when it gets colder, multiple cars to rely on if one car needs to go to the shop for repairs or maintenance, and double (or triple, or quadruple…) the choices!

That being said, insurance is something that’ll need to be considered when owning multiple cars. If you own multiple vehicles or if you want multiple car insurance policies for a single driver, it’s important to navigate the finer details. Let Panda7 enlighten you on multi-car insurance policies and how they work.

How do you insure multiple cars?

The same way you’d insure a single vehicle. See, a multiple-car or multi-car insurance policy is an insurance contract which is designed to protect more than vehicle, the same way a typical auto policy is designed to protect a single vehicle. It’s the more cost-effective version of purchasing two separate policies, and there’s a few other advantages as well.

When you insure multiple cars, and there’s only one driver, the principal driver on both vehicles will be listed as the same person. Say you lived in a household with numerous people but there was only one licensed individual – that person would automatically then become the principal driver. A secondary driver, on the other hand, also drives the vehicle, but they’re not the person who majorly uses the vehicle like the principal driver.

If you live with a family and you have multiple vehicles, typically your policy will list out several primary and secondary drivers, assigning each specifically to the vehicle that they drive the most. I.e., maybe both adults in the household have their licenses and use two vehicles, or there’s licensed teenaged drivers who want to use the vehicles as well. In this case, each person would be assigned their particular role to each vehicle depending on usage and be listed as such on the policy.

TLDR; you can insure multiple cars through a multi-car insurance policy, where policies will list primary and secondary drivers accordingly.

What is a multiple car insurance policy?

A multi-car insurance policy can look different from province to province. It’s essentially the act of putting multiple vehicles and drivers together on a single contract. In this case, all cars will have the same effective and expiry dates. This can make it a big easier when it comes to organization, as you’ll be paying premiums for all vehicles at the same time each month, and everything’s lumped together in a single document. There’s no scrambling around to find individual information for each separate car insurance policy and keeping track of finances is much easier.

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

That being said, when it comes to individual private coverages, each vehicle can maintain its own limits and coverage. This is especially helpful for when families have one newer vehicle and one much older vehicle, and you want to save money by eliminating the collision and comprehensive coverage portion on the older vehicle. You might, separately, purchase a depreciation endorsement for the newer vehicle.

Applying for a multiple-car insurance policy

Applying for a multiple-car insurance policy in Quebec is not all that different from applying for a car insurance policy for a single vehicle.

You’ll need to ensure that the owners of the vehicles being insured are listed on the policy, not just the drivers of the vehicles. If you are driving a vehicle that you don’t own, you cannot add that vehicle to your policy (i.e., a vehicle that you’ve loaned from someone else.) Coverage may only be determined by the owner of the vehicle.

The vehicles being insured must have the same effective and expiry date. If you’re combining two policies, you may want to add the additional vehicles into one single policy in gradual stages over a single year to ensure continuous coverage and avoid cancellation fees.

As with any auto insurance policy application, you’ll need to provide the following information for all the vehicles that are being insured:

• The purchase price of the vehicle(s) being insured
• The VIN of each vehicle being insured
• The year, make, and model of the vehicle(s)
• Insurance history
• Location of vehicle(s)
• Whether the vehicle is for pleasure usage, commuting, etc.

You’ll also need to provide information about the drivers, including their first and last name, their date of birth, driver’s license number, their insurance history, traffic violations and driving record, the car that they regularly drive, etc. An important part of this process is to assign each driver to the vehicle they regularly drive. If you do so incorrectly, and an adjuster learns that the drivers were not assigned properly, your claim could be denied in the event of an accident.

Conclusion

Insuring multiple cars through a single multi-car policy is a great way to reap the benefits of a multi-vehicle discount. Most Canadian (and Quebec private insurers) companies offer this kind of discount, although the exact percentage of discount you’ll receive can vary.

Multi-car insurance policies are also just more convenient for families with multiple vehicles. It’s easier to keep track of, payments and expiry dates are all at the same time, and it’s simply less hassle. Learn more about how you can save on your vehicle insurance if you have multiple cars by insuring them under one multi-car insurance policy with Panda7 today. Give us a call or apply for a quote.