Can you have two car insurance policies for one car? 

Key Takeaways

• You can have more than one insurance policy on a single car in the UK, but this is rarely a good option - it generally occurs by mistake or misunderstanding

• You’ll be faced with higher insurance costs for two separate policies and it’s extremely unlikely you’ll be entitled to double compensation

• If you want to cover two or more people on one car, it’s more cost-effective to think about named driver insurance

Can you have multiple insurance policies on one car?

Yes, it’s entirely possible to have two or more insurance policies on a single vehicle in the UK - it’s legally permissible, however, that doesn’t mean it’s always a good idea. It might occur incidentally in different scenarios, but more often than not it’s as a result of a mistake or misunderstanding.

Why would you have more than one car insurance policy?

You might find yourself doubled up on car insurance in one of the following situations:

• Your new policy overlaps your old one: If you swap to a new car insurance provider, your new policy might overlap with your old one for a few days before it runs out

• Your old policy auto renewed: If you forget to cancel your old policy and inform your insurer you’re swapping to a new provider, your cover might auto-renew. You’ll still be able to cancel it and get a refund, but you might have to pay a cancellation fee as well as for any days you were covered

• Someone has a temporary or learner policy on your car: If you’re allowing someone else to use your car, for example lending it to a friend or allowing your child to have lessons in it, they might take out their own temporary cover

• Multiple drivers of the same car have separate policies: If multiple drivers use the same car they could all have their own separate car insurance policies

• You took out separate breakdown cover: If your car insurance policy already includes breakdown cover but you take out a separate policy anyways, you’ll be doubled up

Can two people get insurance for one car?

Yes, two or even more people can get cover for one car, but it’s not always the most economic option. Instead, we’d recommend adding multiple drivers to the same policy - this is known as named driver insurance.

What is named driver insurance?

Named driver insurance is when you add other drivers to your car insurance policy as ‘named drivers’ - they won’t be the ‘main driver’, as that will be you, or whoever uses the car the most. It’s often a cheaper alternative to taking out separate policies, and it can often make things easier to organise and keep track of too.

It’s important not to lie about who is the main driver of the car - some drivers add their children to their insurance policies as named drivers as it’s cheaper than the child getting their own policy. But if the child is the main driver, this is known as fronting. It’s illegal and can result in severe penalties.

Can I take out multiple insurance policies for multiple cars?

Yes, if you have more than one car and they’re all being used and not declared as SORN, then they will all require insurance. You can take out multiple separate insurance policies, but as with multiple drivers, it’s often not the most cost-effective option - instead, it might be worth considering a multi-car policy.

What is multi-car insurance?

Multi-car insurance is when you add multiple cars to the same car insurance policy - it’s usually more economical than insuring each car separately. However, it won’t always be possible in situations where cars need specialist cover - if they’re modified, classic, or even electric cars, not all providers will insure them.

Can I claim on two insurance policies for one car?

You won’t be able to make two claims and get two payouts for the same incident, for example if your car was stolen or involved in an accident. You might be able to choose which insurer you claim through, but it’s likely that each provider will share the cost - this is because most insurers have a ‘contribution clause’.

What is a contribution clause?

A contribution clause is when two or more insurers cover the same car, so agree to divide the cost of a claim - which will require negotiations and a lengthy process. In the event where a claim is shared between two or more insurers, it can offer a few downsides:

• It can be complicated further when the insurers don’t agree on the value of the car or the claim

• You could lose your no-claims discount on both car insurance policies

• As it will count as two claims, future car insurance costs could rise significantly

Can I get a refund if I have double car insurance by mistake?

You might be able to get a refund by cancelling one of your car insurance policies, but it will depend on the nature of the situation and the providers involved.

All policies come with a 14-day cooling off period, so if you cancel within this time you should get a refund minus the cost of however many days you were covered for. If it’s after the cooling-off period, you’ll likely need to pay a cancellation fee and might not get a full refund if you paid for the full year.

It’s worth calling your insurer to explain the situation and see if they can help or explain the next steps.

How to avoid doubling up on car insurance?

We recommend marking all expiry and renewal dates for your insurance policies on your calendar so you know when they’re due and can take the appropriate action. Also keep an eye out for your cooling-off period so you can cancel in due time if required, and double check what cover you already have before looking for a new policy.

Compare car insurance quotes

It’s always a good idea to shop around, and comparing car insurance quotes on MoneySuperMarket is an easy way to browse deals from multiple providers. All you need to do is enter a few details about your car and driving history, and we’ll show you a selection of car insurance deals tailored specifically for you and your vehicle.