Can you have two auto insurance policies? Each province and territory in Canada requires drivers to purchase car insurance. In other words, you can’t drive without a valid auto insurance policy.
Car insurance protects you from collisions, bodily injury and property damage on the road. Having two auto insurance policies provides twice the coverage, right? This isn’t always the case.
When it comes to auto insurance, two isn’t always better than one. Read on to learn more about purchasing more than one car insurance policy and the pros and cons of doing so.
Can you legally purchase two car insurance policies in Canada?
You can legally purchase car insurance policies for the same vehicle. However, your insurance company won’t insure the same car twice. That means you would have to buy the other policy from a different provider and pay for separate car insurance policies.
Purchasing two car insurance policies is legal, but filing the same claim with both companies is not. You cannot purchase two policies with the intent to receive a payout from both insurance companies if you have to file a claim. This is considered insurance fraud and could lead to the cancellation of your policy.
Most people don’t have two separate car insurance policies and two separate premiums. The main exception is those who own a specialty vehicle like a classic car. The other scenario is a person forgetting they already have an active policy and accidentally purchasing a new one.
Can you insure the same vehicle twice?
You can have two car insurance policies for the same vehicle, but it isn’t recommended. Although it is legal to insure a vehicle twice, it may violate an insurer’s policy.
When you purchase multiple auto insurance policies, you are taking a risk. That’s because one insurance provider may ask the other to pay for future claims.
This could result in your claim payments being delayed or not paid by either provider. By only purchasing one insurance policy, you can avoid the hassle, confusion, and potential violation of policy terms.
Can you purchase two auto insurance policies for two different vehicles?
You can purchase two separate insurance policies for two different vehicles. If you own multiple vehicles, this is your choice. However, this is often more expensive than purchasing multi-car insurance, which insures multiple cars under the same policy. Not everyone prefers this option.
For example, if you own a classic or vintage car or a member or a member of your household is a young driver who could increase your car insurance premiums, you may purchase separate policies. It can save you money in the long run.
If you are unsure about how many car insurance policies you should have, contact BrokerLink. We can obtain quotes on your behalf. From there, we can help you find the best auto insurance coverage at the lowest rate.
Can my partner and I have two separate insurance policies?
If you live with a partner or significant other, you may wonder if you should have a policy with the same car insurance company. The other option is to have your own policies.
If they are a member of your household and drive your vehicle, your car insurance company will ask for them to be listed on your policy. However, adding a driver to your car insurance policy can increase your rates. Despite this, being insured under the same auto insurance policy is the best way for couples to save money. It might make you eligible for a multi-car insurance discount.
In some cases, it might make sense to have your own car insurance policy. This is especially true if you don’t live together. If you or your partner have a poor driving record or low credit score, your auto insurance provider might increase your rates. If your partner drives more, you might also lose your eligibility for low-mileage car insurance.
Another reason to have your own auto insurance policies is when one of you owns an expensive, luxury vehicle. Being covered by the same car insurance company can increase your rates.
Permissive use clauses
If you don’t live with your significant other, two car insurance policies might make more sense. However, you can still provide them with coverage if your auto insurance company has a “permissive use” clause.
A permissive use clause allows drivers who do not live in your household to use your vehicle with your permission. Insurance providers have various permissive use clauses. Despite this, significant others can be covered even if they don’t live with you.
With that said, if your partner isn’t insured by another insurance company, they might be covered by a permissive use clause. Additionally, they should just be added to your policy if they drive your vehicle regularly.
Advantages of two car insurance policies
Sometimes, there are good reasons to purchase two car insurance policies. It might make more financial sense in some instances. Depending on your driving records, being under the same auto insurance policy as your partner can add up. Here are the advantages:
- Two car insurance policies allow you to have one for personal use and another for business use. Sometimes, purchasing a personal and a commercial auto insurance policy makes more sense.
- Purchasing a separate insurance policy for a classic or expensive luxury car is often more affordable than bundling.
- If you or your partner is a high-risk driver, having your own car insurance policies will not increase the safe driver’s premiums.
Disadvantages of two car insurance policies
Most experts advise against having two car insurance policies. This is because it doesn’t usually make financial sense. When this happens, you will have to pay two separate premiums, which overcomplicates the claims process. Here are some other disadvantages:
- When you file a claim, insurance companies need to coordinate with one another to decide who will cover which part of the claim. It can be a complicated and lengthy process, delaying compensation.
- Your insurance premiums will increase with both companies regardless of who you file a claim with.
- You could lose your safe driver discount with both insurance providers.
- You may have to add all drivers and vehicles to each insurance policy, increasing your premiums. This is especially true if you compare it to being insured with your partner under one policy.
- Two-car insurance policies don’t double the coverage. Instead, it may increase your coverage limit or add optional coverage like collision coverage.
Why should you purchase multi-car insurance instead of two car insurance policies?
Having everyone under the same car insurance policy makes more sense. Why? It allows each person in your household to receive customized coverage. Bundling car insurance policies is definitely something to take advantage of. Multi-car insurance is one of many helpful types of auto insurance.
To get multi-car insurance, you need to purchase enough coverage to make your policy valid in the province or territory in which you live. Asking your insurance provider to help you use multi-car insurance can save you up to 20%. You must provide the required documents when purchasing this type of car insurance.
These policies are more convenient because you only have one insurance bill and renewal date to keep track of. It’s meant to cover family members living in the same household. However, it can cover people living at different addresses, including a child who’s moved away for college. BrokerLink’s expert insurance advisors have compiled a list of advantages multi-car insurance offers. These include:
- Insuring multiple cars can save you up to 20% on your auto insurance policy.
- It is convenient to insure drivers and vehicles under one policy. You can deal with the insurance provider for all claims and only have to remember one set of renewal and payment dates.
- Some multi-car insurance policies cover cars and drivers away from home for part of the year. This can help when children move away temporarily for college or university.
- All vehicles have to be insured under the same policy, but you can still have unique coverages for each one. For example, you don’t have to add optional types of coverage, such as comprehensive coverage and collision coverage, on all of your vehicles. Remember that some types of coverage aren’t optional, such as uninsured automobile insurance.
Contact BrokerLink today
Do you need one or two car insurance policies? Find out by getting in touch with BrokerLink. We will ask you a few questions about your circumstances and give you our professional opinion. Then, you can decide whether you need one or multiple car insurance policies.
You can get in touch by calling or emailing us. You can also visit us in person at one of your many locations across Canada. If you’re ready to purchase car insurance, we invite you to use our online quote tool to request a free insurance quote. After providing some basic information about yourself, your vehicle and the type of coverage you require, you will receive an accurate and competitive quote. It’s that simple!
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