Can I have more than one travel insurance policy?
Key takeaways
Double travel insurance means having more than one active travel insurance policy
You might need double travel insurance if you travel for extended periods or engage in high-risk activities not covered by standard policies
There are risks to having double insurance, such as confusion during claims processing and potential disputes between insurers
What is double travel insurance?
Double insurance occurs when a person has more than one policy simultaneously, usually with different insurance providers. This means that if an insurable event occurs (e.g. lost luggage, medical expenses, trip cancellation), the event is covered by more than one active policy.
Double insurance applies to travel, but can also apply to home insurance and car insurance.
It is important to understand that while you might have multiple policies, you cannot claim twice for the same loss and receive double the compensation. In fact, having several policies can complicate the claims process, as costs are divided among insurers.
Is it possible to have multiple travel insurance policies at the same time?
Yes, it is entirely possible for an individual to purchase or be covered by more than one travel insurance policy for the same trip. For instance, you might have an annual multi-trip policy, and then purchase a single-trip policy for a specific journey, or you might have complimentary insurance via your credit card or bank account which overlaps with a policy you purchased independently.
Why have more than one travel insurance policy?
Travellers might end up with multiple policies for several reasons:
Different cover needs
A traveller might find that one policy covers certain aspects better (e.g. more comprehensive health insurance) while another is superior for different risks (e.g. lost luggage), leading them to combine policies.
High-risk activities
If you plan on taking part in any excursions not covered by your existing policy, such as skydiving or mountain climbing, you may consider taking out additional insurance cover that includes high-risk activities. However, in most cases an add-on to your existing policy is usually simpler than purchasing a separate second policy.
Geographical exclusions
If an existing annual policy doesn’t cover a particular destination you may need to take out a single-trip policy to make sure you’re fully covered.
Package holiday insurance
When booking a package holiday, insurance might be included, leading to duplication if the traveller already has independent cover.
Credit card insurance
Many premium credit cards offer travel insurance as a perk. If a traveller also purchases a separate policy, they would then have dual insurance.
Employer-provided insurance
Some companies provide travel insurance for employees undertaking business trips. If the employee then takes a personal trip and buys their own policy, or extends the business trip for leisure, an overlap could occur.
Lack of awareness
Simply forgetting about an existing policy, such as an annual policy, and purchasing a new one for a specific trip is a common oversight.
What are the downsides of double travel insurance?
Holding multiple travel insurance policies often leads to more complications than benefits. Some common problems are:
Administrative delays
When multiple insurers are involved, processing a claim can become significantly more complex and time-consuming. Insurers will need to communicate with each other to determine who pays what proportion of the claim.
Overlap in cover
If your two policies overlap, then you may end up paying twice for the same cover.
Contribution clause activation
Most policies contain a contribution clause, which dictates how insurers will handle a claim when another insurance is in force. This can lead to a more complicated claims process.
Potential for dispute
Disagreements can arise between insurers regarding their respective liabilities, further prolonging the settlement process.
Risk of invalidating policy
Many insurance policies require you to disclose any other relevant insurance cover you hold at the time of making a claim. Failing to do so could jeopardise your claim.
Higher excess payments
If both policies apply an excess, you might end up paying two excesses (though sometimes the insurers will coordinate to ensure you only pay one total excess related to the claim).
What is the contribution clause in travel insurance?
The contribution clause is a standard provision found in many insurance policies, including travel insurance. Its primary purpose is to prevent double indemnity, meaning it stops an insured person from claiming the full amount of their loss from multiple insurers and thereby profiting from the incident.
When a claim falls under the scope of two or more policies with a contribution clause, the clause dictates that:
Insurers will share the cost of the claim. Each insurer will contribute proportionally to the loss, based on their policy limits and terms.
The total payout will not exceed the actual loss suffered. Regardless of how many policies are in force, the claimant will only be indemnified for the true value of their loss.
The claimant will typically only need to make one claim. While you might inform both insurers, one will usually take the lead in processing the claim, and then seek contribution from the other insurer(s).
For example, if you lose luggage worth £1,000, and you have two policies, each with a £1,000 limit for lost luggage, you will still only receive £1,000 in total. Each insurer might pay £500, or one might pay the full amount and then recover £500 from the other.
The excess that you have to pay will depend on your specific policy. Sometimes you’ll have to pay two excesses, one to each insurer. Sometimes you will only have to pay one excess charge. You should check the excess clause of your policy for more information.
When might I need double insurance?
While holding multiple travel insurance policies can be very costly, it can also be beneficial under certain conditions, and give you the peace of mind that you’re comprehensively covered:
High-risk activities
If you are planning to go on a holiday that includes excursions or winter sports like skiing or snowboarding, you may need a specialist policy to accompany your existing one.
Ensuring compliance with local laws requiring specific cover
In some destinations, local regulations might mandate specific types of insurance. Holding an additional policy that meets these requirements can prevent any issues while travelling.
Insufficient annual policy
If you have an annual multi-trip travel insurance already in place, but want to take a trip not covered by your existing policy, dual insurance could be the best option. For example, if you have a multi-trip policy for Europe, but want to book a holiday to Australia. It’s still always worth checking if you can purchase an add-on to your existing policy rather than committing to double insurance.
What if I accidentally purchase two travel insurance policies?
If you realise you have accidentally purchased two travel insurance policies for the same trip, it is important to take action promptly:
Review the "cooling-off period": Most insurance policies come with a "cooling-off period" (typically 14 days) during which you can cancel the policy for a full refund, provided you haven't travelled or made a claim. If you are within this period, cancel the duplicate policy.
Compare cover: Carefully examine both policies to determine which one offers superior cover for your specific travel needs, considering factors like medical limits, baggage limits, cancellation cover, and excess amounts.
Cancel the less suitable policy: If you are outside the cooling-off period, you might not receive a full refund upon cancellation. However, it's still better to cancel the less beneficial or duplicate policy to avoid future complications. Inform the insurer of your decision.
Keep records: Retain documentation of both policies and any cancellation confirmations.
How can I avoid overlapping travel insurance cover?
To avoid overlapping travel insurance policies, you should:
Check existing policies: Before purchasing new travel insurance, review any existing policies you might have, such as annual multi-trip policies, credit card insurance, or policies offered through your employer.
Use comparison sites: When seeking new insurance, comparison websites can help you clearly see the features and costs of various policies, making it easier to select a single, appropriate option.
Consolidate: Whenever feasible, aim for one comprehensive policy that meets all your insurance needs. This simplifies the process if you need to make an insurance claim.
Declare other insurance: If you do decide to proceed with two policies for specific, rare reasons (e.g. one policy specifically covering a high-value item not covered by your main policy), disclose this to both insurers upfront, and check the policy terms and conditions carefully. This transparency can prevent issues later.
How do I compare travel insurance quotes?
Comparing travel insurance quotes is the most effective way to find a single policy that comprehensively covers your needs without the risk of duplication. When comparing, consider:
Cover limits: Ensure limits for medical emergencies, cancellation, baggage, and personal liability are adequate for your destination and activities.
Excess: Understand how much you would need to pay out-of-pocket in the event of a claim.
Specific activities: If you plan adventurous activities (e.g. skiing, scuba diving), confirm these are covered.
Pre-existing medical conditions: Disclose all conditions to ensure valid cover.
Policy exclusions: Be aware of anything the policy does not cover.
Reputation of insurer: Choose a reputable insurer with good customer service.
By thoroughly comparing options, you can select a single, robust policy tailored to your trip, avoiding the complexities associated with double travel insurance.
Frequently asked questions
Should I take out double insurance?
In most cases, there is limited benefit to taking out double insurance. You won’t get paid twice for the same claim, and in most cases having two policies can complicate matters.
In some limited scenarios, you may find that having multiple insurance policies is right for you. For example, you may have an existing policy through your bank or credit card that doesn’t cover a particular destination, or you might have an annual multi-trip policy that doesn’t cover an activity that you want to participate in.
Is it legal to have two travel insurance policies?
It is legal to have two travel insurance policies, but it’s not legal to try and claim the full amount for a claim from both insurers, as this may be considered fraud.
What should I do if my existing travel insurance policy doesn’t cover everything I need?
If your existing travel policy doesn’t cover everything you need you should:
See if you can shape the right cover for you using add-ons to your existing policy
If it’s cheaper to do so, cancel your existing policy and take out a new policy that meets your needs
If you can’t cancel your existing policy or purchase the relevant add-ons (or if it’s too expensive to do so) consider purchasing a second travel insurance policy
How do I make a claim with double travel insurance?
If you have multiple policies you only need to make a claim with one insurer, but you must tell them if you have another active travel insurance policy covering the same trip. If one policy is clearly better suited to the situation (for example, it has higher medical limits or specialist adventure sports cover), put in your claim with that insurer.
In most cases, the insurance companies will liaise with each other to work out the best way to pay out. Keep in mind that you may have to pay two excess charges.
Do I have to pay two excess charges if I have double travel insurance?
The excess that you pay will depend on the terms of your specific policy. Sometimes, you will need to pay an excess to each insurer, but sometimes the insurers will come to an agreement so you only pay once.
You can check the excess clause of your policy or contact your insurer to find out the details of your double insurance excess.
Do I need to tell my insurer if I have more than one insurance policy?
Yes, you should disclose dual insurance to both insurers. Some insurers require you to declare double insurance as part of the terms of your policy. Failure to do so may invalidate your policy.
Author
Katie Bishop
Insurance writer
Katie Bishop is an author and journalist with a decade of writing and editing experience. She has previously worked as an economics editor at Oxford University Press, and her business and finance...
Reviewer
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
