Most people know that you need car insurance to legally drive a car. If you are caught driving without insurance, you may incur high fines, court costs, and even prison. Can I have two different car insurance policies?
Why would I have two insurance policies for one car?
It may be absurd to have two insurance policies for the same car, but it can happen.
Most drivers who have doubled their car insurance do so by accident. Double insurance for the same car is more common than you might think.
Common reasons for doubling
In many cases, drivers purchase a policy for 12 months and then assume that it will expire automatically.
However, most insurance providers will automatically renew policies. If you do not cancel before taking out a new policy, you can find two rules.
Unfortunately, this does not mean that you have double protection. But that means you can pay twice to insure the same car.
You may have two separate policies for the same thing.
This often happens with emergency insurance. Some insurers offer fully comprehensive car insurance, which includes roadside assistance.
Many drivers purchase separate accident insurance without realizing that it is already included in the car insurance policy.
Having many car insurance policies can be a sensible decision in some cases.
Car insurance policies protect you and your vehicle in the event of an accident or natural disaster, and a minimum level of insurance is required in most conditions. But can you have two car insurance policies?
There are many reasons why you might consider having two car insurance policies. In this guide, our reviewer team answers frequently asked questions about having multiple car insurance policies to help you decide if a second policy is right for you.
If you are in the process of buying car insurance, we recommend that you obtain several offers so that you can compare the scope of insurance and costs. Use our tool below to get started.
Is this legal or not?
Most insurance companies do not allow multiple policies for the same car because of what is called ‘unjust enrichment’. It’s a fancy insurance term for the idea that you should not be able to take advantage of the loss. If your car is worth $ 10,000 and is insured by two companies, you could probably receive a payment of $ 20,000 if the car was broken and you filed a claim with both companies. Although the law cannot prohibit double insurance, realizing this kind of benefit can be interpreted as a fraud and can be subject to significant penalties.