Two insurance policies on one car

If you're sharing a car, there can definitely be two (or more!) policies on one vehicle.

For example, the owner may have a full annual policy, while their family members or friends may have temporary policies on the same car for driving when it suits them.

But there's not really much point to one person having two policies of their own on the same car. It's not illegal, but there's no benefit to doing so, and it can make things trickier when it comes to making a claim.

Here’s everything you need to know 👇

How it happens

Sometimes people end up with two car insurance policies on one car by accident. One of the main ways this happens is down to auto-renewals.

If a car insurance policy is up for auto-renewal at the end of a contract, the driver needs to actively cancel the policy.

If they don’t cancel it before taking out another policy, they’ll end up with two insurance policies on one car. (But with no extra protection – more on that below!)

Another way people end up doubling up on insurance is when they have different policies that cover some of the same stuff.

For example, some people buy breakdown cover separately, not realising it's already included in their car insurance policy.

And, as we mentioned above, some cars have multiple policies when different people want to drive it. We'll discuss that in a little bit, too.

Paying twice

Having two car insurance policies on one car is a bit like paying for two meals in a restaurant but only getting to eat one.

Even though you’re paying twice for your insurance, you won’t get any extra money when you make a claim.

Insurers are really good at communicating with each other. So when you make a claim, they can find out straight away if you’re also insured with someone else.

If you are, the two insurers will decide who covers the claim or they’ll cover a portion of it each.

In the end, you’re no better off than if you’d just had one insurance policy.

You can read more about making a claim in our big Cuvva guide to car insurance claims.

Longer payouts and higher premiums

Things get a bit complicated when making a claim if you personally have two insurance policies on one car.

This is because the two insurers need to come to an agreement on how much to pay out when you make a claim.

This isn’t always easy because different insurers might value your car slightly differently. Or they might take ages to decide how to split the cost of the payout.

All of this can mean you end up waiting longer for your payout than if you had one policy.

To make things worse, it could also impact the prices you pay in the future. If you have two insurance policies on one car at the same time and need to make a claim, you’re technically making two claims.

That means you’re doubling up on claims. The more claims you make, the higher your future insurance premiums will probably be.

Fraud

All insurance is designed to give you back the value of what you’ve lost - but nothing more! Trying to get anything extra is fraud.

That’s why it’s illegal to try to get two full car insurance payouts for one claim.

Just because you pay for two policies, it doesn’t mean you can get double the payout. This would mean you were getting back a lot more money than you’d technically lost.

It’s highly unlikely you’d be able to do this anyway, because insurers can find out if you’ve got two policies on one car.

You can read about how Cuvva tackles insurance fraud here.

What about two people insuring the same car?

Two different people can insure one car with their own separate policies. Or they can be on the same policy, where there’s a main driver and a named driver.

Say someone wants to borrow your car. They could take out their own separate temporary car insurance. Or you could add them temporarily to your policy as a named driver.

It's an affordable, flexible and greener way to make the most of the car.

Get Cuvva

Whether you want temporary car insurance from as little as an hour or an annual subscription with rolling monthly payments (and no nasty fees or tie-ins!), Cuvva has you sorted.

If you use our monthly subscription, you could save up to ⅓ off your bill using Smart Pricing. It uses smart technology already on your phone to reward good drivers with insurance discounts.

Interested? Get a quote here - it only takes a second.