Is it Possible for Two People Insure the Same Car?

Is it Possible for Two People Insure the Same Car?

If two people use the same vehicle, they might wonder if they can share the same insurance. Can two people insure the same car? Is the practice legal? Is it even worth it?

Read on and find out!

A Single Auto Insurance Policy is Adequate

One policy can cover all the insurable interests that any two parties may have in the same car. It can even protect an auto loan co-signer in the event of a crash, theft, vandalism, or any other risk under collision and comprehensive coverage. There’s no need for two people to carry separate insurance policies on the same car.

Insurers May Delay or Deny Your Claim if You Insure the Same Car Twice

Carrying two insurance policies on a single vehicle may backfire on you when the unfortunate happens and you have to file a claim. For starters, most insurance companies won’t offer you two separate policies for the same car.

As such, the only way to double insure involves two insurance companies, neither of which would readily admit responsibility for the same claim. Each will probably deny liability in a lengthy contest that may end up in court.

You Can’t Profit from Double Insurance

Auto insurance can return you to your pre-crash status by replacing or fixing your damaged car. It won’t buy you a better car or two cars, and that’s the law. So, if two people double insured an automobile, neither policy holder would receive a full settlement for the same accident claim.

Worse still, two people buying insurance for the same car amounts to paying twice for the same potential claim. It isn’t worth the investment.

Legal Implications If You Insure the Same Car Twice

Any two people with insurable interests in one car may carry two separate insurance policies on it, but filing two separate claims for the same accident may have unintended legal outcomes, such as penalties. It all depends on a myriad of factors, including state law.

You don’t have to insure the same car twice. If you need more-in-depth information on insurance, contact the experts at Steve Wilk Insurance today. You may also visit our office at 310 S Main Street, Suite C, Lombard, IL 60148.