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Cottage and Seasonal

Difference Between Car Insurance and Cottage Insurance

Difference Between Car Insurance and Cottage Insurance

Buying a cottage and a new car this year, or just looking to find a way to save on both? Learn about the difference between car insurance and cottage insurance here and what you need to know to find the best rates for both.


To determine the type of coverage you need, insurers will look at how often the property is occupied and how frequently you rent it out. In many cases, your cottage can be listed on your home insurance as a secondary or seasonal property, but some companies will only cover you if you already have home insurance with them.

With car insurance, insurers will also look at how you use the car. They will factor in if you use it daily or occasionally, and if you will be adding someone to the insurance as an occasional driver. If you plan to use the car for work, you’ll also have to inform the insurance company. They’ll also base your premium on your age, experience, sex, as well as your driving record.


The type and location of the cottage you want to insure will also matter to insurance companies. If it’s in a flood-prone zone, you may experience higher rates. If you have a wood stove or outdated plumbing, it could increase your risk and boost up your premiums.

To determine your car insurance premium, the insurance company will look at the model, year, accessories and repair cost of the vehicle. If the vehicle is on a watch list of commonly stolen cars or is a high-risk sports car, you’ll also likely experience a higher premium.

Policy Coverage

There’s a higher risk when insuring a property that you don’t live in year-round. Damage can be much worse if a pipe bursts and nobody is around to turn the water off. That’s why cottage insurance is normally issued as a named perils policy. That means you’ll have insurance for specific outlined risks such as fire and smoke damage, but you will have to pay more to include water damage or vandalism. There may also be a number of exclusions that are not covered that you should be aware of, such as septic backup, detached private structures, and damage to campers or trailers on the property. And many policies will also have a limit on the contents that you store there, so you must find out what’s covered before signing on the dotted line.

When it comes to auto insurance, most policies will include mandatory liability coverage, accident benefits, and damages to the vehicle. However, the policy may not include specified perils like theft or damage from fire, windstorms, or impact from an animal. Collision and comprehensive coverage are often separate policies, and the price may greatly vary depending on the coverage needed. If that’s not confusing enough, different insurers will include different coverages in their policies, so it’s important to talk to a broker who can help you understand what each policy covers and what you need based on your lifestyle.

You Can Combine Them

You may be able to combine your auto insurance, home insurance, and cottage insurance together. Talk to an insurance broker today to find out how you can create a comprehensive insurance policy that will allow you to save!

Reach out to us at Rowat Insurance to find all the best deals on combined insurance plans. Our brokerage works for you – not the insurance companies, and we’ll do what it takes to find you the best coverage for you and your family!

Rowat Insurance

Insuring Ontario and Quebec since 1955. Trust Rowat Insurance Brokers to look after your home, auto, business and life insurance needs. We always guarantee fast, friendly service and highly competitive premiums. As brokers, we are entirely independent from Insurers and Financial Institutions; we will work with you to analyze and advise on risk, and customize the coverage that is right for you.