Can You Have Two Auto Insurance Policies on One Car?

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You may think car insurance gets more complicated with the more vehicles and drivers you need to insure. Fortunately, this often isn’t the case since one policy with the right provider can usually accommodate all of your car insurance needs.

Insuring two cars is usually straightforward. You can put them both on one policy and qualify for a multi-car discount. If you’re thinking otherwise, read this information below for more details and clarity.

Can You Have Two Auto Insurance Policies on One Car?

Yes, you can have two auto insurance policies on one car, although it’s usually unnecessary. Having two car insurance policies on one car can violate the terms of one provider and complicate the claims process. It will also be more expensive than just having one policy.

It rarely benefits you to get two auto insurance policies on one car. One plan can provide you with the liability coverage your state requires and the full coverage your auto lender requires if you have one. Uninsured motorist coverage and personal injury protection (PIP) can all be added to one policy if your state requires those, too.

There are a few extenuating circumstances where double insurance coverage on a car comes up. One may be when a married couple or two people move in together and share a car. Both partners shouldn’t take a policy out on the vehicle. 

Instead, you should get one policy to cover both of you. It would be cheaper and simpler, given neither driver is a high-risk driver. One policy should almost always suffice. 

This brings us to another situation where having two plans on one car may arise: the presence of a high-risk driver. If a partner or listed driver has been convicted of a DUI, you may look into getting two separate insurance policies on one car, so the high-risk driver doesn’t affect the normal driver’s rates.

Before doing this, you may want to check with your state insurance department or your insurance provider. If your state allows it, you could just have one policy and exclude the high-risk driver from coverage.

Other than a couple moving in together or trying to work around a high-risk driver, having two insurance policies on the same car typically provides little to no added benefit. 

Why Two Insurance Policies on the Same Car Can Be Problematic

Getting two insurance policies for one car would be more expensive than having one policy. You’ll have to pay two separate premiums if you have two separate policies. This is obviously more costly than paying the premiums for one plan.

It also complicates the claims process. You can’t file a claim for the same instance of damage with both insurers. It makes it difficult to determine which insurer should cover the damage depending on your coverages. One insurance company may also try to recoup money from your other insurer during the claims process behind the scenes, which could delay your payout. Additionally, your premiums from both insurers could increase after a claim.

After a claim, the premiums on both plans could rise, meaning you’d be paying even more for no additional benefit. You’d also potentially lose discounts.

Is It Illegal to Have Two Car Insurance Policies on One Car?

It’s not illegal to have two car insurance policies on one car, although it is unusual. But, filing two claims for the same damage from both of your insurance companies could constitute insurance fraud, which is illegal. You also can’t lie to your insurance company if they ask you about double insuring a vehicle.

Some carriers may not allow you to have two insurance policies on one vehicle. If you secretly do, your insurance company can find out and void your coverage. Sometimes, your state’s Department of Motor Vehicles will notify your insurer when you renew your registration, and if your DMV alerts both companies, one could find out about the other. The same could occur with a lender if you’ve financed your vehicle.

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 you’ll 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 you’re just married or divorced. You may own two cars kept at two separate residences. One company may not let you insure vehicles unless they’re all kept at the same location, so you may have to get coverage from another provider for one of your vehicles. 

Insuring two cars with two different insurance companies may be necessary when one of your vehicles isn’t eligible for coverage from a standard carrier. This can occur with a classic, exotic, or modified car. Sometimes, these vehicles require specialized coverage due to their different risks. For instance, standard providers may not want to or be able to sufficiently cover aftermarket or hard-to-replace parts that these cars can have.

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 can’t insure a car that isn’t in your name.

Before you try to get two car insurance policies for whatever reason, be sure both carriers allow this. You’ll also need to own both cars. You won’t be able to put a policy for somebody else’s car in your name.

In most states, a driver needs to register their car at the DMV before legally using it in that state. That driver will need proof of insurance on the vehicle to register it since nearly all states require liability insurance. If that person doesn’t have their own proof of insurance on that vehicle, they wouldn’t be able to use it. This is why every person needs their own proof of insurance, and you can’t have a car insurance policy in your name for someone else’s car.

As discussed above, you’d have two car insurance policies in your name if you have two auto insurance policies for one car or two for two different cars. It’s legal, although not always helpful.

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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