What is Double Travel Insurance?
Key takeaways
Double travel insurance involves having more than one active travel insurance policy.
Scenarios where two travel insurance policies might be needed include extended travel periods, engaging in high-risk activities not covered by standard policies, and travelling to geographically excluded high-risk areas
Risks of double insurance include coverage overlap leading to wasted resources, confusion during claims processing, and potential disputes between insurers, complicating financial planning and legal situations
What is double travel insurance?
Double travel insurance occurs when a person has more than one policy simultaneously. Unlike a single policy, which covers specific risks and losses, having multiple does not guarantee double payouts. Many believe multiple policies increase compensation, but this is incorrect. In fact, having several policies can complicate the claims process, as costs are divided among insurers.
In what scenario might you need two travel insurance policies?
Longer travel periods: If you are planning a long journey, a standard policy is unlikely to cover your entire trip. Typically, these policies cover trips up to 30 days. For longer holidays, you may need to consider exploring different policies such, 90-day travel insurance if your trip extends beyond the usual coverage period.
High-risk activities: If you plan on taking part in any excursions while you are away, it's likely that they will not be covered by your policy. Activities like skydiving, scuba diving, or mountain climbing are considered high-risk and many standard policies do not cover them.
Geographical exclusions: You can check the government travel advice to your chosen location here. If you are advised against your holiday destination and still go, it is unlikely that your travel insurance policy will cover any claims you may need to make.
What are the risks of double insurance?
Holding multiple travel insurance policies can seem like a good safety net. However, it often leads to more complications than benefits. One major risk is the overlap in coverage, which can result in wasted resources. Essentially, you might end up paying for duplicate coverages that don't offer any additional benefits. This not only strains your budget but also adds unnecessary complexity to your financial planning.
Another significant concern is confusion during the claims process. When you have more than one policy, it can be unclear which insurer should handle a claim. This confusion can lead to delays in processing your claim. Such delays can be particularly stressful if you're dealing with emergencies while travelling.
Lastly, there's a potential for disputes between insurance providers. Each company may have different terms and conditions. In the event of a claim, they might disagree on who is responsible for covering what. This can lead to prolonged discussions and even legal disputes. Such situations complicate what should be a straightforward process.
When is it acceptable to have double insurance?
While holding multiple travel insurance policies can be very costly, it can also be beneficial under certain conditions. Here are some scenarios where it might be acceptable and even advantageous to have more than one policy:
High risk activities: If you are planning to go on a holiday that includes excursions or taking part in sports like skiing or snow boarding, you may need a specialist policy to accompany your existing one.
Ensuring compliance with local laws requiring specific coverage: In some destinations, local regulations might mandate specific types of insurance. Holding an additional policy that meets these requirements can prevent any legal issues while travelling.