Your Car Insurance policy provides you with financial protection in case of accidents, theft or damage. To get the cover you need, you only need one policy.
However, sometimes there are occasions when more than one Car Insurance policy for a single vehicle exists. This is called Dual Car Insurance. But what exactly does it mean? And is it legal?
What is Dual Car Insurance?
Dual Car Insurance, also known as Double Insurance, is when one vehicle is insured under two different policies. This makes it different to Multi-Car Insurance, which is where you have several vehicles insured under one policy.
Can you have two Car Insurance policies on one car?
Yes, it is perfectly possible to have two Car Insurance policies on one car.
For example, if you have a learner driver in your household, you may want them to take out a separate learner driver policy if they want to drive your car for practice. In this case, they can take out Learner Driver Insurance. This will cover them to drive the family car under a separate policy, rather than becoming a named driver on your existing insurance. If the car was to be involved in an accident, this means they could claim on the Learner Driver Insurance. This would protect any no-claims bonus you had.
You may also accidentally end up with two Car Insurance policies if you take out a new policy without knowing that an old one has already been renewed.
However, it’s important to note that it is not necessary to have two policies on one car. Having Dual Insurance doesn’t mean that you double your cover. If you need to make a claim, you will only be able to claim for that incident on one policy. Trying to claim compensation for the same incident with both policies will be considered fraudulent.
In fact, many insurers will not allow two policies to be arranged for one vehicle. As such, at Chris Knott, we are unable to arrange insurance for cars that have an existing policy.
Is Dual Car Insurance the same as Multi-Car Insurance?
No, it isn’t.
Dual Insurance is when you have two Car Insurance policies for one car. It also typically involves different insurance providers. This means that each policy will have its own renewal dates, terms and premiums.
Multi-Car Insurance, on the other hand, is when you have several vehicles insured under a single policy.
With Multi-Car Insurance, you have one renewal date and one premium price for all of your insured vehicles.
Can two people insure the same car?
Yes, it is possible for two people to insure the same car under separate policies. Doing so can give you flexibility in certain circumstances.
For instance, it can be useful if one person is considered a higher-risk driver and the other driver does not want their premium price to be affected.
Similarly, a student may want their own policy so that they can drive a family vehicle while home for the holidays. This will protect the car owner’s no claims bonus and allow the student to take out cover on a short-term basis.
Learner drivers can also benefit from this flexibility. They can take out a Learner Driver Insurance policy and use a household’s car to practise their skills, safe in the knowledge that an accident will not affect the no claims bonus of the car’s owner.
Remember: if you do need to make a claim, only one policy will be able to compensate you.
What happens if I have Double Car Insurance?
Having Double Insurance for the same vehicle can be useful, but it can also lead to complications.
In the event of a claim, both insurance companies may need to be involved. Either one policy will pay your claim – and the insurance companies may need to decide which of them is responsible – or they may both contribute toward the costs. This can cause delays and confusion during claims processing.
Duplication also doesn’t lead to double the amount of cover. Your terms and conditions are likely to be similar on both policies. And as you can only receive one payout, it may not be financially worthwhile to pay two premiums.
Is Dual Insurance illegal in the UK?
No, Dual Car Insurance is not illegal in the UK. However, many insurers will not insure a vehicle that already has a policy in place.
Car Insurance insures both the vehicle and the driver, so it is perfectly possible for two people to have their own policies for the same car. It is also possible that one person may accidentally have two valid policies on a single vehicle.
It’s important to remember that having multiple policies on the same vehicle may not make financial sense and could create challenges during the claims process.
It is illegal, on the other hand, to claim for the same incident on two separate policies.This will count as insurance fraud.
To ensure you have the right cover, you can speak to our knowledgeable team. They will be able to find you the most suitable and cost-effective insurance solution for your specific needs.
Is it worth having Dual Car Insurance?
In some cases it may be worth having Dual Insurance.
If you have a learner driver, student driver or high-risk driver in your household, it can be useful to have two policies. This is because they will be able to drive your vehicle but they won’t impact your no claims bonus if they are involved in an incident.
Higher risk drivers are also likely to push up the cost of your policy if you add them as a named driver or take out a joint policy. To keep your own costs down, you may want to consider asking them to have a separate policy.
You may also want to think about Dual Car Insurance if you and the other driver want different levels of cover. For instance, if you want Comprehensive cover, but they only want Third Party, you could take out individual Car Insurance policies.
However, having Double Insurance means paying two premiums. This may mean that it is not a cost-effective option for your household.
You must also remember that having two policies does not double your cover. If your car is damaged, stolen or involved in an accident, you will only be able to make a claim on one policy. You will not get compensated twice.
Can I insure multiple cars on one policy?
Yes, it is possible to insure multiple cars under a single policy.
This is commonly known as Multi-Car Insurance. It is particularly useful for car collectors or households with multiple vehicles. This is because it gives you the convenience of a single renewal date.
If you have at least one classic or specialist car in your household, get in touch with our experienced team to find out more about our tailored Multi-Car Insurance policies.
Get in touch to discuss Car Insurance
If your Car Insurance is due for renewal, get in touch with our team so that we can help you to find the right insurance for the right price.
We can also tell you more about our Short-Term Car Insurance, Multi-Car Insurance and Learner Driver Insurance policies.
Simply call us on 0800 917 2274 today to learn more.
