Can You Have Two Car Insurance Policies? 

There are numerous reasons why someone may wonder if they are allowed to have two car insurance policies. But believe it or not, you can have two car insurance policies.  

Having two car insurance policies isn’t incredibly common, but it’s also not as unheard of as you may think it is. Although carrying two car insurance policies is completely legal, filing the same claim with two different insurers is 100% illegal, and it is a classic example of insurance fraud. 

If you’re interested in having two car insurance policies or you find yourself questioning why someone would choose to have two car insurance policies in the first place, keep reading. Let’s take a look at everything you need to know about taking on two car insurance policies. 

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Can you have two car insurance policies on different vehicles?

Carrying two car insurance policies is reasonable if you are looking to obtain insurance for a second car. A prime example of this would be if you have one car that you drive every single day as well as a sports vehicle that you only use on the weekends.  

Having separate car insurance policies could be beneficial considering you do not drive your sports car nearly as often as you use your daily driver, which you use to commute to and from work on a daily basis. So, it’s possible to obtain a more cost-effective policy to insure the secondary vehicle that you do not drive nearly as often as your primary car. 

Can you have two auto insurance policies on the same vehicle?

There are situations where having two auto insurance policies on the same vehicle may make sense. With that in mind, the same insurance company will not insure the same vehicle twice. 

You would need to obtain insurance for your vehicle from a completely different insurance company. Additionally, you will also be required to pay both insurance bills to keep your insurance active. 

If you have two car insurance policies on the same vehicle, this might only be appropriate for the owner of a classic car or a high-end luxury car. Believe it or not, carrying double insurance is also common when people forget to cancel their insurance upon switching insurance carriers. 

Advantages of having two car insurance policies

Why would anyone want to have two car insurance policies? Believe it or not, there are various advantages to carrying two insurance policies. 

You drive two different cars

If you drive two different cars, carrying two different insurance policies may be in your best interest. For example, if you drive a Toyota to and from work every single day, you may end up putting a lot of miles on your car per year. 

But if you also have a weekend car or a car you use for sport, such as a track day or off-roading, you may want to insure your second vehicle via a second insurance policy. There are many car insurance companies that offer a discount based on the number of miles you drive each car per year as well, so this may be in your best interest when it comes to your personal finances. 

You want greater protection for expensive vehicles

If you have a luxury car or a classic vehicle, you may need a secondary car insurance policy that is catered towards insuring such a unique or expensive vehicle. Following the above example, let’s say you choose to have your daily car insured by car insurance company A.

However, your classic car may be covered under car insurance company B, seeing as insurance company B specializes in classic vehicle insurance. Choosing to insure your classic vehicle with an insurance company that specializes in classic vehicle insurance may give you superior coverage, which would be coverage catered towards the needs of a classic vehicle. 

You don’t want to share an insurance policy

If you are currently sharing your insurance policy with your partner or your spouse, and they have a history of accidents or a low credit score, that may actually inflate the monthly insurance premium. Carrying independent insurance for the same vehicle may actually help each of you save money on your insurance bills. Just keep in mind that this option is contingent upon you having a better credit score and a cleaner driving history. 

Disadvantages of having two car insurance policies

As with everything in life, with every advantage, there is a disadvantage. Let’s review some of the disadvantages of carrying two car insurance policies. 

More expensive

Although there are instances where carrying two car insurance policies can actually save you money, carrying two car insurance policies will more likely cost you more money. After all, each insurance policy will need to be paid in full each month or for each billing cycle. 

Greater complications

If you are carrying two car insurance policies on the same vehicle, expect to have some delays if you ever need to file a claim. Remember, it is 100% illegal to file a claim against both policies. 

That’s because this is an example of insurance fraud. Insurance companies will do their due diligence before approving any claim, but when you have two car insurance policies, this can delay the processing time of your claims.  

Risk of violating your policy 

Make sure you fully understand what is permitted under your insurance policies from the insurance companies. Some car insurance companies may not allow you to carry more than one car insurance policy. Keep this in mind as you do not want to violate any rules that may render your car insurance inactive. 

How much does second car insurance cost?

Unfortunately, the cost of insuring a second car is unpredictable. There are various factors that influence the cost of insuring any car, including a second car. 

For example, your geographic location, credit score, driving record, how frequently you drive, the cost of the vehicle and the type of vehicle will all influence the cost of insuring your second vehicle. But generally speaking, a second vehicle won’t cost as much to insure as your primary vehicle does because many insurance companies offer multi-vehicle discounts and usage- or mileage-based discounts. 

So, should you have two car insurance policies? 

Most people do not need to carry two car insurance policies. That said, there are various reasons as to why two car insurance policies may make sense or be favorable in terms of costs.

However, if you just need to insure an average car that will be used for commuting purposes, carrying two car insurance policies is most likely not something that you need to entertain. That said, if you have an exotic vehicle, a classic car or one that you strictly only drive on the weekend, explore the possibility of a secondary car insurance policy. 

An additional car insurance policy may not only help you get the insurance you need, but it might also help you save money every month. Look into the specifics of your situation before you make a final decision. 

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