Can you have two auto insurance policies?

Almost everyone knows that you have to have auto insurance to legally drive a car. If you are caught driving without insurance, you could face heavy fines, court costs, and even jail time.

But can you have two auto insurance policies simultaneously for even more protection?

While there is no law against having two policies on a single vehicle, most companies discourage this practice. Making two claims with two different insurance companies for a single accident may be considered insurance fraud.

Read through our guide to better understand the legalities of having a vehicle insured twice. Often, two policies on one car is both unnecessary and a nuisance, as it leads to confusion if the vehicle is involved in an accident.

To simplify things, you may want to use a comparison tool to find an auto insurance policy that adequately covers you and any other drivers who regularly drive the vehicle.

Instead of two separate policies, see how much a fuller coverage policy will cost you by entering your ZIP code into our free online quote tool above for affordable auto insurance quotes now.

Can you legally have two auto insurance policies on one car?

We hear a common question: “Can I have auto insurance from two different companies on one vehicle?” Drivers incorrectly assume that doubling up on policies is the only way to get better insurance coverage.

However, what those drivers do not realize is that you can add extra coverage to a single policy instead of paying for a second one.

So perhaps the right question to ask is not, can you be on two auto insurance policies at once, but instead, should you?

Can you have two insurances in your name? While having two car insurance policies on the same vehicle is legal, one insurance company will not insure the same car twice. You will have to purchase a second insurance policy with a different insurance company and pay both bills.

But if you choose to double-insure your car, you may be violating the policies of one or both insurance companies. Your coverage could be terminated, leaving you entirely without insurance. Ultimately, you would’ve been better off paying for only one policy.

Paying for two separate policies will be twice as expensive. See the average annual auto insurance policy cost in your state below.

Average Annual Auto Insurance Rates by State

If you plan on taking out two policies, double the number to approximate how much your two auto insurance policies might cost you. Even in states with lower than average auto insurance rates, paying for two policies is very pricey.

You might be thinking that two policies mean twice the payout if you ever need to file a claim. However, you will only be able to file one claim per accident.

When you register your vehicle or when the DMV is notified of your insurance policy, both of your insurance companies might be alerted about your dual car insurance policies, which could cause you problems.

Your coverage might be terminated by both providers, leaving you without insurance.

How can two auto insurance policies on one car cause unjust enrichment?

Can you have two car insurance policies overlapping? You need to be careful with overlapping car insurance.

So, is it illegal to have two auto insurance policies on one car? Technically, you are not breaking any laws just by having two separate policies. However, what you do with those two policies can be problematic.

In the insurance world, if you get into a car accident and file claims with two different insurance companies in an attempt to give yourself a financial windfall, it is known as unjust enrichment. Unjust enrichment is a form of auto insurance fraud.

According to the National Association of Insurance Commissioners, fraud impacts auto insurance more than any other type of insurance. Otherwise called double-dipping insurance, this is the primary reason most states and insurance companies disapprove of multiple insurance policies on one vehicle.

Think about it. If both of your auto insurance claims were approved, you would get twice as much money for the accident then you would normally receive. You cannot keep both settlements.

The FBI reports that the total annual cost of insurance fraud, minus health insurance, is $40 billion. Not only is double-dipping an insurance claim illegal and constitutes insurance fraud, but you may even be charged with a felony.

You’re better off purchasing a fuller coverage insurance policy that will legally protect your vehicle in an accident.

What are the reasons drivers consider two auto insurance policies?

Can you have two insurance companies on one car? Yes, drivers use several reasons when they insure the same car with two different insurance companies. But as you’ve learned, in most cases, a single policy will suffice, and a second policy is just a waste of money.

For example, perhaps you want to make sure you have adequate coverage in the event of an accident. Instead of taking out a second auto insurance policy and facing potential fraud charges, invest in more coverage options.

What does fully comprehensive auto insurance cover? The details of a full coverage policy will vary by the insurance company. However, it almost always includes your state’s minimum required level of coverage and some level of collision and comprehensive insurance.

You can also add optional coverages, like roadside assistance programs and even rental car assistance.

Or, maybe you share a vehicle with a roommate, friend, or another household member, and you both want different coverage levels on the vehicle.

However, a second policy is still inadvisable. Paying for two separate policies will cost more than splitting a fuller coverage policy between two people.

If the roommate you share your vehicle with is a high-risk driver who struggles to receive affordable insurance rates, compare rates from multiple insurance policies to find one you can both afford.

If you live with your significant other, you can still both be on the same insurance policy, so there is no need for you both to carry separate policies.

You can use an auto insurance comparison tool and input the information for all of the drivers for the vehicle and the vehicle’s information. The tool will then compare your information and auto insurance desires with all available policies.

Ultimately, you and your roommate are better off coming to an agreement and splitting the costs for a single policy.

As you can see, in most instances, having two auto insurance policies on a single vehicle is not a smart investment. Instead, explore your options with a single auto insurance policy.

Can you have two auto insurance policies on two different cars?

You may now be wondering, can you have two separate car insurance policies on two different cars? If you own more than one vehicle, you can purchase two separate auto insurance policies to cover each car separately. However, you will be losing car insurance discounts that can lead to massive savings.

If you insure both vehicles under one single policy, you will receive a multi-car policy discount. Because you’re giving the insurer more business, you’ll receive cheaper rates as a reward.

Sometimes, two cars have two separate policies because one is used for personal reasons, and the other is used for work. However, you can bundle commercial auto insurance policies and personal auto insurance policies with the same company for more opportunities for savings.

Also, to carry insurance on a vehicle, you must show that you have an insurable interest. That means that you could lose money if something happens to the car. Unless you are a co-owner, it’s hard to make that assertion.

Another thing to consider is just how difficult it would be to have a claim approved. If you have multiple people and insurance companies involved, it can take longer for either company to agree to pay a claim.

What is multi-policy auto insurance?

If you have multiple cars to insure, it makes sense to put them on the same policy with the same insurer. The only requirement is to have at least two vehicles on your policy.

Coverage levels on each car don’t have to be the same, and you can customize each policy to fit your needs. As long as you meet your state minimum auto insurance requirements, you can purchase as little or as much insurance as you would like for each car.

The benefits of multi-policy auto insurance include ease of use and price. Keeping up with claims and payments is much easier with just one car insurance company to keep up with. Many companies will allow you to add vehicles to your policy online.

Many car insurance companies will offer you multi-policy discounts as well. These auto insurance discounts can range up to 25 percent and help lower your auto insurance rates.

Can you have two car insurance policies in the same household? You are now an expert on how best to insure two vehicles. Don’t mistake wasting money and time by taking out two policies on a single vehicle.

Avoid paying double by doing your research, establishing what level of coverage you need, and comparing rates from multiple companies to know the policy you pay for is exactly what you want.

So, can you have two different or separate car insurance policies? You should now know the answer to this. If you have any questions or additional insight, feel free to comment below.

Car insurance for multiple cars can be simplified with a multi-policy approach that covers all vehicles under one plan. When changing auto insurance when moving out of state, it’s essential to compare rates from different car insurance companies to find the best coverage for your needs. Multi-car insurance for two drivers in the same household can often lead to discounts and streamlined management of policies. For car insurance for multiple vehicles, bundling coverage can save you money and offer convenience and comprehensive protection for all your vehicles.

Ready to buy auto insurance? Replace your two auto insurance policies with a better one right now by entering your  ZIP code into our free quote comparison tool below.

Final Thoughts

Having two insurance policies on two different cars is possible and can offer advantages such as tailored coverage and potentially lower car insurance rates. Combining insurance for multiple vehicles under different auto insurances allows you to customize each policy to the specific needs of each car. This approach ensures that each vehicle is adequately covered without paying for unnecessary coverage. However, reviewing and comparing different insurance policies is very important to ensure you get the best value and coverage for your specific needs.

Having two insurance policies on one car can lead to complications if not managed properly. For example, company car insurance policies may already cover certain aspects, making a combined insurance approach necessary.  When searching for the best car insurance for two cars, each policy must complement the other without overlapping coverage. Accidentally double-insuring a vehicle can result in unnecessary expenses and confusion during claims processing. Therefore, carefully reviewing and coordinating car policy insurance can help maximize coverage while avoiding unnecessary costs.

In the state of Texas, for example, owning and insuring more than one car can involve navigating primary and secondary insurance rules. While it’s possible to have multiple insurance policies on the same car, such as a joint car insurance policy, it’s essential to understand how those policies interact to avoid duplication or gaps in coverage. Having multiple car insurance policies can offer flexibility and potentially lower rates, especially if each policy covers different aspects of your vehicle’s needs. However, you must review and coordinate those policies to make sure you are allowing for the most efficient coverage for all of your vehicles.

Understanding how to transfer car insurance from one company to another is also good to know.

There are some good steps to follow when transferring car insurance from one company to another, especially when insuring more than one car or insuring a second car to your policy. Start by comparing online car insurance to find a new policy that meets your needs and offers competitive rates. Notify your current insurance provider of your intent to switch and inquire about any penalties or fees associated with canceling your existing policy. Avoid having more than one car insurance policy on the same car to prevent complications and ensure you’re properly covered during the transition period.