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Whether your child needs temporary cover on the family car, or there’s an overlap between new and old providers, there are a number of situations in which you may end up with two car insurance policies on the same car. This is sometimes known as dual car, or double, insurance.
In the UK, you can legally have two insurance policies on the same vehicle. However, if you do have two policies, you need to be careful how you go about making a claim. And not all providers will insure a car that already has a policy taken out.
Below we detail why you might have more than one policy, the benefits and drawbacks, and what to watch out for if you do double up on car insurance.
Having two car insurance policies on the same vehicle is more common than you might think:
It is completely legal to have multiple insurance policies on the same car. This includes two people having separate policies from different providers on the same vehicle. However, it is possible to fall afoul of the law if you have multiple policies and make a claim.
Specifically, you cannot claim for the full amount for the same incident from multiple insurers. To do so would be classed as insurance fraud. So, don’t go thinking that double the insurance means double the payout!
The best way to avoid doubling up on your car insurance is by being proactive at the start and end of your policy.
Before taking out a new policy, draw up a list of all the things you might want covered that sit outside standard car insurance.
Then, when comparing quotes, carefully check the terms and conditions of each provider to see if they match what you want. This includes which optional extras you can add on, and when.
By doing this, you can try and avoid the need for taking out a second car insurance policy because you feel you aren’t adequately covered.
If you want to avoid auto-renewal – that is your insurance provider automatically putting you on to a new (likely more expensive) policy when you existing cover expires – you should:
If your car insurance does end up auto-renewing, you can cancel your policy within the 14 day ‘cooling off’ period that begins once the new cover kicks in. The law dictates that this two-week cooling off period is the minimum amount of time insurance providers have to give you to cancel a new policy.
There are a few reasons why you might consider taking out two different car insurance policies. However, you should always check the terms of your existing cover before taking out another policy, to avoid doubling up unnecessarily.
If there are two drivers using the same car, and one has a better driving history than the other – for example, one driver has points on their licence and the other doesn’t – it might make sense to have two car insurance policies.
This is so the points-free driver can avoid having the price of their premium affected by the extra insurance costs associated with being seen as a higher risk driver.
If someone wants to use your car for a short amount of time, it may be cheaper for them to take out a new temporary car insurance policy instead of adding it to your existing cover.
Used carefully, there are a few benefits to having multiple car insurance policies:
Having two different car insurance policies may allow you to compensate for a lack of coverage in one with the perks of another.
For example, your existing fully comprehensive insurance may not include cover for a learner driver. Therefore you could take out learner drive insurance to allow for a learner drive to practice in your car.
You may be able to pick which policy you make a car insurance claim on in the event of an accident. For instance, one policy may include courtesy car insurance, while the other may not.
However, both insurance companies may need to be involved, which can slow down the claims process.
Let’s say you and another driver of the same vehicle have separate car insurance policies. If the other driver gets into an accident and needs to make a claim, your own no claims bonus should still be protected.
If you share a car with friends, for example, and one of them has a driving history that would be labeled high risk, you can avoid your premium increasing by taking out separate policies.
It is always worth, however, comparing the cost of two premiums versus dividing the cost of one, even if that split isn’t 50-50.
You should make sure to weigh up the downsides of having two policies before taking out dual car insurance:
Much of the time, it won’t be the best decision financially to take out two insurance policies. This is for the simple fact that two policies means two premiums to pay. And you may end up over-insured for no reason.
Really digging into the level of cover you want, and carefully reading through the terms of conditions of each potential provider, before taking out a policy should reduce the need for further insurance down the line.
Making a claim on a car with more than one insurance policy on it can complicate the claims process.
While you may be able to pick which provider you make a claim with, sometimes both insurance companies will need to be involved. And whether it’s checking that a claim hasn’t already been made with the other provider, deciding which insurer is responsible, or figuring out who pays what when contributing to the cost of the claim, this can slow the entire process down.
Although it isn’t illegal to have two car insurance policies on the same car, it is always important to carefully consider if it is the right fit for your needs:
If you accidentally end up with two insurance policies on your car, you may be able to cancel one of them. It will depend on whether you are still in the 14 day cooling off period that starts when your policy begins. If you are, you should be able to cancel that policy.
There are some benefits to holding dual insurance policies, including:
Most of the time it will be more expensive to have two policies instead of one, as you will be paying two separate insurance premiums. Before taking out another policy, you should check the terms of your existing policy to make sure it doesn’t already have everything you need.
