Can you have two insurance policies in one car? Let’s take a look at the question.
There are cases where people get their car insured by two companies. Funny enough it is common to do so. In some cases, the person may not know his or her car is being insured by two different companies while others may know.
However, you must know that having your car insured by two different companies is highly expensive as you get to pay two separate premiums for it.
In this article, we would discuss on possibilities of having your car insured by two different companies.
Common Causes of Doubling Up
Below are the causes of having your car insured by two separate companies:
Automatic Renewal
In a situation where a driver gets coverage that is supposed to last for a year, the driver tends to assume it will automatically expire. If you bought a policy that renews their insurance your car will be renewed automatically even without your consent.
If you do not terminate the policy and get another insurance you are sure on your way to having two different insurance coverage from different companies.
Overlapping Policies
Another possibility of having two separate policies covering the same thing is with breakdown coverage.
If you do not study or review your insurance policy well you may fall victim to having two different coverage as some insurance companies offer car insurance that covers for vehicle breakdown while others may not.
In this case, where your insurance provider does without you knowing, there is a tendency you might opt for another insurance provider that would offer the same coverage you already have.
Is it Illegal to Have Two Policies in One Car?
Can you have two insurance policies in one car? It isn’t illegal to have two insurance policies from different companies. Nevertheless, if you intend to claim two insurance companies, you should avoid claiming the full amount from both companies. Doing so is deemed a fraudulent act hence it is illegal.
Will Two Policies on One Car Affect my Insurance?
Some complications may arise if you intend to claim both companies. Below are some of the issues you may encounter:
- Both insurance providers will have to join hands on the level of contribution each one should make, for your pay-out. It becomes a problem If they disagree with your claim, your coverage will take a longer time to process.
- You may end up losing your no-claims bonus on both policies.
- It automatically increases the cost of your premiums.
How to Avoid Doubling Up Your Insurance
There are basic steps to follow to avoid doubling up your insurance.
As indicated above, you have to make sure you study the terms and conditions of any policies you have by paying attention to when your policy expires and any auto-renewals.
Also, ensure you cancel your previous or existing policy before opting for another to avoid auto-renewal.
Is it Better to Have Just a Single Auto Protection Policy?
Having two auto insurance coverage policies might make you abuse the policies of your vehicle insurance agency.
There is a tendency you go against an important aspect of your policy.
Likewise, both protection suppliers might expect you intend to enhance thus they might decline to pay your claim in the cause of an accident, which will leave paying for all your compensation.
To forestall an issue of having a default of cases it’s encouraged that you and your co-proprietor get the vehicle guaranteed with a single policy.
There is no need for you to have car insurance with two different companies. If you look through the terms and conditions section of your policy it will give you knowledge of what will if there is duplicate coverage. It either says that one policy is more important or that claims are paid out on an equal level.
Instead of purchasing another policy, you can save up the money to increase your limits on the first policy.
Conclusion
Can you have two insurance policies on one car? The answer is yes but it is not recommended. It is no use having vehicle insurance with two different organizations. There is no utilization obtaining a similar strategy for one vehicle it is a misuse of cash and you would rather not do that right?
If you’ve already found yourself in this situation, it is not too late as there is a possibility to forgo one for another.
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