Can you have two insurance policies on one car?

Yes, you can! Doubling up on policies might seem like a good idea for extra peace of mind. However, having two insurance policies on the same car can lead to complications. It may not provide the benefits you expect.

There are two reasons why you might have two policies and they’re not always by choice.

Your policy has auto-renewed

Most insurers will contact you to give you a new quote close to the end of your term, and if you don’t inform them that you’re not going to continue with them they may just renew your policy automatically.

Overlapping policies

This can occur when you purchase comprehensive car insurance along with additional breakdown cover, as breakdown cover is often included as a feature of comprehensive policies.

Is it illegal?

Although having two insurance policies on your car isn’t illegal, trying to get a full pay out for the same accident on both policies is considered fraudulent. Trying to claim on two policies can also make the claims process a lot more complicated so getting a pay out, or your car fixed can take longer than expected.

Not really, there’s only really one reason you might want to have two policies on your car.

More than two people are using the car

You may have someone using the car that is considered high risk to insure – like a young driver or someone who may have made claims in the past. So, it might be worth considering having separate policies as it may end up more cost-effective.

When two policies cover the same risk, such as the same driver and vehicle, both policies would typcially respond in the event of a claim. The loss would then be shared between the two insurers. This is known as contribution, and you'll often find a contribution clause included in the general conditions of most policies.

Will I get double the pay out?

No, and if you try to get multiple pay outs from the same incident it’s considered fraud. All insurers communicate with each other through the Claims and Underwriting Exchange (CUE) ^{Footnote [1]}, which is run by the Motor Insurers Bureau, where they’re able to see any claims and incidents reported.

Yes! As mentioned earlier, having two different policies for one car can sometimes be beneficial, particularly if you're insuring a young driver or someone with previous claims. The best approach depends on individual circumstances and needs.