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Can I Have Multiple Car Insurance Policies?

Published On Dec 02, 2022 10:10 AM By InsuranceDekho

Can I Have Multiple Car Insurance Policies?

Even though it is completely legal to have two insurance coverage plans on the same car, your insurance provider won't cover the same vehicle under two policies. You'll need to pay for both the first insurance policy and a second insurance plan with a separate insurance company.

Can I Have Multiple Car Insurance Policies?

To protect their luxury or vintage vehicle, some people buy a second car insurance coverage. A lot of people unintentionally have two car insurance coverages because they either forget they have another one in force or believe it to have expired.

Although it is lawful to have two car insurance plans, it is illegal to submit the same claim to two different insurance providers. You have engaged in insurance fraud if you receive payment from two different car insurance carriers for the same claim.

Legal Aspects Around The Car Insurance

The possession of two car insurance plans is completely lawful. There is no legal restriction on customers buying two insurance policies for a single car. But it's not a good idea to do that.

Typically, a second insurance policy for the same car is not offered by the same insurance provider. This is logically justified by the "unjust enrichment" concept, which enables policyholders to make money by filing duplicate insurance claims. However, some insurers could believe it is illegal to provide insurance for the same car.

However, if you wish to get car insurance for the same car a second time, you can do so from an another insurance provider. Additionally, a separate fee will be charged to you for this additional insurance coverage. Remember that purchasing two distinct plans might be costly and raise the total price for the same car.

Advantages of Buying Two Car Insurances

Purchasing two different car insurances has their own advantages which has been listed below.

  • Discounts

Buying a multi-car insurance coverage offers this as one of its main advantages. If additional cars are protected under the same policy, the insurance provider is ready to provide better rates. Since most insurers are amenable to lower prices due to the long-term relationships with clients, a fantastic deal may be acquired. Additionally, it is usually advantageous to give discounts and sign up the entire family rather than insuring only the car of one policyholder.

  • Various drivers

A named driver, or someone who drives the car in addition to the principal driver, is included in this policy. As long as any of the drivers is behind the wheel, it makes noa difference in terms of the insurance. The car must be registered in the same address as the house, and that is the sole requirement.

  • Simplified Documentation 

Managing the insurance plans for many vehicle is simpler with multi-car insurance because they are all covered under one policy. You simply need to keep track of one renewal date and pay one premium for all of your vehicles. There is less stress and paper work as a consequence.

Disadvantages of Buying Two Car Insurances

Purchasing two insurance policies have its own disadvantages too. 

  • Same Renewal Date

One premium notice period is helpful for keeping track of payments, but if you have multi-car insurance coverage, this may also be a little overwhelming. The rationale is that these insurance have much higher premium payments, which might be burdensome if you're used to dividing them out fairly among many policies.

  • Driver Protection

The cost of the policy will increase if the car's driver is deemed to be high-risk. Therefore, when selecting this strategy, it is crucial to take into account the driving behaviours and histories of all the listed drivers in addition to the primary driver. Any information withheld might cause issues or result in a complete payment denial.

Conclusion

In conclusion, purchasing two overlapping insurance policies for the same car is not against the law, but it just causes confusion and unnecessarily long claim processing times. In other words, it's not against the law to get insurance for the same car from two different firms at the same time. However, it may surely lead to paying exorbitant costs and make filing claims more difficult. It's really preferable if you can't make two claims for the same car accident. Therefore, it would be prudent to just avoid having two insurance policies and get a Comprehensive Policy that can insure your car in a variety of situations.

Also Read: IRDAI Fixes Latest Premiums For Third-party Bike And Car Insurance

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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