Everything You Need to Know

Double insurance coverage car is legal in states but not a common practice for many insurance companies. Your insurance policy is designed to protect you, your passengers, and your vehicle in the event of an accident. You are expected to carry enough insurance to cover any medical bills or damage that could occur.

Since the insurance company expects you to have the amount of coverage you need, they will not provide you with two policies on the same vehicle. If you want multiple policies, you will have to purchase the second one from another provider and pay separate premiums.

Why Might You Want Double Car Insurance Coverage?

Having your vehicle covered by more than one policy is not common and, in most cases, occurs when people have luxury or classic vehicles, which can be more expensive to fix. In some cases, you may end up with two car insurance policies because you had thought one expired and purchase a new one.

Can You File a Claim with Both Companies?

While it is perfectly legal to possess two policies on one vehicle, it is considered insurance fraud if you file claims with both companies for the same accident. You can only receive payment from one of the policies for each accident that occurs, according to Zacks.

Not all insurance companies may cover luxury or classic cars with the coverages you want. This may require you to seek out a more expensive insurance policy to cover it, as stated by Carinsurance.com. That doesn’t mean that you want to pay them a more expensive premium for other vehicles in the household. If you have a second vehicle, you will probably insure it with a different company and may add basic coverage on the luxury or classic car to take advantage of multi-car discounts.

Policy Violations

You should also check with your insurance carrier to see if they allowed double policies. While it may be legal to carry double insurance, it may be a problem with your carrier. Some may view double insurance as a policy violation. Other insurance companies that allow double insurance may find out about your other policy and expect them to pay future claims first, which may cause delays in your payments, mentions Admiral.

Is it Worth Having Two Insurance Policies?

Motor1 does not recommend having two car insurance policies due to the cost. You will be paying twice the premiums and only able to file a claim with one company in the event of an accident. Having separate policies for different cars may have drawbacks as well. While you may be saving on coverage on the lesser expensive car, you will be unable to take advantage of certain discounts, such as the multi-car discount. Shop around to find the right coverages, rates, and discounts to help you find one affordable policy for your vehicles.

Will All Household Members Be on Both Policies?

Depending on your insurance company, you may be required to list all of the licensed members of the household on the policy. This will be the case for your second policy if you have one as well. Whether your policy requires it or not, it is always good practice to list everyone in the household who can drive on the policy to ensure that there is no problem with the vehicle if they end up operating one of the vehicles. Even if they are not regular drivers, they should be on the policy.

People are often hesitant to add young drivers in the household to the policy due to the increased cost. Yet, if there is any chance of them operating any of the vehicles on the policy at some point, they should be listed. Since it can be more costly to insure young drivers, it is recommended only to have one policy to reduce the overall cost of your premiums.

Even if you are not directly related to a member of your household, such as a boyfriend or girlfriend, your insurance company may still require you to add them. Since adding the person can increase the premiums on both your policies, it would be wiser to reduce down to one shared policy and take advantage of available multi-car discounts.

Permissive Use Clauses

Many insurance companies will have permissive use clauses in their contract that may extend coverage to a boyfriend or girlfriend if they are in an accident while driving your vehicle if they don’t reside in the same household as you. While some companies may have stipulations, such as having to be present in the vehicle, others will provide coverage for any situation as long as they are not considered a regular driver of the vehicle.

It is important to understand that the permissive use clause will not typically extend to your significant other since you will be considered in the same household. Your significant other will be required to maintain their own policy if they are not on yours. In any case, they should be listed on your policy if they are considered a frequent driver, which means they operate the vehicle more than 10 to 15 times a year.

Reasons to Keep Separate Policies

There are some valid reasons you would want to maintain separate car policies than your partner if you do not live in the same household. Some common reasons include:

• You or your partner have bad credit.
• You or your partner has a poor driving record.
• You or your partner is 25 or younger.
• One of you drives an expensive vehicle while the other does not.

While doubling up on car insurance is a legal option, it is not desirable for many reasons. If you have multiple policies or if you and your partner living separately each have your own policy, consider combing your vehicles into one policy. You may find significant savings in your premium rates.

Check this out if you need additional information, resources, or guidance on car insurance.

Sources:

Insure Two Cars: Everything You Need to Know | caranddriver.com

Can a Car Have Two Separate Insurance Policies by Two Different People? | zacks.com

Can You Have Two Car Insurance Policies? | motor1.com

Can you have two insurances? | carinsurance.com

Everything you need to know about doubling up on insurance and how it affects a claim | admiral.com

How to Save on Car Insurance | caranddriver.com

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