What is Dual Car Insurance?
Can I insure myself on a car that already has an insurance policy? We explain the complex matter that is double insurance.
It’s a common misconception that it’s always illegal to get insured on a car somebody else has already insured. However, that is not the case and an existing insurance policy is a prerequisite for all Veygo policies. We’re going to break down the confusing rules about dual car insurance.
What is dual car insurance?
Dual or double car insurance occurs when the same items are insured against a risk under more than more insurance policy. An example of this is when a policyholder has two active insurance policies on the same vehicle.
Is dual car insurance illegal?
Contrary to popular belief, dual car insurance isn’t actually illegal. You may find yourself accidentally doubling up on cover in many scenarios. For example, you may not realise that your policy has automatically renewed and take out a new one. You could purchase a policy for a new car, not realising that it comes with free drive away insurance.
What is the problem with dual car insurance?
Dual insurance may not be illegal but it’s definitely not a good idea. By doubling up on insurance policies you are not doubling up on cover, you’re just costing yourself more money! If you have two policies and need to make a claim, you could find yourself in a complicated situation.
If you’re involved in an accident and make a claim, each of your insurers would only pay their share. This can be tricky when they don’t agree on how much they should pay! It also means that you would be making two claims. They’d both need to be declared at renewal and you may even lose your no claims bonus on each policy. In this case you would probably see a significant increase in your premium the next year!
So is learner driver and car sharing insurance classed as dual insurance?
No, you don’t have to worry about dual insurance with us. Veygo policies provide cover for drivers who are not named on the vehicle’s main insurance policy and therefore they do not cover the same risk. As explained above, this means that our temporary car sharing and learner driver cover is not dual insurance.
Our short term insurance policies are fully comprehensive and totally separate to the owner’s main insurance, so if you need to make a claim, the owner doesn’t need to declare it to their insurer and can enjoy the peace of mind that comes with knowing their car is covered up to the current market value.