Can I Have Two Car Insurance Policies from Two Different Companies?
Car insurance is essential as it protects a car owner from financial losses in case of an accident, theft or a natural disaster. It is also a mandatory requirement to legally ply on the roads of India. Usually, a driver purchases one insurance policy to cover multiple damages that his/her car may incur. However, in certain scenarios, you may wonder if you can buy car insurance from two different companies. Here is the answer!
Is It Illegal to Have Two Insurance Policies?
Having two insurance policies for your four-wheeler is not illegal in India. However, it is also not advisable to buy car insurance from two different companies.
A single insurance company does not offer two different policies for the same car. While some insurers may reject dual policy applications due to "unjust enrichment", others may find it unlawful to sell a new policy for the same car.
Besides, some may also sell two policies as a fraudulent means to earn more premium.
Therefore, you may have to purchase a second policy from another motor insurance company and pay the premium for both policies separately. You can also accidentally purchase two different insurance policies through overlapping car insurance policies or policies that renew automatically. For the unversed, overlap car insurance policies usually occur when a car owner switches between two policies. Closer renewal dates may also be the cause of policies overlapping by a few days or more.
However, paying for two separate insurance policies for your car will be twice as expensive. Moreover, if you plan to receive compensation from two insurance companies for the same claim, it will be considered unlawful.
Should I Buy Car Insurance from Two Different Companies?
While it is legal to buy car insurance from two different companies for the same vehicle, it is not recommended. If you purchase two insurance policies, you may violate the terms of one or both insurance companies.
Moreover, if either of the insurance companies comes to know about the second insurance policy, they may ask the other insurer to pay for your claims in future. This can result in significant delays or unpaid claims. You can also not claim the entire amount from both the insurance companies as it will be a fraud. You can claim and receive compensation from only one insurance company.
In the end, purchasing two insurance policies will not only lead to more premiums but can also cause unnecessary delays in claims. So why buy two different companies if one claim is all you can make?
Is Double Insurance Ever a Good Idea?
As stated above, double car insurance policies do not increase the value of your insurance cover. It only results in an increase in the amount of premium to be paid. Thus, having double vehicle coverage is not an economically viable option.
Few disadvantages of having double four-wheeler insurance policies include:
- Having two insurance policies may result in a delay in the payment of claims.
- Whether a car is insured for one or more policies, the compensation can be claimed from one policy only. An increase in the number of policies won't increase the value of your insurance cover.
- Purchasing more than one insurance will also result in unnecessarily paying too much premium.
Thus, getting double coverage from multiple car insurance companies is complicated and definitely not a good idea.
How Can I Avoid Purchasing Two Insurance Policies for My Car?
There may be certain instances when you may end up accidentally purchasing two insurance policies for the same vehicle. However, there are some ways to avoid buying four-wheeler insurance from two different companies. These are:
- Avoid overlap car insurance by thoroughly examining every detail of your existing four-wheeler insurance policy documents especially during the time of renewal.
- Make sure that you are not doubling up your coverage without checking for the breakdown cover. You can also purchase a breakdown add-on cover instead of buying two different policies.
- Check your renewal date very carefully to avoid overlapping car insurance policies.
- In case you want personal accident cover for people other than drivers, buy an additional passenger add-on cover instead of purchasing two policies.
You May Also Read: One Car Insurance- For Multiple Cars
Can I Have Two Insurance Policies on Different Cars?
Having two motor insurance policies on different cars is legal. You can do so if your existing insurance provider does not provide coverage for one of your cars, such as a luxury car.
However, having two car insurance coverage on different vehicles can cost you more money. It may also be cumbersome to manage the renewal of multiple insurance policies.
To overcome this situation, you can purchase a multi-vehicle policy or motor floater policy, which covers multiple vehicles under one motor insurance policy. It not only helps you to save time but also reduces hassle and paperwork.
Even though buying car insurance from two different companies isn’t illegal, it can result in confusion and excessive premium. Moreover, it is unlawful to file claims from two insurance companies in case of an unexpected event, such as an accident. Therefore, it is recommended to avoid buying double coverage for your car and save yourself from unnecessary hassle.
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