Car insurance policies protect you and your vehicle in case of an accident or natural disaster, and a minimum level of coverage is required by law in most states. But can you have two car insurance policies?
There are a variety of reasons someone might consider holding two car insurance policies. In this guide, our review team answers commonly asked questions about having multiple car insurance policies to help you decide whether or not a second policy is right for you.
If you’re in the process of shopping for car insurance, we recommend getting a few quotes so you can compare coverage and cost. Use our tool below to get started or call Motor1's designated quotes team at (844) 246-8209.
In this article:
- Can You Have Two Car Insurance Policies Legally?
- Can You Have Two Car Insurance Policies On The Same Car?
- Can You Have Two Car Insurance Policies On Different Vehicles?
- Can You Have Two Car Insurance Policies In The Same Household?
- Can My Significant Other And I Have Two Car Insurance Policies?
- Our Recommended Car Insurance Providers
Can You Have Two Car Insurance Policies Legally?
While it is perfectly legal to have two car insurance policies on the same vehicle, your insurance company will not insure the same car twice. You will have to purchase a second insurance policy with a different insurance provider and pay both bills.
Some people have a second car insurance policy in order to cover their luxury or classic vehicle. Many people accidentally have two car insurance policies because they forget that they have another active policy or mistakenly think that it expired.
While having two car insurance policies is legal, filing the same claim with two insurance companies is not. If you get paid by two car insurance companies for the same claim, you have committed insurance fraud.
Can The Same Car Have Two Car Insurance Policies On?
You can technically have two car insurance policies on the same vehicle, but it is not recommended. Double-insuring a vehicle may violate the policies of one or both insurance carriers. In addition, if one of your insurance companies finds out that you own another policy on the same vehicle, that company may ask the other company to pay future claims. This could cause your claim payments to be delayed or not paid by either provider.
Can You Have Two Car Insurance Policies On Different Vehicles?
It is legal to have two car insurance policies on different vehicles. A common reason to do this is when your carrier can’t provide insurance on one of your vehicles, such as a classic car or luxury vehicle.
However, having two car insurance policies on different vehicles generally costs you more money, so it is not recommended. Many insurance providers offer multi-car discounts. And if you live in a household with multiple people, your existing insurance policy may require that all drivers in your household be added to your existing policy. This can potentially raise the rate of your insurance premium, so it is best to take advantage of the one plan you already have.
Can You Have Car Insurance Policies In The Same Household?
Two car insurance policies can be held in the same household for certain reasons. If someone in the household owns a classic or luxury car, they may need a different car insurance policy to cover that specific vehicle.
Insurance companies often require all members of a household who are licensed to be listed on a policy. If you hold two or more car insurance policies, you will likely have to add all of the other household members to each of your policies. Listing additional drivers can sometimes add cost to your plan, especially when a young driver is added. Because of that possibility, it is wise to stick with one auto insurance policy per household when possible.
Can My Significant Other And I Have Two Car Insurance Policies?
If you live with a significant other you might be wondering, should your boyfriend or girlfriend be added to your policy? Or should you have two insurance policies?
If they are a member of your household, and your car insurance company will likely ask them to be listed on your policy. Because adding someone to your policy could potentially raise your premium, it is generally recommended that you share one car insurance policy. You can also potentially get a multi-car discount by taking this action, too.
Permissive Use Policies
If you do not live with your boyfriend or girlfriend, they may already be covered under an auto insurance company’s “permissive use” clause. A permissive use clause allows drivers who do not live with you to operate your vehicle under your consent. Each insurance company has a different permissive use clause, but your significant other will generally be covered if they do not live with you.
It is important to note that if your significant other is not currently insured by another provider, they are typically not covered under the permissive use clause of your insurance policy. In addition, if your significant other drives your vehicle frequently (more than 10 to 15 times a year), they need to be added to your policy.
There are a few reasons to keep your car insurance policies separate if you do not live together. If you or your partner hold a poor driving record or bad credit score, adding yourself or your partner to the other’s policy will likely raise auto insurance rates. Another reason to have two car insurance policies would be if one of you drives a very expensive vehicle. By adding one to the other’s plan, the rates could potentially rise for both of you.
Our Recommended Car Insurance Providers
If you plan to make a change to your auto insurance policy, we recommend reading our review of the best auto insurance companies. It could be a great time to switch your provider if you can get a better deal with a different company.
|Insurance Provider||USAA||State Farm||Geico|
|AM Best Financial Strength Rating||A++||A++||A++|
|J.D. Power Claims Servicing Score||5||3||3|
|New Car Replacement||✔||✔|
#1 USAA: 4.8 Stars
If you're looking for an insurance company with low rates and discount opportunities, USAA could be for you. USAA is known for its extensive coverage for military and families with some of the lowest premiums and best customer satisfaction reviews.
It’s the only provider that we give 4.8 stars. J.D. Power also rates USAA highly for claims servicing, and AM Best gives USAA an A++ for financial strength.
USAA is nothing short of comprehensive, as members can get a variety of add-on products and services from roadside assistance to glass coverage. Our USAA auto insurance review takes a more in-depth look at coverage and plan options.
#2 State Farm: 4.6 Stars
State Farm is a great choice for drivers looking for quality coverage and discounts. This provider offers additional coverage options including rideshare insurance, roadside assistance, and coverage for high-risk drivers. Overall, State Farm earned an A++ financial strength rating from AM Best and an A+ rating from the BBB. It also scored high on J.D. Power's 2021 Auto Claims Satisfaction Study℠.
Read our State Farm Auto Insurance Review for more information on this provider.
#3 Geico: 4.6 Stars
We've given Geico 4.6 stars because of its affordability and reliability, making it one of the top-rated insurance companies in the industry.
If you're looking to add multiple vehicles to your policy, instead of purchasing two insurance policies, Geico offers a multi-vehicle discount. With this, members can save up to 25% when you add a second vehicle to your policy.
Overall, Geico's nationwide availability, affordable rates, simple claims process, positive reviews, and A++ rating from AM Best make it a smart choice for most drivers. Explore all that this insurer has to offer in our Geico auto insurance review.
Shopping For Car Insurance
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare car insurance coverage. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.
Read our other articles on car insurance:
- What Is An Auto Insurance Score?
- What Is A Insurance Company Code?
- How Does A Lapse In Coverage Impact Insurance?
- Car Insurance Grace Period
- Can A Speeding Warning Affect Insurance Rates?
- What Is An Auto Insurance Binder
- How Often Do You Pay Car Insurance?
- DMV N.Y. Insurance Lapse
- I Hit A Parked Car, Will My Insurance Rates Go Up?
- Do You Need Proof Of Insurance To Buy A Car?