Is it illegal to have to insurance policies on the same car?

[RacerMDR]

damn it - typo in the title - TWO insurance policies!

I have a car - which i'm loaning to a friend (who doesn't own a car so doesn't have their own insurance)

I have an insurance policy on it - paid up until 2012. Plus I always run two insurance policies as I often dip in and out of 2nd/3rd cars and like to have several 'lots' of no claims bonuses built up.

Anyway - I don't really want them as a named driver of my policy in case anything happens and if affect my other insurance policies.

So - my suggestion is they can borrow the car if they get their own insurance on it.......

but I have a niggling niggle that it's illegal to have two main policies running on the same car.

So, 1 is it illegal.

2 - what are my options?

Cheers

RacerMdr

[RacerMDR]

thanks guys - sounds like it should be ok and worth a call to the insurance company

[RacerMDR]

daz3210 said:

DaveH23 said:

Im sure I have read somewhere hear that you can have it insured twice but if there is an accident you can't claim twice.

Could be and probably am wrong though.

Could actually be that if you did have two policies that the liability is actually split between the two. So they pay 50% each.

In which case is there any point having the second policy?

the point for me is I don't want my policy affected under any circumstances if there is any kind of incident. I'd rather not lend the car out under those circumstances. Essentially this is long term car loan.....as I'm not using it and moving to a place where I only have space for the bimmer.

[RacerMDR]

daz3210 said:

zaphod42 said:

You can.

Insurance is a contract to manage and compensate risk. You can have 3 if you want, but can only claim on one in in incident. Companies do track and share info.

I would argue you are potentially incorrect there.

To answer an earlier post, yes you do to a degree insure a driver.

But what if there is a theft claim, or a claim for damage while the vehicle is not being driven.

In that case you potentially have more than one policy that could cover, and one set of insurers may look to have another join them in liability. (Mainly because insurance companies always look to minimise what they HAVE to pay).

surely though - if it's stolen whilst in the 'possession' of the person that has loaned it - then they will call the insurance company and activate their policy. THe other policy in my name wouldn't ever be involved?

Or is that too logical for insurance companies!