Can You Have 2 Car Insurance Policies

Is It Legal To Have Two Insurance Policies For The Same Car

It isnt against the law to have two car insurance policies, so you dont have to worry about running into legal problems from having two insurance policies. You cant file the same claim twice, however, so just because there isnt a law against it doesnt mean it is a good idea to insure the same car with two separate policies.

For example, a driver who has comprehensive insurance is covered against theft, so if their car is stolen they will receive a payout from their insurance company. If that driver has two insurance policies in place on the same car, they can only file a theft claim with one of the policies. Filing a stolen car claim with both insurance companies would be considered insurance fraud and could end with jail time and heavy fines.

Filling Out An Application

You will have to provide some information when you apply for auto insurance. The insurance company uses the information to decide if they will insure you and for how much.

• How you use your car, such as for business, commuting to work, or family trips
• How many miles you drive in a year
• The years, makes, models, and vehicle identification numbers for all cars in the household
• The amount you paid for the car
• The insurance requirements if you have a loan or lease
• How long you have been driving
• The names, ages, marriage status, and driver’s license numbers for all drivers in your household
• The driving record for all drivers in your household including accidents, insurance claims, and tickets for moving violations, but not parking tickets
• Most insurance companies will order a Motor Vehicle Report from the DMVthis is the state’s official record of your accidents, traffic violations, and suspended licenses

Can You Have Two Auto Insurance Policies On Two Different Cars

You may now be wondering, can you have two separate car insurance policies on two different cars? If you own more than one vehicle, you can purchase two separate auto insurance policies to cover each car separately. However, you will be losing car insurance discounts that can lead to massive savings.

If you insure both vehicles under one single policy, you will receive a multi-car policy discount. Because youre giving the insurer more business, youll receive cheaper rates as a reward.

Sometimes, two cars have two separate policies because one is used for personal reasons, and the other is used for work. However, you can bundle commercial auto insurance policies and personal auto insurance policies with the same company for more opportunities for savings.

Also, to carry insurance on a vehicle, you must show that you have an insurable interest. That means that you could lose money if something happens to the car. Unless you are a co-owner, its hard to make that assertion.

Another thing to consider is just how difficult it would be to have a claim approved. If you have multiple people and insurance companies involved, it can take longer for either company to agree to pay a claim.

You May Like: Do You Need Car Insurance In Florida

Can You Have Two Car Insurance Policies Everything You Need To Know

Can you have two car insurance policies? Most states require you to have at least one auto insurance policy to protects you from financial loss after an accident or claim.

Can you have two car insurance policies? Most states require you to have at least one auto insurance policy to protects you from financial loss after an accident or claim. While you may think that two insurance policies mean double the payout, that’s not actually the case.

Can Two People In The Same Household Have Two Different Auto Insurance Policies

Yes, two people in the same house can have two different auto insurance policies. In some cases, like someone who lives with a roommate, both people should absolutely have separate policies. People who are living in the same space but maintain separate finances likely do not have a compelling reason to share auto insurance.

But what about spouses or parents with children who are old enough to drive? In these instances, people can choose to have separate policies, but it is often cheaper and easier to have everyone listed on a single policy. Almost every insurance company offers a multi-car discount, which means you can save money by listing all of your familys cars on a single policy.

Listing teens and young adult drivers on your policy also allows them to take advantage of discounts that already apply to your policy, like employer discounts and bundling discounts, helping keep their costs much lower than they would be on an individual policy.

Whether people in a household decide to have separate or joint insurance policies, they will still need to list anyone who lives in the home and has regular access to their vehicle as a potential driver with their insurance company. If your roommate occasionally borrows your car, not listing them as a household member on your policy could lead to your insurance denying a claim if they were in an accident.

Read Also: Who Has The Cheapest Car Batteries

Uninsured Motorist Coverage /underinsured Motorist Coverage

This covers you if you are in an accident with a driver who does not have any liability insurance, or is underinsured.

The insurance company must offer you this coverage. If you choose not to buy it, you must sign a form, called a waiver. The form says you were offered the coverage and turned it down.

• Uninsured motorist bodily injury : This pays for injuries to you and any person in your car when there is an accident with an uninsured driver who is at fault. The limits are the same as your liability coverage limits.
• Underinsured motorist :This covers limited costs for bodily injury if you are in an accident with a driver who does not have enough insurance to pay for damage
• Uninsured motorist property damage : This pays for the damage to your car from an accident with an uninsured driver who is at fault. The limit is $3,500. This only pays if the uninsured driver is identified. You may not need it if you have collision coverage.

If I Am Injured In An Accident Does My Health Insurance Pay Anything

Usually, your health insurance pays for your immediate medical care. Then your health insurance company will typically try to get back money from your auto insurance or the other person’s auto insurance.

When one insurance company tries to get money back from another insurance company, it is called subrogation.

Don’t Miss: How To Get Rid Of Roaches In Car

Purchase The Best Policy

The next step is to purchase the new plan. If your current auto insurance policy is going to expire soon, schedule the new policy to begin at least one day before your current coverage expires.

Doing this will avoid a lapse in coverage. A gap of as little as one day can increase your car insurance rates in the future, since insurance companies consider you an uninsured driver for that time. Its much better to have two car insurance policies for one day than none at all.

If you are switching companies in the middle of a policy period, simply schedule the new coverage to begin whenever you would like.

Remember to list your lender on your new policy if you have a loan or lease. The lender is a loss payee, which means that it gets paid first when your car is totaled if you still owe money. Youll likely need to get full coverage insurance, which includes collision insurance and comprehensive insurance, if you have an auto loan.

The Pros Of Multi Car Insurance

• Insuring multiple cars together can save you as much as 20% on your auto insurance policy.
• Insuring all drivers and vehicles together under one policy is extremely convenient. One policy means you can deal with the same insurance provider for all claims, and you will only have to remember one renewal date and one set of payment dates.
• Some multi-car insurance policies cover cars and drivers who are away from home for part of the year. This can be a significant advantage if one of your children is going to university and will be living away from home for part of the year.
• Even though all vehicles will be insured under the same policy, each car retains some of its own unique coverages. For example, you have the option of buying different comprehensive or collision coverage for each of your vehicles. Since these types of coverage tend to be more worthwhile for expensive cars, this is a major pro for families with cars that range in value.

Don’t Miss: How To Add Oil To Your Car

How Does A Multi

For the most part, a multi-car insurance policy works the same way as a policy with only one car on it. When you’re filling out the quote form, you’ll provide information about the cars you own and who drives them. Some car insurance companies ask who the primary driver is for each car, which is the primary vehicle for each driver, or both. Car insurance companies will automatically apply any multi-vehicle discount to your quote as you apply for it.

Some coverages are shared by every driver on a policy, while others apply only to one vehicle. For example, liability coverage is shared by every vehicle on your policy. Meanwhile, comprehensive and collision coverage can be set differently for every vehicle. This way, you can carry full protection on your brand-new Acura, without paying extra for coverage on your teen driver’s 15-year-old Toyota Camry.

Can I Add Other Family Members Cars To My Policy

Adding a vehicle to an existing insurance policy usually requires that you or your spouse owns the vehicle. If someone else owns the car, then that person needs to get his own policy for the vehicle. However, you may still be eligible for the discount with some insurers.

For instance, if your adult child resides with you and has his vehicle insured through the same carrier as your vehicles, then some insurers will apply a multi-car discount to both policies. Other carriers will not allow this, the best advice is to call your insurance agent and ask if this is a possibility.

Read Also: What Is Torque In Car

Scenario #2 Establishing A Separate Policy For A Luxury Vehicle

While most auto insurance companies offer standard coverage for everyday vehicles, some specialize in more niche products, such as luxury vehicle protection. If you own a vintage or luxury vehicle that requires unique protections, it may make sense to purchase a second policy from a luxury auto insurance company.

I Have A Vacation Home In Another State Can I Have One Car Insurance Policy

Typically, your cars should be insured in the state where they’re located.

For example, let’s say you’re a snowbird with a second home in Florida. If your car has a Florida license plate and registration, it must be insured by an auto insurance company licensed to do business in Florida, says Gusner.

If your main residence is in Ohio, for example, you’ll have to have your cars that are based there insured by an auto insurer licensed to do business in that state.

If your auto insurance company is licensed to do business in both states, you can buy all your car insurance through one company, Gusner says. By insuring several cars with one company, even if they’re located in different states, you might be able to qualify for a multi-car discount.

You May Like: What To Do When Your Car Gets Broken Into

Can You Have Two Cars With Two Different Insurance Companies

Yes, you can have two cars with two different insurance companies. However, many providers recommend getting all your vehicles covered with the same insurer to receive a multi-car discount. But, you may need two cars with two different insurance companies if you have extenuating circumstances.

Having two or more cars on a single policy is typically advantageous for a few reasons. It simplifies your payment and billing process since youll only need to correspond with one company at all times. It will also qualify you for a multi-car discount, which nearly every carrier offers. The extent of the discount varies by company, but you may be able to save up to 25% on your premiums by insuring multiple cars with one provider.

You may have to pursue coverage from two different providers if you have a classic or exotic car that needs its own specialty insurance.

You may also have two cars with two different insurance companies if youre just married or divorced. You may own two cars kept at two separate residences. One company may not let you insure vehicles unless theyre all kept at the same location, so you may have to get coverage from another provider for one of your vehicles.

Can You Have 2 Car Insurance Policies in Your Name?

Yes, you can have two car insurance policies in your name as long as you own both vehicles. You cant insure a car that isnt in your name.

Rethink your auto insurance premium with a free quote from the nation’s top companies.

What Types Of Car Insurance Are Required

Here are types of car insurance that are generally required by states.

Liability insurance: Required in most states.Car liability insurance pays for injuries and property damage you cause to others. A good rule of thumb is to buy enough liability insurance to cover what can be taken from you in a lawsuit.

Uninsured motorist coverage : Mandatory in some states and optional in others. Uninsured motorist insurance pays for you and your passengers medical bills and other expenses if someone crashes into you and they dont have any liability insurance. A related coverage, underinsured motorist coverage, helps with you and your passengers medical bills when a driver with insufficient coverage causes an accident resulting in injuries.

Collision and comprehensive insurance: Required if you have a car loan or lease. These are two separate coverage types often sold together. Collision and comprehensive insurance pay for your vehicle repair bills due to problems such as car accidents, car theft, fires, floods, severe weather, falling objects, vandalism and collisions with animals.

Personal injury protection: Required in some states. Some states use a no-fault car insurance system. In these states youll make smaller injury claims on your own auto insurance no matter who was to blame. These claims fall under personal injury protection, which is required in no-fault states and available in some others.

You May Like: How Long Does It Take To Recharge A Car Battery

Brokers Do The Work For You

Another reason to work with an insurance broker is that they do the work for you. From start to finish, a BrokerLink advisor will be by your side, taking care of everything. We will work tirelessly to obtain quotes, compare coverage options, and unlock discounts on your behalf.

This leaves room for you to sit back, relax, and spend your free time exactly how you want to be spending it.

Check Your Insurance Policy To Avoid Violations

Insuring a vehicle twice isnt illegal. An insurance company cannot prevent you from insuring a vehicle twice.

However, you may be violating the policies of one or both insurance carriers by insuring the same vehicle twice. Check your documentation to ensure your coverage remains active.

Some drivers double insure a vehicle assuming neither insurance company will find out. This may not be the case. When you register your vehicle with the DMV, or when the DMV is notified of your insurance policy, the DMV may alert both insurance companies, at which point problems may arise.

Read Also: What Makes A Car Overheat

Better Safe Than Sorry

Double insurance can happen for a number of reasons that can all seem legitimate, but ultimately its probably not worth the extra money youd be paying out. Its especially not worth it in light of the fact that you probably cant collect on both policies without risking legal trouble. Insurance laws vary between states, however, and different companies can have different policies. For instance, California allows for self-insurance while Illinois does not unless you own more than 26 cars. Schedule an appointment with your agent to look over your policies. She can make sure you have the coverage you need and that youre not paying more than you have to.

References

Should You Buy Two Car Insurance Policies For The Same Vehicle

While you’re technically allowed to purchase two auto insurance policies for the same vehicle, it isn’t recommended. Double-insuring a car may violate the policies of one or both of your insurers. Additionally, if one of your insurers knows that you have another policy on the same car, they may ask the other insurer to pay your claims in the future. This can result in delayed or unpaid claims.

If you live with a significant other, you may wonder whether you should add your partner to your auto insurance policy or have two policies. If they’re a member of your household, your auto insurance provider likely will want them added to your current policy. Since adding another driver to your policy can potentially increase the premium, it’s recommended that you share one policy with your partner. Doing so also makes you eligible for a multi-vehicle discount.

If your significant other doesn’t live with you, they may already have protection under the permissive use clause in your car insurance policy. This clause permits drivers who don’t live with you to use your car under your consent. Different insurers may have different permissive use clauses, but your partner will typically be covered if they live elsewhere.

You should note that your significant other may not be covered under your policy’s permissive use clause if they don’t have car insurance from another provider. Also, if they drive your car more than 10 to 15 times each year, you will need to add them to your policy.

Don’t Miss: How To Fix Scratches On Car