Can You Have Two Auto Insurance Policies on One Car?
Auto insurance is important because it can protect you from financial loss in the event of an accident, theft, vandalism, or natural disaster. it is also a requirement for drivers in most states. Drivers typically purchase an auto insurance policy that includes different types of coverage or covers multiple drivers in their households. however, you may find yourself in a special situation and wondering if you should have multiple policies on the same vehicle. So can you have two auto insurance policies on one car?
Is it legal to have two auto insurance policies?
It is perfectly legal to have two auto insurance policies on one vehicle. however, your insurance company may not be willing to insure the same vehicle twice. you may need to purchase a second policy from another insurer and pay both bills.
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Many drivers accidentally have two auto insurance policies because they mistakenly thought the policy had expired and bought another policy. In some cases, people have a second policy to cover their classic or exotic vehicle.
Having two auto insurance policies is legal, but filing the same claim with two different insurers is not. If you receive compensation from two insurance providers for the same claim, it’s considered insurance fraud, says motor1.com.
should you buy two auto insurance policies for the same vehicle?
Although you are technically allowed to purchase two auto insurance policies for the same vehicle, it is not recommended. Double insurance on a car may violate the policies of one or both of your insurers. Also, if one of her insurers knows that she has another policy on the same car, she can ask the other insurer to pay her claims in the future. this may result in delayed or unpaid claims.
If you live with a partner, you may be wondering if you should add your partner to your auto insurance policy or have two policies. If they are members of your household, your auto insurance provider may want to add them to your current policy. Since adding another driver to your policy can potentially increase your premium, it is recommended that you share a policy with your partner. doing so also makes you eligible for a multi-vehicle discount.
If your partner doesn’t live with you, you may already have protection under the “permissive use” clause in your auto insurance policy. this clause allows drivers who do not live with you to use your car with your consent. Different insurers may have different “permissive use” clauses, but your partner will usually be covered if they live elsewhere.
You should be aware that your partner may not be covered by the “permitted use” clause of your policy if you don’t have auto insurance from another carrier. Plus, if they drive your car more than 10-15 times a year, you’ll need to add them to your policy.
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It may be better for your partner to have a separate auto insurance policy if they don’t live with you. If your partner has a bad credit score or a poor driving record, adding them to your policy will likely cause your car insurance premiums to go up. Another good reason to have two auto insurance policies is that you or your partner owns an expensive vehicle. In this case, adding one person to the other’s policy may increase your rates.
what are the disadvantages of double coverage?
When you own a car with someone and you each purchase auto insurance on that car, double coverage occurs. if both are covered by a single policy, there is nothing to worry about. However, if you buy a Geico policy and your co-owner has an Allstate policy on the same car, confusion can arise.
According to pocketsense, the problem with having dual coverage is that it can be difficult to determine which insurance company should pay for damages in the event of an accident. If you have dual coverage and rent a vehicle, it’s clear that your auto insurance company will pay for everything if you’re involved in an accident. however, if you are a co-owner of a vehicle and have two policies, things are not so clear cut.
Under normal circumstances, you will file a claim with your insurance company if you are in an accident. however, if another friend uses the vehicle and has an accident, he may not know who to contact with his insurer. In another example, let’s say someone hit your parked vehicle and fled the scene. What should you do if you and your co-owner are in the vehicle when the accident occurs?
Is it better to have only one auto insurance policy?
When you have two auto insurance policies, you run the risk of violating your auto insurance company’s policies. You may also violate a certain clause in your policy. Also, your insurance provider may think you intend to get rich. If both insurers take this stance, they may refuse to pay your claim in the event of an accident, which can put you and your co-owner in a bind.
To avoid confusion and non-payment of claims, it is recommended that you and your co-owner insure the vehicle under one policy. you can get both of your names on the policy and share the cost.
How does an insurer identify auto insurance fraud?
Having double coverage doesn’t necessarily mean you’re trying to commit auto insurance fraud. According to Auto Insurance Comparison, an insurance company must be able to prove the following in order to obtain restitution for unjust enrichment:
- the policyholder has benefited at the expense of the insurance provider.
- the policyholder knows that they have benefited from the claim payment.
- the policyholder has retained the benefit even though they are aware of the earnings.
Although having two auto insurance policies on one vehicle is not illegal, it can cause confusion that can lead to an unpaid claim. therefore, it is recommended that you try to avoid double insurance for a vehicle unless it is really necessary.
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Check this out if you need more auto insurance information, tips or resources.
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