Two Car Insurance Policies From Two Different Companies- Is It Possible?
Comprehensive four-wheeler insurance can help a car owner cover the financial losses incurred due to theft, accident, natural disaster, or other damages to the car and the other vehicle involved in the accident known as a third party. Besides, purchasing third-party vehicle insurance is a statutory requirement in India.
While purchasing single car insurance is enough, you may wonder what if you buy two policies for the same car. It is completely legal in India to purchase two vehicle insurance policies for the same car. However, purchasing two vehicle insurance policies is not recommended for the following reasons.
Three Reasons to Avoid Double Car Insurance
- Extra Burden
Purchasing two vehicle insurance for your car will put an extra financial burden on you in the form of two insurance premiums. Instead, it is sensible to buy one good car insurance policy that can adequately cover your expenses if you file any claim.
- No Double Benefits
You are not supposed to receive compensation from two different insurance firms for the same claim. For instance, if your car is stolen, then you can’t claim compensation for car theft from two different insurance firms, which is considered unlawful.
Simply put, double vehicle insurance doesn’t increase vehicle insurance coverage.
- Potential Settlement Delay
If either of the insurance firms finds out about the other policy, then each of them may try to pass the responsibility of settling your claims to the other firm. This may cause unnecessary delay in your settlement, and worse, you might not get compensated.
How to Avoid Overlapping?
Overlap vehicle insurance is a situation when you accidentally buy two vehicle insurance while switching your insurance provider. Such a situation can occur when you switch your insurance firm during the renewal, and your old vehicle insurance is automatically renewed.
You can avoid overlapping vehicle insurance by taking care of simple but vital points.
- Thoroughly examine your vehicle insurance policy documents before renewing.
- Check the renewal date and ensure that your new policy doesn’t overlap with the old one.
- Check whether you have put an auto-renewal system on your old policy through online banking or credit card. If yes, then disable all the auto-renewal facilities first.
You can consider switching to another insurance provider if you are unsatisfied with your existing vehicle insurance policy. However, buying two vehicle insurance for the same car is unlikely to bring any additional benefit or value to your insurance coverage. Therefore, it is better to stick to single car insurance.