Multi-Vehicle or Multi-Car insurance: How does it work?

Multi-car insurance can simplify your insurance needs while saving you money. But how exactly? Explore the ins and outs of multi-car coverage with us, including its benefits, how it works and whether it's cheaper than standard insurance.

We will also discuss its eligibility criteria and companies that offer the best policies. Whether you're insuring a family fleet or sharing coverage with housemates, you will find all the details you might need.

To find the best deal, we suggest comparing multiple options using our comparator. It's free to use and you can get personalized quotes completely online.

What is multi car insurance? 

Multi-car insurance, also known as a floater policy, is an insurance plan that allows you to insure multiple vehicles owned by the same person under a single policy. It offers several advantages, including:

• Discounted rates: Insurance companies typically offer discounts on premiums for insuring multiple cars together. It helps you save a lot, especially if you have several vehicles.
• Simplified paperwork: With multi-car insurance, you only have one policy to manage, with a single renewal date and one premium payment to track. This saves you time and hassle.
• Flexibility with drivers: Multi-car policies typically cover any licensed driver operating an insured vehicle, as long as they reside at the same address. This can be beneficial for families with multiple drivers.

There are usually limits to the number of vehicles you can cover under a single multi-car policy, typically up to five. For instance, to qualify, the vehicles must be registered at the same address.

How to get multi car insurance quotes?

You can get multi car insurance quotes by calling up insurance providers or reaching them over online chat. However, that might be time-consuming.

To make things easier for you, we've created a free tool that will give you results in a few quick steps. Use our free comparator below to compare the best multi car insurance quotes in Canada from the country's top providers, and get results based on your unique needs right here.

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How does multi-vehicle insurance work? 

Multi-car insurance works by bundling coverage for multiple vehicles (usually two or more) into a single policy.

Here's how it works:

1. You inform your insurance provider that you want to insure multiple vehicles under one policy.
2. You can do it when you initially get the policy or by adding additional cars later.
3. Each car on the policy will likely have its coverage options, including liability, collision and comprehensive. 
4. You can choose the level of coverage you want for each vehicle.
5. The beauty of multi-car insurance is the discount you typically receive for insuring multiple vehicles.
6. This multi-car discount rewards you for bundling coverage and can significantly reduce your overall premium.

Certain coverages, like liability insurance (protecting you from others' injuries and property damage) or uninsured motorist coverage, might apply uniformly across all vehicles in the policy. This means the same coverage limits apply to each car.

However, individual features like deductibles (the amount you pay out of pocket before insurance kicks in) and No Claims Discounts (NCDs, earned for claim-free years) are usually tracked separately for each car. So, a clean driving record with one car won't affect the premium of another car on the policy.

Also, with multi-car insurance, you only have one renewal date and one bill to manage, simplifying the process.

Is multi-car insurance cheaper?

In most cases, yes, multi-car insurance is cheaper than standard car insurance for insuring multiple vehicles.

Here's why:

• Discounts: Insurance companies typically offer multi-car discounts, which can bring down your overall premium significantly. These discounts can range up to 25% or even more, depending on the insurer.
• Bundling efficiency: By bundling coverage for multiple vehicles, you eliminate the administrative costs associated with maintaining separate policies. This translates to savings for you and the insurer, reflected in the discounted rate.

However, there are some situations where multi-car insurance might not be the cheapest option:

• High-risk drivers: If one of the drivers you want to insure has a poor driving record with accidents or violations, it might inflate the premium for the entire multi-car policy. In such cases, separate policies with individual driving records for each car might be cheaper.
• Older cars with low value: If you have older cars with a low market value, insuring them separately with liability-only coverage (minimum required insurance) might be cheaper than including them in a multi-car policy, even with the discount.

How do I qualify for multi-vehicle discounts?

Most insurers require at least two vehicles insured under the same policy to qualify for the discount. Some may offer increased discounts for three or more cars.

Here are the other factors that can influence your eligibility for multi-vehicle discounts:

• Household residents: Generally, all vehicles must be primarily operated by you or family members residing in the same household. Some insurers might extend the discount to non-relatives who co-own the property.
• Driver's license and age: Drivers on the policy must have valid licenses, and some insurers may have minimum age requirements.
• Vehicle registration: The vehicles you want to insure must have the same registration address.
• Driving record: A clean driving history (free of accidents and violations) for all insured drivers can improve your chances of getting a bigger discount.
• Insurance history: A history of loyalty to the insurance company with no lapses in coverage can also be a plus.

That said, specific criteria can vary between insurance providers. Contact your insurance company directly or get quotes from different insurers to confirm their eligibility requirements and discount rates for multi-vehicle policies. You can also use our comparator and get the quotes here.

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Which companies offer the best multi-car insurance policy?

It's difficult to say definitively which company offers the absolute "best" multi-car insurance policy in Canada since our best options might not fit your bill. It all depends on your specific situation and driving profile.

While we don’t have a list of the best companies, we have collated several Canadian insurance companies that are consistently rated well for multi-car insurance:

1. The Personal: The Personal is a subsidiary of Canadian insurance giant Desjardins. It offers competitive rates and a variety of discounts, including multi-vehicle discounts.
2. Cooperators: The Co-operators is another highly-rated insurer in Canada. It offers multi-vehicle discounts and is known for its customizable coverage options and good customer service.
3. Sonnet: Sonnet is a relatively new player in the Canadian insurance market, but it has quickly gained a reputation for offering competitive rates and a user-friendly online platform. Sonnet does offer multi-car discounts.
4. Intact: Intact is the largest car insurance company in Canada. It offers a variety of coverage options and discounts, including multi-vehicle discounts.
5. Economical Insurance: Economical Insurance is a well-established provider known for its competitive rates and commitment to customer service. It offers multi-vehicle discounts.

Who can you put on a multi-car insurance policy?

The people you can put on a multi-car insurance policy typically depend on two main factors:

1. Relationship to you: Mostly, insurers allow you to include drivers who reside in the same household and are related to you. This can include spouses, partners, children, parents and siblings.
2. Insurable interest: An "insurable interest" means someone has a financial stake in the vehicle and would suffer a loss if it were damaged or destroyed. This could be someone who co-owns the car with you.

People you can potentially include:

• Spouses and partners: If you live together and share car usage, you can usually include your spouse or partner on the policy.
• Children: Once your children reach driving age and have a valid license, you can add them to your multi-car policy, assuming they live at home.
• Parents and siblings: If parents or siblings live with you and are licensed drivers who use the insured vehicles, they might be insurable on the policy.
• Roommates/non-relatives: Some insurers may allow including non-relatives who reside in the same household on the policy, particularly if they co-own a vehicle with you. However, this is not as common and depends on the specific company's guidelines.

Can you customize coverage levels for each vehicle?

Yes, you can customize coverage levels for each vehicle in a multi-car insurance policy to a certain extent.

Here's what you can customize:

• Collision and comprehensive: These coverages are optional for each vehicle. You can choose to have full coverage (collision and comprehensive) on a newer car but opt for just liability coverage on an older vehicle with a lower value.
• Deductibles: You can choose different deductibles (the amount you pay out of pocket before insurance kicks in) for each car on the policy. A higher deductible lowers your premium and vice versa. You can customize this based on your risk tolerance and the value of the car.
• Add-on coverages: You can choose certain add-on coverages, such as roadside assistance or rental car reimbursement, on a per-vehicle basis. You might elect to have them for your primary car but skip them for a less frequently used vehicle.

Standardized coverages that you can’t customize

• Liability insurance: This coverage protects you from financial responsibility for injuries and property damage caused to others in an accident you are at fault for. In most cases, liability limits (minimum coverage required by law) will be the same for all vehicles on the policy.
• Uninsured/underinsured motorist coverage: This protects you if you're hit by a driver with no insurance or not enough insurance to cover your damages. Similar to liability, the coverage limits are often standardized across all vehicles in the multi-car policy.

Coverage Option	Customizable?
Collision coverage	YES
Comprehensive coverage	YES
Deductible amounts	YES
Add-on coverages (roadside assistance, rental reimbursement)	YES
Liability insurance	NO
Uninsured/underinsured motorist coverage	NO

Tailoring coverage to each car's value and usage allows you to optimize your premium and avoid overpaying for unnecessary coverage on older vehicles.

The secret to finding the best deal is to compare multiple options and pick the one that best meets your needs and expectations. Use our comparator to get personalized quotes and start comparing. Get a multi-car insurance quote now!

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