Securing your car with the right auto insurance policy happens to be a priority when purchasing a new vehicle.
Moreover, Canadian laws require you to get third-party liability insurance. Naturally, you would obtain multiple quotes for car insurance from different insurers. Ultimately, you would settle for the policy that offers maximum coverage at affordable costs.
Now, you might be wondering, “can you have multiple car insurance policies for the same vehicle?”. We have got you covered in this article, providing you with the most relevant explanations.
In case you want to purchase a car in Canada, click here to get multiple quotes for car insurance from the insurance experts at Surex.
Is it legal to have multiple insurance policies at once?
Yes, it’s legal in Canada to have two insurance schemes for a single car. However, you need to purchase two policies from different insurers since the same company wouldn’t insure your vehicle more than once. You may go for two policies if you own an exotic or classic vehicle.
Although you can legally insure your car with two policies, you cannot file a claim from both policies simultaneously. In case you file a claim from both insurance companies after an accident, it would be treated as insurance fraud.
So, if you fancy making double claims from different insurers following an accident, it can get you in trouble. In the end, you would have to shell out hefty fines. Also, one or both policies might be cancelled.
Should you go for two insurance policies for one car?
Technically, car owners can purchase multiple policies for their cars. However, experts recommend not to do so. With double insurance, you might unknowingly be violating the norms of one or both insurance companies. Moreover, if one insurer knows that the car already has coverage, they might ask the other company to settle the claims. This would simply complicate your situation.
You might sometimes face delays in getting the claim processed, or they might even reject your claim. So, it’s natural to obtain multiple car insurance quotes at once from a reputed expert like Surex. However, you should settle for only one insurance policy for your car.
Now, if you live with a spouse, you might wonder whether you should add the person to your policy or get a different one altogether. If both of you drive the same car, adding the person to the single policy would be wise. Experts often recommend sharing the policy with your spouse, given that you would have to pay more premium if you add another driver.
Besides, most insurers provide some clauses under ‘permissive use’. Therefore, they allow other drivers to use your car in case you provide consent.
In general, most owners refrain from purchasing multiple car insurance policies to secure the same vehicle. However, you may purchase the second one only when you want to secure a specialty or vintage vehicle.
Can you cover two cars under different insurance policies?
In case you own more than one car, you can get multiple insurance policies. Each of these schemes would cover an individual car. Although it is viable to purchase policies for multiple vehicles from a single insurer to avail of multiple discounts. Compared to multi-car insurance, purchasing separate policies for all your vehicles would be an extravaganza. Rather, you may consider having single insurance for all your cars.
However, there are exceptions when you may consider getting two different policies for separate cars. For instance, if one of the drivers turns out to be young and involves high risk, it would be wise to have separate policies. Compared to standard car insurance, classic car insurance is more cost-effective. You would be driving a classic car less often, so having a separate policy would save you bucks.
On the other hand, if you have a high-risk driver at home, and add them to your policy, be ready to fork out a higher premium. So, it would be advisable to get a separate policy for the young driver.
What are the downsides of having multiple insurance policies?
In general, insurance experts recommend not going for multiple auto insurance policies to cover the same vehicle. Having double insurance wouldn’t be a prudent move from a financial standpoint. Why would you shell out separate premiums to two insurers when there’s no additional advantage when you make a claim?
Moreover, having multiple insurance policies can create complications during the claim process. Let’s check why having multiple insurance schemes for your car is a bad idea.
- When you file a claim, the two insurers need to coordinate with each other. Unless they agree on the part each of them would cover, your claim would be on hold. Over time, the process would get complicated. Altogether, it would delay the claim settlement process.
- Even if you file a claim with one automobile insurer, the premiums will rise for both policies after the settlement.
- When you make a claim, you might end up losing the good driver discount, if applicable, on both policies.
- Each insurer might want the policyholder to add all the vehicles and drivers to the policy. In the process, the overall insurance cost might rise, particularly if you reside with a spouse.
- Rather than having two car insurance policies, it would be sensible to have one policy with more coverage. You can also divert funds to add optional benefits like comprehensive and collision coverage.
Is it possible to have multiple car insurance policies at once? — Final thoughts
When it comes to insuring multiple vehicles, the smartest move is to consult an insurance expert like Surex. With professional assistance, you can get multiple quotes for car insurance from some of the top-rated car insurance companies in the country.
The insurance experts at Surex can also guide you in customizing the policies with the necessary add-ons to ensure proper protection for your car.
Rather than squandering your money on different policies, you would be able to invest in the right coverage from a top-rated insurer to adequately secure your car.