If you bank with TD or RBC, you've likely seen offers for their insurance products. Both major Canadian banks offer car insurance in Ontario, and customers often wonder how they compare. This guide explains how TD Insurance and RBC Insurance work and what to consider before choosing a bank-affiliated insurer.
Understanding Bank Insurance Models
Before comparing TD and RBC Insurance, it's important to understand how bank-affiliated insurance works in Canada:
What "Bank Insurance" Actually Means
TD Insurance and RBC Insurance are not typical insurance companies. Instead, they operate as "affinity partners" or distributors. This means:
- They Don't Underwrite Policies: The actual insurance policies are underwritten by other insurance companies.
- They Distribute Insurance: TD and RBC act as distribution channels, selling insurance under their brand.
- Partner Insurers Handle Claims: When you make a claim, you're dealing with the underwriting insurer, not the bank.
Why Banks Offer Insurance
Banks offer insurance to:
- Provide additional services to their banking customers
- Create convenience for customers who want to consolidate
- Generate additional revenue streams
- Build customer loyalty through bundled offerings
TD Insurance Overview
TD Insurance (TD General Insurance Company) offers home and auto insurance across Canada.
How TD Insurance Works
- Policies are underwritten through TD General Insurance Company and partner insurers
- Direct-to-consumer model—you deal directly with TD Insurance
- Available to both TD Bank customers and non-customers
- Online quotes and purchasing available
Potential Benefits for TD Customers
- TD Banking Discount: May offer discounts for TD banking customers.
- Convenience: Manage insurance alongside your banking.
- Payment Options: Easy payment through TD accounts.
- Bundling: Potential savings for bundling home and auto.
Coverage Options
TD Insurance offers standard Ontario auto coverage:
- All mandatory Ontario coverages
- Optional collision and comprehensive
- Rental car coverage
- Accident forgiveness
- Family protection coverage
RBC Insurance Overview
RBC Insurance offers insurance products through partnerships with insurance underwriters.
How RBC Insurance Works
- Insurance is underwritten by partner insurance companies
- RBC acts as a distribution partner
- Direct-to-consumer model
- Available to both RBC clients and non-clients
Potential Benefits for RBC Customers
- RBC Rewards: May earn RBC Rewards points on premiums.
- Multi-Product Discount: Potential savings for RBC product holders.
- Convenience: Manage alongside your banking.
- Payment Flexibility: Various payment options through RBC.
Coverage Options
RBC Insurance provides standard Ontario auto coverage:
- All mandatory Ontario coverages
- Optional collision and comprehensive
- Rental car coverage
- Various optional endorsements
Comparing TD vs RBC Insurance
Similarities
- Both are bank-affiliated insurance distributors
- Both use partner insurers for underwriting
- Both offer direct-to-consumer purchasing
- Both provide standard Ontario coverage options
- Both may offer discounts for their banking customers
Key Considerations
When comparing TD and RBC Insurance, consider:
- Your Banking Relationship: Discounts may vary based on your products with each bank.
- Actual Rates: The only way to compare is to get quotes from both.
- Service Experience: Research customer reviews for each.
- Underwriting Partners: Understand who actually provides your coverage.
Pros and Cons of Bank Insurance
Potential Advantages
- Convenience: One-stop shop if you already bank with them.
- Customer Discounts: May get better rates as an existing customer.
- Rewards Integration: Possibility to earn points or rewards.
- Easy Payments: Automatic payments from your bank account.
Potential Disadvantages
- Limited Comparison: You only see their rates, not how they compare to the market.
- Indirect Relationship: Your actual insurer is a partner company, not the bank.
- May Not Be Cheapest: Banking discounts don't guarantee the lowest rates.
- No Broker Advocacy: Direct model means no broker to advocate for you.
Alternatives to Consider
Before choosing bank insurance, consider other options:
Insurance Brokers
Independent brokers can compare rates from multiple insurers, potentially finding better rates than either bank offers.
Direct Insurers
Companies like Sonnet, belairdirect, or CAA Insurance sell directly and may offer competitive rates.
Traditional Insurers
Major insurers like Intact, Aviva, and Economical (through brokers) may offer competitive rates.
Making Your Decision
To determine if TD or RBC Insurance is right for you:
- Get Quotes from Both: Compare actual rates, not just perceived convenience.
- Compare to Other Insurers: Don't assume bank insurance is the best deal.
- Consider Service Needs: Do you value the convenience of banking integration?
- Research Claims Experience: Look into customer reviews for claims service.
- Evaluate True Costs: Factor in all discounts to see the real comparison.
Compare All Your Options
The best way to know if TD or RBC Insurance offers competitive rates is to compare them against other Ontario insurers.
Get your free car insurance quote and compare rates from multiple Ontario insurers to find your best option.