Personal Finance

Insurance...2 questions

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  • Jul 19th, 2020 8:56 am
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[OP]
Jr. Member
Jul 31, 2012
120 posts
27 upvotes
OTTAWA

Insurance...2 questions

If you bank with a “big bank” like RBC or TD and you buy home & auto insurance from their insurance arm.... does one department know or care that you are a customer of other departments? Is there any benefit for having multiple lines of business with big banks (aside from discounts for having a couple of insurance policies with he same company)

Does anyone have any good experience with CAA Insurance? A broker has provided a decent rate.

Seems like online reviews for all companies are negative, doesn’t matter which company it is.
Last edited by MoB654 on Jul 17th, 2020 10:44 pm, edited 1 time in total.
9 replies
Deal Expert
Aug 2, 2001
18002 posts
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With TD I have never been told about a discount for banking and insuring with them.

Online reviews for insurance companies are often poor because people do not pay attention to their coverage. Insurance is complicated - but many just leave it up to chance that they won't make a claim rather than try to understand. These are likely the majority of negative reviews, as there is quite a thorough escalation system to ensure you get what you are entitled to (not necessarily what you want).
Deal Fanatic
May 5, 2008
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Winnipeg
Td insurance offers big discounts with employer plans.
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Oct 13, 2007
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Edmonton
MoB654 wrote: If you bank with a “big bank” like RBC or TD and you buy home & auto insurance from their insurance arm.... does one department know or care that you are a customer of other departments? Is there any benefit for having multiple lines of business with big banks (aside from discounts for having a couple of insurance policies with he same company)
No!
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Dec 24, 2007
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BC
MoB654 wrote: Is there any benefit for having multiple lines of business with big banks (aside from discounts for having a couple of insurance policies with he same company)
Nope..if there was a benefit you would been inundated with deals to "bundle" their products like the cable companies. So best to shop around.
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Aug 18, 2005
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Burlington-Hamilton
MoB654 wrote: If you bank with a “big bank” like RBC or TD and you buy home & auto insurance from their insurance arm.... does one department know or care that you are a customer of other departments? Is there any benefit for having multiple lines of business with big banks (aside from discounts for having a couple of insurance policies with he same company)
I don't think that is ethical. There is something called 'coercive tied telling' and it's illegal in Canada. They cannot require you to purchase insurance from them as a condition of getting another product, and what you're suggesting is 1 step removed from this practice.

Note: They can require you to purchase insurance, but it can be from any company.
- casual gastronomist -
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Apr 5, 2016
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Jucius Maximus wrote: I don't think that is ethical. There is something called 'coercive tied telling' and it's illegal in Canada. They cannot require you to purchase insurance from them as a condition of getting another product, and what you're suggesting is 1 step removed from this practice.

Note: They can require you to purchase insurance, but it can be from any company.
OP is asking if there's benefits like discounts with having multiple businesses with one institution which they can offer and it's not tied selling. It's like bundle pricing. Same with mortgages and I hate it when people quote me tied selling when it's not. I can offer lower rates if you open bank accounts, do investments, etc. It's tied selling when I say I can't approve you for a mortgage unless you open a bank account like your example. Pricing is a whole different story and there is no tied selling with pricing. So you can have cheaper insurance rates if you have other products and it won't be considered tied selling.
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Aug 18, 2005
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bomber17 wrote: OP is asking if there's benefits like discounts with having multiple businesses with one institution which they can offer and it's not tied selling. It's like bundle pricing. Same with mortgages and I hate it when people quote me tied selling when it's not. I can offer lower rates if you open bank accounts, do investments, etc. It's tied selling when I say I can't approve you for a mortgage unless you open a bank account like your example. Pricing is a whole different story and there is no tied selling with pricing. So you can have cheaper insurance rates if you have other products and it won't be considered tied selling.
I did not say it's tied selling, I said it's 'one step removed'.
- casual gastronomist -
Sr. Member
Nov 9, 2008
755 posts
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Ottawa
No.

And often the two operate as completely separate companies. Scotia and Cibc are examples. Banking and Insurance are completely separate for these.

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