Can Two People be Insured Separately on The Same Car?
Having a double insurance can result to either each company paying half or both companies paying for nothing at all. Almost all states practically do not allow double insurance to avoid problems. However, it is possible for two people to be insured separately on the same car. This could certainly cause confusion, problems and even invalidation of the insurances.
How can there be a Double Insurance?
Simply put, a double insurance happens when two people who own the same car are insured in different insurance companies. For example, a family owns one car and they all get insured in the same company (as how it always should be). Suddenly, a family member decides to switch insurance companies. This would then cause the car to have people under different insurance companies, making them “insured separately on the same car.”
Another type of double insurance is when an insured car is borrowed by someone who is insured in another company. Situations like this happen most of the time, and what is worse is that when the insurance is finally needed, it becomes hard for the people to get the companies to cover for them because it will seem like unjust enrichment.
The Best Way to Deal with Double Insurance
Despite the conflicts a double insurance can bring, there is no law prohibiting it. Those conflicts are often caused by breaking the company’s policy and not the law. However, collecting from the two insurance companies once an accident happens would be considered insurance fraud, unless those companies pay half each.
The best way to deal with this is by not risking breaking the company policies. If, however, it is really necessary and it cannot be changed, then it would be best for you to check with your company’s policies and the other company’s policies. Do not keep it from them because it can only make the situation worse. Be honest about your situation and show them that your car’s double insurance was not deliberate.
So, as much as possible, avoid getting double insurance for your car. You can do this by consulting with the members of your family. Keep your family insured in one company as much as possible. If there is a case in which a person insured in another company borrows your car, talk to the borrower about the insurances and what you should do in case you will need it. Decide whose policy will cover your car and the borrower.
Bottom line is, discuss insurance with your family before getting anything, so that there will be no unnecessary switching of insurance companies and no misunderstood plans. Let them know as early as possible so that you can avoid having two people insured separately on the same car, which can only give you more conflicts instead of assurance.