Can You Have Two Car Insurance Policies?

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  • Disadvantages
  • When to consider?
  • Multi-policy discounts
  • Legality
  • Average rates
Drivers need at least one policy, but two policies? It’s not illegal but you risk committing insurance fraud. There aren’t any laws to stop you from getting two policies from two separate companies, but you cannot file claims with both companies for the same accident.
Navigating car insurance is tricky, we get it. Let Jerry help. The free Jerry app is built by car experts, and harnesses the power of technology to quickly compare rates and find you the best coverage at a great cost.
Read on to learn the nitty-gritty of holding two (or more) car insurance policies.
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Disadvantages of having two policies

There are definite drawbacks to holding two car insurance policies. Here are a few of the most notable examples.

It’ll cost you extra

With two policies, you will pay two premiums. Since you cannot file two claims for the same incident, the extra cost doesn’t deliver any real benefit.
If you end up filing a claim, your insurance payment will go up twofold—and you’ll lose your safe driver discount with both companies.

Your claims processing will take longer

When you file a claim with one company—but hold two policies—both companies will need to negotiate about who covers what.
This adds extra time to your claims processing period. Ultimately, this will delay your settlement payment which can create even more problems.

One company (or both) could drop you entirely

Most companies will decline to insure you if you hold a policy with another insurer.
Think you can get away with it? When you renew your vehicle registration, the DMV could notice the dual policies and report you to both companies. Then, one or both could cancel your coverage and you’d be in a real pickle.
Key Takeaway If you hold two policies, you run the risk of the DMV reporting you to both insurers when you try to renew your vehicle’s registration.

You could be charged with fraud

If you file a claim with two companies for the same incident, this is insurance fraud. You will lose your insurance and you could even be charged with a felony. It’s not worth it.
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When it makes sense to consider dual policies

There are some situations, however, where having two policies is a logical thing to do.
Maybe you forgot that you had a policy, or you thought that one policy expired. As a result, you purchased supplemental coverage to protect yourself. To avoid this situation, schedule reminders for your auto-renewal dates and keep your documents organized to ensure you understand what’s covered and avoid duplication.
Jerry is a smart way to find the right car insurance policy. Plus, Jerry sends you new quotes every time your policy is up for renewal so you always know you’re getting the lowest price.

You have two separate vehicles for different purposes

If you drive one vehicle solely for work and one solely for personal use, then it definitely makes sense to get two separate policies. Whether you work for yourself or someone else, look for an employer policy to keep work things separate from your personal policy.

You own a specialty vehicle

If you own a luxury vehicle or a classic car, then you might need special coverage beyond the basics.
In this case, you should get a separate policy for classic car coverage that is not shared with other household members. More expensive vehicles are more costly to insure, so it’s smart to keep this policy separate from your daily usage vehicles and policies.

You and your spouse have very different driving records

If one of you has a lousy driving record—or poor credit—then you may wish to purchase separate auto policies.
Keep in mind that every driver who uses the car regularly needs to be officially listed on the policy. Most companies have a ‘permissive use’ clause which means that occasional drivers are covered under your policy. But this does not cover people who live at your address and drive the car frequently.

A possible strategy: Multi-policy discounts

It makes the most financial sense to get a single policy that covers all the vehicles and drivers in the household. It can be customized to your needs so long as you meet the state minimums.
Multi-policy discounts are another smart way to reduce your overall payment without forgoing any coverage. You could save 25% by bundling with multiple drivers (or bundling policies for home, auto, and life insurance).
Be aware that if two people will be listed on the policy, the company will base its calculation on the highest-risk driver which can raise your overall rates.
Jerry can help you compare rates to find the lowest deal you qualify for.
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Is it illegal to have two car insurance policies?

No, it’s not necessarily illegal. You may be able to get two policies for the same vehicle, which is called duplicate coverage. You could get two policies from two companies under your name if you have two vehicles, for example.
While it may be allowed under some circumstances, dual policies are not the most cost-effective way to handle car insurance. In most situations, laws and companies do not permit duplicate coverage. It is definitely illegal to file two claims for the same incident with two companies, so proceed carefully.

Average car insurance rates by state

Here is the average car insurance payment in each state for basic coverage, before and after using Jerry.
StatePrice before JerryPrice after Jerry
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