Did you know that it’s possible to double up on your car insurance? This is usually by accident, but it’s important to know how it can affect you, your finances and if you need to make a claim.
Here’s everything that you need to know about doubling up on insurance, including how to avoid it.
Can I have two insurance policies on one car?
Yes, you can actually have two insurance policies on a car at the same time.
But doubling up on your insurance is not only potentially expensive, but it could also cause real problems if you ever need to make a claim.
Something called a ‘contribution clause’ means 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’ll agree.
This means your claim could take a lot longer to solve.
Plus, making a claim from two insurers can push up your price renewal, and you could lose your no claims bonus from both providers.
Is it illegal?
It’s not illegal to have two policies on one car.
But it is illegal to make a claim from multiple insurers and get the same payout twice, as that’s fraud.
How can you have two insurance policies?
It’s actually more common than you might think.
There are a few ways it could happen:
- You could take out a new policy on your car expecting the original policy to expire automatically. But many insurance policies renew automatically, so you could end up paying twice if you don’t actively cancel the original policy.
- You could have separate policies covering the same thing. For instance, some drivers pay for specific roadside breakdown insurance, not knowing that breakdown cover is already included in their comprehensive car insurance.
- You have insurance through your credit card or bank account. Some of these financial services come with breakdown cover, travel or contents insurance which you may not be aware of.
It's always worth checking what insurance you already have before taking out a new policy, as well as checking exactly what’s included.
How can I avoid doubling up on insurance?
The easiest way to avoid doubling up on your insurance is to check the terms and conditions of any cover, credit cards, or bank accounts that you already have.
That way you can see if any cover is included elsewhere without taking out a new policy, and you’ll also know whether your current insurance automatically renews.
Another option is to look at a MultiCover policy. For instance, our MultiCover insurance brings your car, home or van together into a single policy.
That means all your cover renews at the same time, and you only have one set of documents to keep track of.
