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Can You Have Two Insurance Policies on One Car?

Last updated: 31/01/2025 | Estimated Reading Time: 7 minutes

Driving without car insurance is illegal in the UK. But what about having two insurance policies on one car?

Double insurance — when you have two separate insurance policies on the same vehicle — may be an intentional move or an accidental one. But, can you have two insurance policies on one car?

Let’s explore the downsides, the potential benefits, and what you can do to avoid doubling up.

In This Guide:

Can I have two insurance policies on one car?

Yes — you can have two separate insurance policies on one car. It’s completely legal in the UK and, in some cases, can be beneficial. 

That said, it can also lead to higher premiums and cause significant complications if you need to make a claim. Having two car insurance policies doesn't mean you get double the coverage or double the payouts — and attempting to claim for the same incident with two different policies can land you in legal trouble.

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Why might I have two insurance policies on one car?

Drivers often end up with double insurance accidentally, although there are instances where drivers have bought two policies intentionally.

You have multiple people using the same car

If you’re a one-car household, each driver using the car may take out separate insurance policies instead of being added as a named driver. In certain circumstances, this can help keep premium costs down and protect your no-claims bonus.

Your policies overlap

Policy overlap happens when you have two separate policies that offer the same coverage. This usually happens accidentally — breakdown cover is a prime example.
Let’s say that you take out fully comprehensive insurance with one provider and breakdown cover with another provider, not realising that your fully comprehensive insurance also covers roadside breakdown assistance. This essentially means that you’re paying twice for the same thing, which can cause insurance complications if you ever break down.

Your policy has auto-renewed

Auto-renewal catches a lot of people out and is one of the most common reasons for double insurance. It happens when you take out a new insurance policy without cancelling your old one (perhaps assuming that it would cancel automatically at the end of the year). So, when your old policy auto-renews, you end up with two separate insurance policies on the same car.

How does having multiple policies affect my insurance?

Having two or more insurance policies on the same car affects the complexity of your claims process and the cost of your premium — and not for the better.

Two people sitting at a desk with a laptop and forms.

It can make the claims process more complicated

If you need to make a claim, having two car insurance policies causes unique complications that you’d completely avoid if you only had one.

First of all, you’ll need to inform both providers if you’re involved in a car accident. And, you must make it clear to each provider that you have two separate policies. Remember, making two claims is considered fraudulent and can get you in trouble, even if it’s done accidentally.

And then there are contribution clauses to consider.

Most likely, you won’t be able to choose which insurer to make a claim with. This is because most car insurance policies have contribution clauses, meaning that the two insurers will split the cost of the claim if both policies cover the same thing. 

The two insurers communicate to decide how much your car is worth and what their contribution should be. If they disagree, it can delay your payout. 

It costs you more money

Double insurance doesn’t mean double the payout — it just means double the premium. You’re essentially paying two insurance premiums for the same amount of coverage. 

With the price of car insurance rising 82% in the last three years, this can get very expensive. 

Plus, you may be subject to higher premiums in the future. This is because you’re technically making two claims if you get into an accident, increasing your number of claims and your future premiums as a result.

Are there any benefits to having two insurance policies on the same car?

In general, no. However, there are a couple of circumstances where having two separate policies might benefit you.

The first is if one of the people using your car is classed as a high-risk driver. This could be a young driver, an elderly driver, or someone with a history of making claims.

Typically, you’d add them as a named driver on your current insurance, which is usually cheaper or more straightforward. But in the case of high-risk drivers, this option can raise the cost of your premium. Taking out a separate policy can make things more cost-effective.

It can also help you retain your no-claims bonus. For example, if a learner driver was practising in your car, they might take out separate learner driver’s insurance to protect your no-claims bonus should they need to make a claim. 

Or, if a person wanted to drive your car for a short period of time — such as a visiting family member or a student home for the holidays — they could get a temporary insurance policy to protect your no-claims bonus.

However, bear in mind that regardless of how many policies you have on your vehicle, you can only ever make one claim. This should be made with the insurance provider of the person driving the car at the time of the incident.

How can I avoid doubling up on my car insurance?

Two women sitting at a table with coffee cups while looking at a laptop.

The best way to avoid doubling up on your insurance is to thoroughly check your current policy’s coverage and auto-renewal dates.

Aim to understand exactly what your policy does and doesn’t cover. This helps you avoid accidentally taking out an additional policy when you don’t need it.

You should also double-check the expiration date of your current policy and cancel any auto-renewals. This means you can align your new policy’s start date with the end date of your old policy without accidentally doubling up. Make sure to compare car insurance options and arrange your new policy ahead of time to avoid being uninsured.

Key takeaways

Having two insurance policies on one car costs you more money, lengthens the claims process, and puts you at a higher risk of accidentally committing insurance fraud. But, if you’re sharing a vehicle with high-risk or temporary drivers, then it might be a financially viable, risk-averse option. 

If you don’t need multiple policies on the same car, avoid it by understanding what your policy covers and cancelling auto-renewals before taking out a new policy. 

FAQs

Is it illegal to have two insurance policies on one car?

No — having two car insurance policies on one vehicle is perfectly legal and you won’t be at risk of insurance fraud for doing so.

Does having two policies on one car affect my insurance premium?

Yes. If you have two policies you’ll have to pay for two premiums, raising your overall costs. It can also raise your future premiums if you need to make a claim.

Can I get a refund if I’ve doubled up on my insurance?

Sometimes. Most providers will give you a cooling-off period to allow for accidental doubling up, which entitles you to a refund. After this date — or if there’s no cooling-off period — you’ll need to check your policy’s conditions and contact your provider directly to request a refund.

Can I insure multiple cars on one insurance policy?

Yes. This is called multi-car Insurance and it lets you insure all of your vehicles under a single policy, offering convenience.

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