Can you have two insurance policies on one car?

Driving without car insurance is illegal and could have devastating consequences. That’s why it’s vital that you’re properly covered at all times. At the same time, nobody wants to over-insure their vehicle.

So, can you have two car insurance policies on one car? We take a look.

Written by

Julie Daniels

Motor insurance expert

Last Updated

5 JUNE 2024

5 min read

Can you have two insurance policies on one car in the UK?

Yes, it’s perfectly legal for you to have more than one insurance policy on the same car. But doubling up on car insurance doesn’t mean doubling your cover or your potential pay-out.

Trying to get a full pay-out for the same incident from two different policies is considered fraudulent. And to avoid this type of fraud, insurance providers log all the incidents reported to them and details of any subsequent claims on the Claims and Underwriting Exchange (CUE).

Why would I have two car insurance policies on one car?

It may seem absurd to have two car insurance policies for the same car but it can, and does, happen.

Most drivers who double up on their car insurance do so by accident, and insuring the same car twice could be more common than you’d think. It usually happens for one of two reasons:

Your old insurance has auto-renewed

Drivers often take out a policy for a year, then assume it will expire automatically. But a lot of insurance providers auto-renew policies and, if you don’t cancel before taking out a new policy, you could find yourself with two. Unfortunately, this doesn’t mean you have double the cover. It means you’ll be paying twice to insure the same vehicle.

You could also end up with overlapping policies for a few days if you switch providers and don’t get the policy start and end dates synced up. But doubling up for a short period will have less of an impact on your bank balance.

You have overlapping policies

It’s also possible to have two separate policies covering the same thing. This often happens with breakdown cover.

Some insurance providers offer comprehensive car insurance that includes roadside breakdown assistance. Yet many motorists take out separate breakdown cover, not realising it’s already included in their car insurance policy.

This is why it’s so important to check the details of your car insurance policy before you take out any additional cover.

Can two people insure the same car?

It’s possible – and legal – for two different people to insure the same car. For example, learner drivers practising in their parents’ car might want to take out their own policy. That way, if they need to claim it won’t affect their parents’ no claims discount.

However, it’s usually easier and cheaper to add someone who shares your car to your policy as an additional or named driver. It could even lower the cost of your premium if they’re an experienced driver.

Alternatively, an additional driver could get a temporary insurance policy on your car if they only want to drive it for a short time. That way they won’t risk impacting your no claims bonus if they do need to make a claim.

However, if multiple people have separate policies on the same car, a claim can only be made on the policy of whoever was driving at the time of the incident.

Will two policies on one car affect my car insurance?

Paying for two car insurance policies could end up being very costly, because you’ll probably find yourself paying two premiums for one pay-out.

It could also become seriously complicated if you need to make a car insurance claim.

Firstly, attempting to claim on both policies could be seen as attempted fraud. You’ll need to explain to both insurance providers that you have a second policy.
In some cases, you may be able to choose which policy to claim through. But many policies will have what’s called a ‘contribution clause’, which means that the pay-out will be split between them.

In that case, both insurance providers will need to agree on your car’s value, and how much each should contribute to your pay-out. If they disagree, your claim could take far longer to process.
Because you’re effectively making two claims, it could have a greater impact on the cost of your premiums at renewal.

Can one person have two car insurance policies on two different cars?

Yes, it’s certainly possible to take out separate insurance policies for two or more different cars.

In some cases, it may be cheaper to take out a separate policy on a second car if:

One of the cars is a specialist vehicle, for example a classic car, or has expensive modifications.
One of the vehicles you want to cover is in a much more expensive car insurance group.
You want to add a higher-risk named driver to one policy – for example, a young driver.

Otherwise, you may find you can save money by taking out a multi-car policy. Insurance providers will often offer a discount for each car added to the policy and it could be more convenient too. But it’s not always your cheapest option, so it’s worth comparing your options.

You can’t compare multi-car policies at Compare the Market, but we can help you find quotes for separate car insurance policies.

Compare car insurance

How can I avoid doubling up on my car insurance?

To avoid doubling up and paying twice for your car insurance, make sure you read your policy’s terms and conditions. Add any expiry or auto-renewal dates to your calendar so you can leap into action at the appropriate moment.

But you don’t have to do everything yourself. At Compare the Market, if you automate your car insurance renewal quotes, we’ll automatically search for quotes for you, ahead of your renewal time.

Automate your car insurance with us.

Remember, you’ll still need to cancel your current policy before it auto-renews.

Frequently asked questions

it illegal to have two car insurance policies on one car?

No, doubling up on your car insurance isn’t illegal. But if you make a claim from two insurance providers, you can’t claim for the full amount from each of them. This is considered fraud, which is illegal and can land you with a criminal record.

Will I get paid more if I have two car insurance policies?

No. Each of your insurance providers will only pay their share of the claim. For more information, read the ‘contribution clause’ in your policy documents.

Is it ever worth having two policies on one car?

There’s generally no advantage to having double policies on the same car. Double policies don’t mean double cover – it just means you’ll be paying two premiums instead of one. And you’ll have two claims to deal with if you’re involved in an accident.

The only time it might make sense to have more than one policy on the same car is if you want a higher-risk driver – for example, a younger driver or someone with driving convictions – to have their own separate policy.

In this case, having a separate policy would mean that your no claims bonus wouldn’t be affected if they did have an accident.

Where else might I end up double insuring?

It isn’t just car insurance you risk doubling up on – you’d be surprised how often people end up paying twice for the same insurance.

For example, some credit cards and bank accounts come with travel insurance included. If you then take out a separate travel insurance policy, you’ll be doubling up on your cover.

Doubling up is usually unnecessary and will cause problems when you come to claim. The exception to this is life insurance, where you may want more than one policy to cover different needs. For example, you may have one policy to pay off your mortgage and another to cover inheritance tax.

If I double up on my car insurance, can I get a refund?

That depends. If you notice on your bank statement that you’ve been caught out by auto-renewal and you’ve paid twice for car insurance, call your insurance provider to see how they can help.

If you catch your mistake within the 14-day cooling-off period, by law you can cancel an insurance policy for any reason and get a refund. You may have to pay a proportionate amount for any days that the policy was active and pay a small administration fee.

After the 14-day cooling-off period, you can still cancel at any time. But you’ll need to check the terms of your policy to see what refund you may be entitled to and what fees you’ll be charged.