Having multiple cars on one policy is one thing. But having two policies on one car is something else entirely. While you certainly can have two car insurance policies on one car, there are many reasons why you shouldn’t.
Is it possible to insure a car twice?
It’s certainly not impossible, and it’s not illegal, but that doesn’t mean that you should do it. Doubling up on your insurance is not only costly, but it could cause real problems when you make a claim.
One claim is all you can make, so why make it complicated by involving multiple companies?
When two insurers cover the same car, they share responsibility. Contribution clauses mean that both insurers would be in contact with each other to see how much they each need to put towards your pay-out, and there’s no guarantee that they will agree. Such cases will delay your claim significantly, causing you an entirely unnecessary and avoidable headache.
Doubling up your insurances with multiple policies could end up costing you a lot of money. You have to pay twice as many premiums for one single payout.
Why would you take out two policies on the same car?
Taking out multiple policies on the same car won’t allow you to claim twice for the same accident. But most of the time, having two policies on one car happens by accident.
Sometimes you have a situation where your old policy is coming to an end and a new policy, with a new insurer, is about to begin. If you’re unlucky enough to have an accident while you are double insured, things will get confusing.
Making a claim from two insurers can push up the price of your renewal significantly. It will also mean you lose your no-claims bonus across both providers.
How can I have two car insurance policies at the same time?
Doubling up and having two insurance policies is actually more common than you might think. You could take out a new policy on your car or home expecting the original policy to expire automatically.
That’s why you should always check the specifics of your cover when taking out a new insurance policy, making sure to note what is included and whether you need to cancel the cover manually when the time comes.
However, many insurance policies renew automatically, and if you don’t cancel your original policy before taking out new cover then it’s possible you could pay twice for the same thing.
Another way you could end up insuring your car twice is with separate policies that cover the same items. One of the most common ways to have overlapping insurance cover comes with roadside breakdown policies.
Some estimates suggest that nearly 1 million motorists pay for breakdown cover through a fixed-fee package account, despite also holding a comprehensive motor policy that includes breakdown cover. It’s essential to check whether breakdown cover is included when buying a policy however, as it doesn’t necessarily come as standard.
Of course, it’s not just car insurance that you can double up on. That’s why you should always check the specifics of your cover when taking out a new insurance policy, making sure to note what is included and whether you need to cancel the cover manually when the time comes.
Some credit cards and bank accounts come packaged with breakdown cover included, so it’s always worth checking what insurance you already have before taking out a new policy.
Insurance is complicated at the best of times. Plus, covering yourself twice will only delay claims and result in higher overall expense. So, before taking out any policy, make sure you aren’t already covered elsewhere and make the most of your cover.
If you have any questions about your cover and policy, get in touch. Our team are here to help.