There are a variety of reasons someone might consider holding two auto insurance policies. In this guide, our review team will answer commonly asked questions about having multiple car insurance policies to help you decide whether a second policy is right for you.
If you’re shopping for car insurance, we recommend getting a few quotes from the best car insurance companies so you can compare their coverage and cost.
- Having two policies on the same car costs you more and usually has no benefit.
- While you may be able to have more than one policy in a household, insurers often require every driver in the home to be listed on each policy.
- Most car insurance companies offer a discount for insuring more than one car on a single policy.
Can You Have Two Car Insurance Policies Legally?
While it’s legal to have two car insurance policies on the same vehicle, one company won’t insure the same car twice. You’ll have to purchase a second insurance policy with a different auto insurance provider and pay premiums for both.
Some people have a second car insurance policy to cover their luxury or classic vehicle. Many people accidentally have two car insurance policies because they forget they have another active policy and mistakenly think it expired.
While having two car insurance policies is legal, filing the same claim with two insurance companies is not. If you get paid by two companies for the same insurance claim, you’ve committed insurance fraud.
Can You Have Two Car Insurance Policies On The Same Vehicle?
You can technically have two car insurance policies on the same vehicle. It’s not illegal, but we don’t recommend it. For starters, you’ll have to pay two separate premiums, both of which will increase if you file a claim. Additionally, double-insuring a vehicle may violate one or both insurance carriers’ rules.
If one of your insurance companies finds out you have another policy on the same vehicle, that company may ask the other to pay future claims. If the insurers cannot come to an agreement, this could delay your claim payouts or, even worse, keep you from being paid by either provider.
Can You Have Two Car Insurance Policies On Different Vehicles?
It’s legal to have two car insurance policies on different vehicles. A common reason to do this is that your carrier can’t provide insurance on one of your vehicles, such as a classic car or luxury car. However, having two car insurance policies on different vehicles generally costs you more money, so we don’t recommend it.
Many insurance providers offer multi-car discounts for insuring more than one vehicle on the same policy. And if you live in a household with other people, your existing insurance policy may require that all drivers in your home be added to your existing policy. This can raise your insurance premium, so it’s best to take advantage of the one policy you already have.
Can You Have Two Car Insurance Policies In The Same Household?
Certain situations allow there to be two car insurance policies in the same household. If someone in the household owns a classic or luxury car or another kind of specialty vehicle, they may need a different car insurance policy to cover that vehicle.
Insurance companies often require that all members of a household who are licensed be listed on a policy. If you hold two or more car insurance policies, you’ll likely need to add all of the other household members to each of your policies. Listing additional drivers can sometimes make your policy more expensive, especially if you add a young driver. Because of that possibility, it’s wise to stick with one auto insurance policy per household when possible.
Can My Significant Other And I Have Two Car Insurance Policies?
If you live with a significant other, you might be wondering whether you should add your boyfriend or girlfriend to your policy or have two insurance policies.
If that person is a member of your household, your car insurance company will likely require them to be listed on your policy. Because adding someone to your policy could raise your premium, we generally recommended that you share one car insurance policy. This might also get you a multi-vehicle discount.
If you don’t live with your partner, they may already be covered under an auto insurance company’s permissive use clause. A permissive use clause allows drivers who don’t live in your household to occasionally operate your vehicle with your consent, commonly up to 12 times a year. Each insurance company has a different permissive use clause, but your significant other will generally be covered if they don’t live with you.
If they drive your vehicle frequently (more than 10 to 15 times a year), they’ll need to be added to your policy.
There are a few reasons to keep your car insurance policies separate if you don’t live together. If you or your partner have a poor driving record or bad credit score, adding yourself or your partner to the other’s policy will likely raise car insurance rates. Another reason to have two car insurance policies would be if one of you drives a very expensive vehicle and the other doesn’t. Adding one of you to the other’s policy could increase rates for both of you.
Can You Have Two Car Insurance Policies?: Conclusion
It’s legal–and sometimes necessary–to have multiple car insurance policies. If, for instance, you have a luxury vehicle and a car you drive most days, it might make sense to have separate policies for each. You can also have more than one policy for the same vehicle, but most experts generally advise against it.
Our Recommended Car Insurance Providers
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and prices. In addition to the insurance company you choose, factors including your age, vehicle make and model, and driving history can affect your premium. So the best provider for one driver might not be the right option for you.
We recommend getting quotes from USAA and State Farm, two of the top insurance companies in our industry-wide review.
If you’re looking for a company with discounts and low auto insurance rates, USAA could be for you. USAA provides extensive coverage for military members, veterans, and their spouses and children, offering some of the lowest average premiums and best customer satisfaction reviews.
In addition to the standard types of insurance coverage, the company offers a wide variety of add-ons that includes roadside assistance to glass coverage.
State Farm is a great choice for drivers looking for quality coverage and car insurance discounts. This provider’s policy add-on options include ride-share insurance, roadside assistance, and trip-interruption coverage. State Farm policyholders can save money with discounts such as one for taking a defensive driving course and another for avoiding traffic tickets and at-fault accidents for at least three years.
How We Rate Insurers
Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:
- Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
- Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
- Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
- Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.
*Data accurate at time of publication