Can you have two insurance policies on one car?
Figuring out car insurance can be a bit confusing, especially when it comes to the idea of having two insurance policies for the same car.
Key points
- It is possible to have two insurance policies on the same car, but it can lead to complications and may not give the extra benefits you expect. Having duplicate cover often happens by accident, for example if a policy renews automatically.
- Having two policies on one car is not illegal, but you cannot receive two payouts for the same claim. Trying to claim twice for the same incident is considered fraud and can make the claims process more complicated.
- In some cases, separate policies may be considered when more than one person uses the car, such as a young driver or someone with previous claims. The right option will depend on individual circumstances and needs.
- When two policies cover the same risk, both insurers would typically contribute towards a valid claim. This means the cost of the loss is shared between the insurers rather than paid twice.
Figuring out car insurance can be a bit confusing, especially when it comes to the idea of having two insurance policies for the same car. While it might sound odd, there are a few reasons why someone might end up with dual coverage, but usually, people do it accidentally.
Can I have two insurance policies on one car?
Yes, you can! Doubling up on policies might seem like a good idea for extra peace of mind. However, having two insurance policies on the same car can lead to complications. It may not provide the benefits you expect.
Why would I have two insurance policies on one car?
There are several reasons why you might have two policies, and they’re not always by choice.
Your policy has auto-renewed
Most insurers will contact you to give you a new quote close to the end of your term, and if you don’t inform them that you’re not going to continue with them they may just renew your policy automatically.
Is it illegal?
Although having two insurance policies on your car isn’t illegal, you generally can’t receive a full payout from both policies for the same accident. Claiming under two policies can also make the claims process more complex, meaning it may take longer than expected to receive a settlement or have your car repaired.
Are there any benefits to having two insurance policies on one car?
More than two people are using the car
You may have someone using the car that is considered high risk to insure – like a young driver or someone who may have made claims in the past. So, it might be worth considering having separate policies as it may end up more cost-effective.
When two policies cover the same risk, such as the same driver and vehicle, both policies would typcially respond in the event of a claim. The loss would then be shared between the two insurers. This is known as contribution, and you'll often find a contribution clause included in the general conditions of most policies.
Will I get double the pay out?
No, and if you try to get multiple pay outs from the same incident it’s considered fraud. All insurers communicate with each other through the Claims and Underwriting Exchange (CUE) Footnote [1], which is run by the Motor Insurers Bureau, where they’re able to see any claims and incidents reported.
Can two people have two different insurance policies on the same car?
Yes! As mentioned earlier, having two different policies for one car can sometimes be beneficial, particularly if you're insuring a young driver or someone with previous claims. The best approach depends on individual circumstances and needs.
Can I get a refund if I have two policies on one car?
Some insurance providers give a grace period to allow you to cancel, but you’d need to check with each individual provider's terms and conditions.
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