Wednesday, June 15, 2022

Can You Have Two Policies Car Insurance

Don't Miss

Survey: 48% Of Consumers Think Car Insurance Rates Are Fairexcept For The Particulars

Can You Have Multiple Life Insurance Policies

Car insurance rates have been steadily rising for decades, except for a sharp dip in 2020, when auto insurance companies offered refunds and credits in order to provide financial relief for customers dealing with pandemic-related income drops and to account for the deep reduction in driving.

Over the years, spiking medical costs and increasingly expensive car repairs have conspired to continually push up what we pay for car insurance. But for the most part, consumers think that auto insurance rates are fair or have no strong feelings about them. A new survey by YouGov for Forbes Advisor found that 48% of adult Americans think that car insurance rates are fair or very fair. Another 18% are on the fence, judging rates to be neither fair or unfair.

Of the 31% who judge car insurance rates to be unfair or very unfair, half nonetheless took no action in the last 12 months to seek a solution. About one-third say they at least got an insurance quote from a different company, and 11% switched companies. A notable portion say they reduced their overall auto insurance coverage in the last 12 months.

While almost half of Americans think car insurance rates are fair, a closer look under the hood reveals that fairness quickly drops when people are asked about specific pricing factors that are commonly used in setting car insurance rates.

Will I Get Paid Twice If Im Double Insured And Need To Make A Claim

No, it doesnt work like that. Claiming the full amount from more than one insurance provider is considered fraud. You can only make one claim.

If youre double insured and you make a claim, the two insurance providers might decide to use something called a contribution clause. This means they split your claim between them and pay a proportion of it each. As well as being an administrative headache for you, it could also mean your premiums go up when its time to renew your home insurance.

A contribution clause will be outlined in your policy documents. It will explain how much of the share your insurance provider will pay in the case of double insurance.

Disadvantages Of Dual Policies

Most experts do not recommend having two insurance policies for the same vehicle. You will have to pay two separate premiums, which is very expensive, for no added benefit. A claim can also become quite complicated in this situation for a few reasons, according to

  • Your two insurance companies will need to agree with one another about who will cover what part of the claim, which can dramatically extend the amount of time it takes for you to receive a settlement.
  • Your premium costs from both insurers will rise after a claim.
  • You could lose your good driver discount on both policies if applicable.

In addition, each insurance policy may require you to add every driver in your home to your coverage as well as every automobile parked at your household. This can significantly increase your cost of auto insurance. For example, if you live with a significant other, you can save money and follow insurer requirements by sharing a single car insurance policy.

The website Zacks notes that when you renew your vehicle registration, the Department of Motor Vehicles in your state could alert both insurance companies about the dual policies. In this case, one or both providers could cancel your coverage.

Usually, expanding your coverage makes more sense than purchasing two insurance policies. For example, you can exceed your state’s requirements for liability insurance and add optional types of coverage like comprehensive, collision, rental car, and roadside assistance.

Don’t Miss: Does Parking Ticket Affect Credit Score

Do All Drivers In A Household Have To Be Insured

Car insurance companies request the names of your household and whether theyre excluded from the policy. With that information, the insurer sets your auto insurance rates.

You should also notify your insurer if any of your children not living with you occasionally drive your vehicles. Insurers dont always require that you add occasional drivers, but its a good idea to check.

Requirement Of Insurable Interest

Can You Have Two Insurance Policies On One Car?

In order to insure something, whether its a life, a home or a car, you have to have what the insurance industry calls insurable interest. Basically, it means you stand to lose something if the item in question is damaged or destroyed. In the case of a car, the owner usually has an insurable interest. Your neighbor wouldnt be able to insure your car because it wouldnt affect him financially if anything happened to it. There are some scenarios in which more than one party can have insurable interest in a car though, such as co-signors and lien holders. If the car is wrecked, for example, a co-signor could be held accountable for any amount still owed on the vehicle, and the lender could be forced to take a loss if that balance cant be recovered.

You May Like: Does Home Insurance Cover Foundation Repair

What Are The Requirements For A Multi

These policies come with a pretty simple requirement, you need to insure two or more passenger vehicles on the same auto insurance policy. Its that simple.

In most cases, the most basic rule is that all of the cars must be located at the same address. After that, car insurance companies rules vary. Some insurers offer a discount only if the insured autos are in the same household and insured by related parties. Other insurers only require that the cars are garaged at the same address, and it doesnt matter if youre related or not, as in roommates sharing a home.

Some insurers will go a step further and even give a multi-vehicle discount to residents at the same address even if you have separate car insurance policies with them. There may be a limit to the number of cars you can have on a single policy. Usually, the max is four or five.

When adding a car to insurance, youll need to provide your insurance company with standard info:

  • Make, model, and year of the vehicles you are adding to the policy
  • Vehicle identification number
  • Odometer reading on the vehicles
  • The name, date of birth, and drivers license numbers of other drivers you want to add to the policy

You can qualify for the discount mid-term if you place an additional car on your policy. Conversely, if you delete a car mid-policy and are insuring a single vehicle, your discount would stop.

Do You Need Multiple Policies If There Are Multiple Owners

If you buy your vehicle with a spouse, a family member, or an adult child, that doesnt mean that each owner needs to have their own insurance policy.

One of the requirements to buy insurance on a private passenger vehicle is that you must have an insurable interest. This means that a loss to the vehicle would affect you financially.

While this requirement is met when a borrower or legal owner owns a policy, you still dont need separate policies for each of the owners with a financial interest in the car. You can either buy the coverage in the primary owners name or you can add the co-signer to the policy as an additional named insured.

Recommended Reading: Does Usaa Have Pet Insurance

Take Advantage Of Multi

If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances they are willing to give you a deal if it means youll bring in more of it.

Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount however, they usually must jointly own the vehicle.

If one of your drivers is a teen, you can expect to pay more to insure them. However, if your childs grades are a B average or above or if they rank in the top 20% of the class, you may be able to get a good student discount on the coverage, which generally lasts until your child turns 25. These discounts can range from as little as 1% to as much as 39%, so be sure to show proof to your insurance agent that your teen is a good student.

Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers a 10% car insurance discount and a 25% homeowners insurance discount when you bundle them together, so check to see if such discounts are available and applicable.

You Dont Take Care Of Your Credit Score

Can you claim from two car insurance companies?

Auto insurance policy is like taking out a line of credit. The insurer trusts the insured to take the utmost care with driving and pay their bill on time.

Its a leap of faith and trust decision all in one. One of the tools insurance companies use to determine insurability and low risk factor is your credit score rating.

So, if you decide to forfeit payments on another installment loan, remember that it can affect your auto insurance down the road. Is it really worth defaulting on that furniture loan when you know you might not be able to drive when you need to?

Also Check: Does Full Coverage Cover Windshield Replacement

Erie Auto Insurance Discounts

Erie offers several auto insurance discounts, especially for safe drivers. If you have a driver under 21 years old on your policy, look for Eries discount for young drivers. If you dont use your car for an extended amount of time, you could benefit from the reduced usage discount. Other discounts include:

  • Safe driving discount: Safe drivers with a clean driving record may be eligible for a discount.
  • Car safety equipment discount: You can get a discount if your car has safety features like factory-installed airbags, passive restraint, or anti-theft devices.
  • Multi-car discount: Drivers who insure two or more vehicles under the same policy may be eligible for this discount.
  • Multi-policy discount: If you bundle other insurance types with your auto insurance, you can typically score this discount.
  • Reduced usage discount: If you dont use your car for at least 90 consecutive days during your policy period, you could be eligible for this discount.
  • Young driver discount: Do you have a driver who is under age 21, unmarried and lives with you? If so, you could save on your auto insurance policy.
  • Annual payment plan: If you pay your annual auto premium in one lump sum, you could save money on your auto coverage.
  • College credit: If your college driver is away at school without access to your car, you may be eligible for a discount.

How To Make Our Multi

The more cars you have in your family, the more you increase your risk of an accident. And, if a driver is under the age of 25, he or she is considered high risk, which may increase your insurance premium. If one of the cars youre adding to your current policy is driven by an inexperienced driver, the discounts that are associated with a multi-car policy can help offset some of those costs.

The biggest advantage of working with your Nationwide agent is that he or she can assess your current situation and see where you might need additional coverage and where you could make adjustments to save money. Because Nationwide agents understand the changing needs of families, they can tailor a policy that provides Nationwides best coverage at the most affordable price.

Not having enough auto insurance can be a costly move and cutting corners to save money up front is not encouraged. Combining auto insurance plans into a multi-car insurance policy can provide better coverage for all of your household’s cars, while the discounts for multiple vehicles help offset the costs of that better coverage.

As you work with your agent, youll be able to identify what coverage you need for all the vehicles in your multi-car policy. Contact Nationwide today to see what a multi-car insurance policy can do for you and how your Nationwide agent can help you start saving money while you stay protected.

You May Like: How To Obtain A Life Insurance License

Can You Insure A Car Twice

It’s certainly not impossible, and it’s not illegal, but that doesn’t mean that you should choose to do it.

In fact, doubling up on your insurance is not only potentially costly but it could cause real problems should you ever need to make a claim.

Contribution clauses mean that both insurers would be in contact with each other to see how much they each need to put towards your pay-out, and there’s no guarantee that they will agree. Such cases can delay your claim significantly, causing you an entirely unnecessary and avoidable headache.

Making a claim from two insurers can push up the price of your renewal significantly, as well as seeing you lose your no-claims bonus across both providers. It’s also worth remembering that you can’t claim for a full amount from multiple insurers, as that’s fraud.

One claim is all you can make, so why make it complicated by involving multiple different companies?

Install Safety & Security Devices

Can I Have Two Car Insurance Policies

While safety features like anti-lock brakes and air bags are now required by law in the U.S. for all new cars, be sure your insurer knows if your older car has such safety devicesit could save you some cash. Security devices may also help you cut your bill. GEICO offers a discount of up to 25 percent off the comprehensive portion of premiums to customers who install anti-theft alarm systems.

Also Check: Does Lightning Mcqueen Have Car Or Life Insurance

The Benefits Of Having A Multi

If you have two or more insured vehicles in your household, it certainly makes sense to have them on one policy. Generally speaking, there are three main benefits of having a multi-car insurance policy:

  • Multi-Car Discount How much of a discount you may qualify for depends on your insurance carrier however its safe to assume youll get a lower overall premium payment when you combine vehicles on one policy.
  • Most insurance carriers will offer a discount somewhere between 10-20%.
  • One Renewal Date Youll have one convenient annual or semi-annual date on the calendar to renew your coverage instead of multiple renewal dates. This may decrease the chance of having a lapse in your coverage.
  • One Payment Date Whether you pay your car insurance premiums monthly or quarterly, combining autos means combining payments. You have enough to keep track of in life having one payment date is much more convenient than keeping records on multiple vehicles and their separate premium payments.

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

Don’t Miss: Why Whole Life Insurance Is A Bad Idea

Can Two Drivers Insure The Same Car

Rather than having two vehicles insured for the same driver, can two drivers insure the same car under different policies? This could happen if a couple wants to keep their own coverage on a jointly owned car however, this can be risky and a waste of money. It would be cheaper and offer the same coverage to choose the policy with the best terms and lowest rates rather than keeping both policies in place.

Two drivers insuring the same car may be considered a form of stacking coverage, which can also open you to the risk of insurance fraud and a violation called unjust enrichment. This happens when someone has a covered loss and tries to file claims with two separate policies on the same vehicle. This could be punishable by steep fines and could even lead to jail time.

Another example of two people trying to cover the same vehicle is if an older teen driver purchases their first insurance policy, but their parents are worried the coverage will not be sufficient. In that case, consider the following:

  • If the policy is written for a car that is driven by everyone in the family, it should be a multi-driver policy that lists everyone who might drive that vehicle at any time.
  • If the policy is for a vehicle that is owned by the teen, it may be beneficial for the teen to be the sole person on the policy. This should be the only policy on this particular vehicle because of the risk of legal violations .

Which Company Offers The Cheapest Multi


While nearly every company offers some form of multi-car discount, it is impossible to say which company offers the most affordable for each kind of driver. Because there are so many factors that impact car insurance prices, the cheapest car insurance company offering a multi-car policy may also be one offering you important coverages in other areas, like for ridesharing. Experts often suggest obtaining quotes from several insurers to find the best company for you.

Recommended Reading: Does My Car Insurance Cover Broken Windows

How Can I Find The Best Price On Car Insurance

Its a good idea to shop for car insurance before you buy a car. Without car insurance in place, you may not be able to drive your new wheels off the dealers lot.

Once you decide how much car insurance you need, its time to start shopping for a policy. Prices often vary widely among companies, so its smart to compare car insurance quotes from multiple insurers.

You can find free quotes online or by working with an auto insurance agent. Independent insurance agents can provide quotes from multiple companies.

Insurance quotes are always free.

More articles

Popular Articles