Can You Have Two Auto Insurance Policies on One Car?

Understanding the benefits of multi-car insurance

One of the biggest advantages of multi-car insurance plans are the associated discounts. Any time you insure more than one car with Nationwide, you’re eligible for a discount. When it comes to the Nationwide Family Plan, any time a vehicle is added to a policy, it increases the discount for that driver and benefits all of the insured drivers on the policy.

Finding a Multi-Car Insurance Provider That Works for You

Finding the right car insurance provider to fit your needs requires some due diligence on your part. Start by getting multi-car insurance quotes from a few reputable companies. Shopping around with different providers is the best way to effectively compare costs, coverage amounts, and the multi-car discounts that may be available to you.

In addition to checking coverage amounts and the cost after adding in multi-car discounts, ask insurance companies what other savings may be available if you ultimately select their coverage. Some insurance companies offer discounts for having other policies, like homeowners insurance or renters insurance, while others may take a few dollars off after you complete a safe driving course. These discounts can add up to significant savings, above and beyond what the multi-car discount may offer.

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How much does a multi-car insurance policy cost?

The average cost of car insurance is $1,674 annually for full coverage, but varies significantly from carrier to carrier and between individuals. Rates are influenced by multiple factors such as age, driving history, location and the condition of the car.

Because multi-policy types are so common, getting several multi-car insurance quotes is relatively straightforward. Usually, car insurance companies will ask you for the following information:

  • Make, model and year of the cars you want to include on the policy
  • Vehicle identification number (VIN)
  • Odometer reading for each of the vehicles
  • The name, date of birth and driver’s license numbers of each driver to be added to the policy

What is the unjust enrichment provision?

The conditions are written into the policy to ensure that auto insurance is used how it’s intended and that policyholders don’t manipulate the product to use it for some type of financial gain.

This is why the unjust enrichment clause can be found in the auto policy form.

Unjust enrichment is a legal term that’s used to describe that an insured party has profited by filing claims on an insured loss instead of being restored to their pre-loss condition.

If there are multiple policies for a single car and there’s a claim, it’s much easier for there to be a double recovery issue, intentional or not. Since this is the main definition of unjust enrichment, having two policies on one car can be risky.

Problems With Too Many Parties

Even though several parties can have insurable interest, it’s not necessary for each interested party to carry his own policy on the car. In fact, doing so could create significant problems when it comes time to collect. Insurance companies are like any other business in that they’re in it to make money. Accordingly, they won’t pay if they don’t have to, and introducing another insurance company into the mix could give them just that opportunity. While they’re busy fighting it out over who is supposed to pay out the claim, you could be left in the lurch. Pretty much any insurance policy can be structured to satisfy the needs of every interested party without having to double insure.

Can you ever have multiple car insurance policies?

There are only a few scenarios where it’s wise to buy two policies on one car. If a married couple is going through a divorce, each party might insure their vehicles until the marriage is officially dissolved.

Some parents buy separate policies on a vehicle their child drives to avoid rate hikes for other household cars.

Just be sure to check with the insurer before assuming they allow the double insurance before you have a claim.

If you’re not happy with the insurance premium that you’re paying, it’s time to start price shopping.

Comparison tools are free brokerage-style programs that give consumers the power to find affordable rates by using the information provided to give you instant insurance quotes.

Compare the rates with all of the best carriers and get the insurance that you can rely on.

Enter your ZIP code in our FREE tool below to get instant quotes for car insurance rates!

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Frequently asked questions

Which company offers the cheapest multi-car insurance policy?

While nearly every company offers some form of multi-car discount, it is impossible to say which company offers the most affordable for each kind of driver. Because there are so many factors that impact car insurance prices, the cheapest car insurance company offering a multi-car policy may also be one offering you important coverages in other areas, like for ridesharing. Experts often suggest obtaining quotes from several insurers to find the best company for you.

What are stacked insurance limits?

Stacked insurance can be an added benefit with a multi-car policy. In addition to the money saved from discounts, stacking may allow you to combine or “stack” the uninsured motorist or underinsured motorist coverage limits that you have on each of your vehicles. By doing this, you can typically increase your overall limits by considerable amounts.

Is it worth getting multi-car insurance?

Having a multi-car policy could allow you to easily manage coverage for multiple vehicles stored at the same household or even save on your overall premium. However, it may not always be the cheapest way to insure vehicles. For example, if one or more drivers in a family have poor driving histories, the increased risk may cause premiums to be higher than the cost of separate policies. One of the best ways to determine which policy type suits your situation is to compare the price of similar coverages from different providers.

Reasons to Consider Dual Policies

Despite these disadvantages, having two auto insurance policies isn’t always a bad idea. For example, you might need two policies if you have one vehicle for work and a different vehicle for personal use.

Sometimes, people end up with two auto insurance policies because they think another policy expired or forgot they already purchased insurance with a different company. You might also purchase supplemental coverage, such as roadside assistance, without realizing that your existing auto policy includes this benefit. Read all your policy documents thoroughly so you understand how to use your coverage. Mark expiration and auto-renewal dates on your calendar for all your insurance policies.

If you own a classic car or a luxury car, you may need coverage beyond the standard insurance policy. In this case, it may make the most sense to purchase a separate policy from others in your household from a company that specializes in insuring this type of valuable vehicle. The more expensive a vehicle, the costlier it is to insure because of the potentially high repair and replacement expenses.

You might want to avoid sharing an auto insurance policy with your significant other or spouse if he or she raises your rates. This commonly occurs if one partner has a low credit score or history of auto accidents while the other has good credit and a clean driving record.

Again, read your auto insurance policy carefully. Many insurers have a so-called permissive use clause. This allows you to provide consent for others to drive your vehicle under your insurance coverage. For example, it would cover a significant other who does not live in your residence. Usually, you will have to add someone to your auto insurance if he or she drives your car more than 10 to 15 times a year.

What are the reasons drivers consider two auto insurance policies?

Can one car have two insurance policies? Yes, drivers use several reasons when they insure the same car with two different insurance companies. But as you’ve learned, in most cases, a single policy will suffice, and a second policy is just a waste of money.

For example, perhaps you want to make sure you have adequate coverage in the event of an accident. Instead of taking out a second auto insurance policy and facing potential fraud charges, invest in more coverage options.

What does fully comprehensive auto insurance cover? The details of a full coverage policy will vary by the insurance company. However, it almost always includes your state’s minimum required level of coverage and some level of collision and comprehensive insurance.

You can also add optional coverages, like roadside assistance programs and even rental car assistance.

Or, maybe you share a vehicle with a roommate, friend, or another household member, and you both want different coverage levels on the vehicle.

However, a second policy is still inadvisable. Paying for two separate policies will cost more than splitting a fuller coverage policy between two people.

If the roommate you share your vehicle with is a high-risk driver who struggles to receive affordable insurance rates, compare rates from multiple companies to find a policy you can both afford.

If you live with your significant other, you can still both be on the same insurance policy, so there is no need for you both to carry separate policies.

You can use an auto insurance comparison tool and input the information for all of the drivers for the vehicle and the vehicle’s information. The tool will then compare your information and auto insurance desires with all available policies.

Ultimately, you and your roommate are better off coming to an agreement and splitting the costs for a single policy.

As you can see, in most instances, having two auto insurance policies on a single vehicle is not a smart investment. Instead, explore your options with a single auto insurance policy.

Can You Have Car Insurance Policies In The Same Household?

Two car insurance policies can be held in the same household for certain reasons. If someone in the household owns a classic or luxury car, they may need a different car insurance policy to cover that specific vehicle.

Insurance companies often require all members of a household who are licensed to be listed on a policy. If you hold two or more car insurance policies, you will likely have to add all of the other household members to each of your policies. Listing additional drivers can sometimes add cost to your plan, especially when a young driver is added. Because of that possibility, it is wise to stick with one auto insurance policy per household when possible.

Can The Same Car Have Two Car Insurance Policies On?

You can technically have two car insurance policies on the same vehicle, but it is not recommended. Double-insuring a vehicle may violate the policies of one or both insurance carriers. In addition, if one of your insurance companies finds out that you own another policy on the same vehicle, that company may ask the other company to pay future claims. This could cause your claim payments to be delayed or not paid by either provider.

How to get the cheapest multi-car insurance quotes

If you just want to purchase multi-car insurance as quickly as possible, you can simply call your insurance agent or go online and add your new vehicle to your policy — it’ll only take a few minutes. However, buying a new car is an excellent time to shop around for multiple quotes from car insurance companies because they constantly change how they evaluate rates, and your current company may not offer the lowest price now that you have multiple cars.

Car insurance companies have worked to make the process of getting quotes online easier, especially for multiple vehicles. But the process still involves a lot of repetitive data entry. You can speed up the process by collecting the following information ahead of time:

Information to have ready when getting a multi-car insurance policy

Car VIN numbers Approximate weekly or yearly mileage for each vehicle Who drives each car the most Driver’s license and Social Security number for each driver

For longer numbers like VINs and driver’s license numbers, you can save even more time by recording them digitally and pasting them into the appropriate fields, rather than transcribing them by hand.

What Are the Disadvantages of Double Coverage?

When you own a car with someone, and you each buy auto insurance for that car, double coverage occurs. If you’re both covered under a single policy, there’s nothing to worry about. However, if you purchase a policy from GEICO and your co-owner has a policy with Allstate for the same car, confusion can arise.

According to PocketSense, the problem with having double coverage is that it can be difficult to determine whose insurance company should pay for damages in the event of an accident. If you have double coverage and you rent a vehicle, it’s clear that your car insurance provider will pay for everything if you get involved in an accident. However, if you co-own a vehicle and have two policies, things aren’t so clear-cut.

Under normal circumstances, you’ll file a claim with your insurance company if you meet with an accident. However, if another friend uses the vehicle and gets into an accident, you may not know whose insurer to contact. In another example, say somebody hit your parked vehicle and fled from the scene. What should you do if you and your co-owner are both in the vehicle when the accident happens?

Better Safe Than Sorry

Double insurance can happen for a number of reasons that can all seem legitimate, but ultimately it’s probably not worth the extra money you’d be paying out. It’s especially not worth it in light of the fact that you probably can’t collect on both policies without risking legal trouble. Insurance laws vary between states, however, and different companies can have different policies. For instance, California allows for self-insurance while Illinois does not unless you own more than 26 cars. Schedule an appointment with your agent to look over your policies. She can make sure you have the coverage you need and that you’re not paying more than you have to.

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