Second Car Insurance Ontario

Multi-Car Insurance for Ontario Drivers

It's not uncommon for Ontario households to have more than one personal vehicle, whether several people in the home need to be able to use a car at the same time for separate purposes or a single person wants multiple vehicles for different reasons or purposes.

It's no secret that any car driven on Canadian roads must have mandatory car insurance coverage. Of course, that includes second cars—but once you already have insurance for one vehicle, the best option for the next vehicle will likely be second car insurance. Ontario drivers ready to get another vehicle for their household can start by contacting their qualified broker at Morison Insurance about a second car insurance quote. We'll search out the best options for second car insurance so you can feel certain you have the right coverage at the right cost.

What is Second Car Insurance?

When it comes to second car insurance, Ontario residents should note that this term typically refers to insurance coverage for an additional vehicle (car, truck, SUV or otherwise) that the same policyholder owns as the first vehicle. It is a way of bundling another vehicle's insurance coverage with your current policy for your primary vehicle.

Why Should a Policyholder Choose Second Car Insurance in Ontario?

The main reason why a policyholder should consider choosing second car insurance in Ontario is that bundling insurance for multiple vehicles together with the same insurance company usually results in a discount on premiums. The multi-car discount is an incentive for policyholders to stick with one insurance provider.

That being said, there are other benefits to second car insurance beyond a bundling discount, including that everything is combined into a single policy with one premium and one renewal date. That simplifies the whole process because you don't have to worry about keeping track of different policies and payments from various insurance companies.

What Type of Coverage is Available for Multi-Car Insurance?

Generally speaking, all the same types of coverage available for your primary vehicle are also available for your second car insurance in Ontario. That includes standard, mandatory coverage such as:

• Third-Party Liability Insurance
• Statutory Accident Benefits Coverage
• Direct Compensation Property Damage (DCPD) Coverage
• Uninsured Motorist Coverage

It also includes optional coverage that you may want or need for your second car insurance, such as:

• Physical Damage Protection
• Comprehensive Coverage
• Collision Insurance
• All-Perils Coverage
• Loss of Use Protection
• Accident Forgiveness Coverage
• Vehicle Depreciation Waiver
• Conviction Protection Coverage

Does Second Car Insurance Provide the Same Coverage as My Primary Vehicle Insurance?

If you want identical coverage for your second car insurance as you have for your first vehicle, that's certainly possible—but it doesn't have to be that way. Most auto insurance companies will allow you to customize your second car insurance so it's perfectly tailored to your insurance needs for that particular vehicle.

Your second car may be used in a very similar way to your first vehicle, and in that case, it could make perfect sense to have the same types of coverage and coverage limits for both vehicles. But if you use your secondary vehicle differently—maybe you only drive it on the weekends while your other car is for everyday use, for example—it would benefit you to have your second car insurance coverage tailored to suit how you use that car. Different usage patterns are just one of the factors that can potentially increase or decrease your risk levels for that particular vehicle.

Is Second Car Insurance Always Cheaper Than Ensuring Two Cars Separately?

The answer to this question is a bit more complex than a simple yes or no. Typically, it is less expensive to get second car insurance. Ontario policyholders can benefit from a multi-vehicle discount that excludes separate insurance policies. However, it's important to note that this isn't always going to be the case. As with any insurance policy, premiums are determined based on a wide range of factors, including the vehicles' characteristics, drivers' profiles, and coverage options. That means there may be some situations where separate policies are actually the more cost-effective choice.

Navigating the ins and outs of a wide range of coverages from a huge number of potential insurance companies takes a lot of work. Working with an experienced broker at Morison Insurance gives you an advantage because you can rely on your licensed broker to ask the right questions and come up with the right solutions to get you the most robust and cost-effective option when you start a second car insurance quote. Ontario drivers should also remember that cheaper is not always better regarding insurance. You need to have insurance that covers you against the perils you are likely to encounter based on your risk factors, and having the lowest premiums is ultimately a waste of money if you're underinsured and end up having to pay a massive deductible when you find yourself faced with a significant unexpected expense.

Does the Second Car Have to Be the Same or Similar Value as the First Car?

It's a common misconception about second car insurance that the second vehicle in question has to be of a similar value as the first vehicle. This is unequivocally not true. The insurance coverage and premium for each vehicle are determined based on unique factors, including considerations such as make, model, age and usage. As a result, it doesn't matter at all if the value of the two (or more) vehicles is similar. You can still get multi-vehicle insurance for a second vehicle with a purchase price that is much higher or much lower than the price of the first car on your auto insurance policy.

Does the Second Car Have to Have the Same Driver as the First Car?

No, it doesn't. The policyholder must own both vehicles, but different people in the household can drive them, whether they're the primary driver or secondary drivers for that particular car. That makes second car insurance a viable option for couples who own two or more vehicles jointly or for someone who wants to make a car available for a teenager or adult children who still live with them.

In fact, the second car's driver doesn't necessarily even have to live with the vehicle owner full-time. Suppose you have a college-aged child attending secondary school away from home. In that case, it may be possible to adjust the terms of your second car insurance to keep your college student as a secondary driver so they can bring the car with them and have a vehicle to use while they're away studying at college or university. There are some distinct advantages to doing this. Aside from all the typical benefits you can expect from second car insurance, having your away-at-school child on your auto insurance policy helps them build their insurance history. When they're ready to get their own policy, that history will make life easier for them and may even allow them to get a lower premium than they would if they didn't have any insurance history at all to draw on.

Can Second Car Insurance Be Used for a Classic or Exotic Car?

This is possible in some cases. Insuring classic or exotic cars is different from insuring a regular car for everyday use because, naturally, there are various risk factors involved, and that's why most policyholders choose a separate classic car insurance policy. But that doesn't mean a classic or exotic car can't be covered by the right second car insurance. Ontario brokers at Morison Insurance sometimes recommend this option under the right circumstances because there are situations where second car insurance may offer the opportunity for additional coverage options that are particularly beneficial for classic, exotic, or high-value cars, such as coverage for spare parts, restoration costs or specialized equipment and agreed-value coverage.

When you insure a classic, exotic, or otherwise high-value vehicle, whether with a separate classic auto insurance policy, luxury car insurance policy, second car insurance, or another type of policy, keep in mind that insurance companies may have specific underwriting criteria for those types of vehicles, such as requirements for secure storage, limited mileage, or professional appraisals to determine the vehicle's value.

Is It Possible to Insure a Commercial Vehicle with Second Car Insurance in Ontario?

No, it's not. Second, auto insurance is a type of personal auto insurance, which means it can't be applied to vehicles that are owned by a company and used for commercial purposes. Many people believe if they have a vehicle that is insured with personal auto insurance, it can be used for both personal and commercial purposes, but this is different.

It's crucial to understand that if you were to get into a collision or another situation, that would prompt you to file an insurance claim. At the same time, if the vehicle is being used for commercial reasons, your insurance company could and likely would refuse the claim, leaving you with no coverage. Any vehicle regularly being used for commercial purposes must have coverage for business use in the form of a commercial auto insurance policy. However, it's worth noting that the occasional minor use for commercial reasons is permissible on a personal auto insurance policy. For example, if your boss at a retail store asked you to drive a few boxes of products over to another store location once, it would be fine to use your personal vehicle. But if your main job is driving products around the city on behalf of your company, you need a vehicle insured with commercial auto coverage.

Can Multi-Car Insurance Be Bundled With Other Types of Insurance?

That depends on the insurance company you have your policy in place with, but in many cases, yes, it is possible to bundle your second car insurance with other types of insurance coverage similar to how you would bundle home and auto insurance. That's particularly true for other types of vehicles, recreational or otherwise, such as motorcycles, four-wheelers and boats. But it's well worth noting that many insurance companies can bundle additional coverages such as home insurance, tenants insurance and much more with your second car insurance. Much like the benefits of second car insurance, the main advantage of bundling your insurance policies together is that you may qualify for additional discounts on your insurance premium.

Can Second Car Insurance Be Transferred to a New Vehicle Mid-Term?

Potentially, yes. If you're concerned that you may choose to purchase a different vehicle part of the way through your second car insurance term and need to transfer your second car coverage to the new vehicle, make sure to let your Morison Insurance broker know while you're in the process of adding second car insurance. Not all insurance companies will allow this, but some companies do offer the ability to transfer coverage to a new vehicle if the policyholder purchases another car during the term. If you suspect you may need or want to do this, letting your broker know in advance means they can seek out multi-car insurance coverage from an insurance provider who does allow coverage to be transferred, and then you don't have to worry about incurring costs such as early cancellation fees.

Where Can I Start A Second Car Insurance Quote in Ontario?

The answer is straightforward—call your friendly Morison Insurance broker at 1-800-463-8074. We're happy to answer any questions you may have or to start a second car insurance quote.

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.