Auto and Car Insurance

Is it illegal to run 2 insurance policies on one vehicle?

Is it illegal for me to have a car with full comprehensive cover from Direct Line - then for a friend to take out day insurance on my car for a couple of days without doing anything to my existing DL policy?

Public Comments

1. I don't think you have a problem unless you make a claim for the same loss to both companies, which looks a little like fraud. Otherwise, I'm sure the insurance companies are happy to take your money.
2. no it is only illegal to CLAIM on 2 separate policies. You are making things unnecessarily complicated. Contact direct line and tell them about your friend , and the days that this person will be driving your car. Allow me to give you some fatherly advice. NEVER allow friends to drive your car. This person should hire a car for a few days.
3. I agree with NotEckyBoy. Actually your friend might have difficulty getting cover anyway. Insurance details are held on a central database which all insurers access, so your friend's attempt to get cover will ring bells and flash lights and lead the insurers to suspect that a fraud is in the offing. Better by far for your mate to hire a car or, if you must, contact your own insurers and get him added to your cover for the time in question. A lot of friendships have foundered after lending cars . . .
4. If you have a claim what may happen is both will only pay a proportionate share of the claim. Many times there is wording in the policy to that effect. Look under the section called something like "If there is other insurance." For example, If you say cause 15K in property damage when hitting another car and under one policy you have 10K in property damage coverage and on another one you carry 20K in coverage, the one that you have 10K coverage on would pay 5K and the one you pay 20K on would pay 10K.
5. You can have issues with dual insurance when you go to claim off one policy. Each insurer will bear a proportion of the loss thereby hitting your DL policy anyway. There are loads of scenarios whereby a claim can be made where a car is not being driven; especially fire, theft or malicious damage so who will decide which insurer has to bear the cost of the claim? It is not unlawful per se (if you have no fraud in mind) but they will moan a bit and you are likely to get hit with two excesses. In the end your insurers will find out as there are questions on the claim form as to who owns the car, dual insurance etc. The only way to really keep insurers happy is to have two third party only policies on each car but that would defeat the object. The only way to protect the car is to have your friend put on the policy. However that will expose your DL policy to risk but ... that's what it is there for. Insurers have the moral and legal right to know about this as they are accepting the risk. I can see it becoming a REAL pain in the bum of you have a loss and get a stroppy motor engineer or assessor. xxFJ
6. As far as I know, insurance companies will not give policies to a person unless the vehicle is registered in their name..in other words, your friend can not get his own policy on the car. I considered trying this when I financed a vehicle for my boyfriend, but instead I made myself a lien holder on the title.
7. why would you want to
8. Hello, We often take for granted what a convenience our cars are. I was paying a low price for my insurance, but at renewal time, my insurer tried to increase my rates. My friend sent me a link to this site: http://www.help-my-rent-mortgage.org They have a free search to compare auto rates from the major insurers. It saved me a lot of money! Best of Luck