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RacerMDR

Original Poster:

2,877 posts

96 months

[news] 
Wednesday 19th October 2011 quote quote all
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

Defcon5

4,601 posts

77 months

[news] 
Wednesday 19th October 2011 quote quote all
As far as Im aware, you can insure anything youhave an insurable interest in. I cant see why it would be illegal.

10 Pence Short

32,880 posts

103 months

[news] 
Wednesday 19th October 2011 quote quote all
You can't usually have two policies covering one asset.

ben5732

627 posts

42 months

[news] 
Wednesday 19th October 2011 quote quote all
Worked in insurance in the past. It is not illegal to have 2 policys on one item/ vehicle, however it IS fraud if you claim on both policys for the same incident.

northandy

3,204 posts

107 months

[news] 
Wednesday 19th October 2011 quote quote all
I sold a classic car last year, on which i had a classic policy which doesnt refund part years.

I sold the car and when checking the terms found that it would cost me £35 to cancel the policy.

I just let the policy run and didnt renew, i was taking the risk that the new owner would insure the car, as i am guessing had he not and then crashed the people he hit could have claimed on my policy.

In the end nothing happened, policy lapsed at renewal and no small animals were injured.
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DaveH23

1,266 posts

56 months

[news] 
Wednesday 19th October 2011 quote quote all
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.

daz3210

5,000 posts

126 months

[news] 
Wednesday 19th October 2011 quote quote all
10 Pence Short said:
You can't usually have two policies covering one asset.
Why not?

When I have claimed before, one of the questions often asked is is any other insurance in force in relation to this claim.

That implies it is perfectly acceptable to have two policies covering one item.

No different to having an insurance policy with a big excess and then another policy specifically to cover the excess (as was suggested in one of the recent Nurburgring threads in General Gassing)

RacerMDR

Original Poster:

2,877 posts

96 months

[news] 
Wednesday 19th October 2011 quote quote all
thanks guys - sounds like it should be ok and worth a call to the insurance company

daz3210

5,000 posts

126 months

[news] 
Wednesday 19th October 2011 quote quote all
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?

RacerMDR

Original Poster:

2,877 posts

96 months

[news] 
Wednesday 19th October 2011 quote quote all
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.

ExChrispy Porker

12,222 posts

114 months

[news] 
Wednesday 19th October 2011 quote quote all
My son has a separate policy to cover him driving my car with L plates on . ( My insurers declined to cover him)

mph1977

7,510 posts

54 months

[news] 
Wednesday 19th October 2011 quote quote all
ben5732 said:
Worked in insurance in the past. It is not illegal to have 2 policys on one item/ vehicle, however it IS fraud if you claim on both policys for the same incident.
This ...

how many businesses have deals with spot hire companies which are cheap because it's a temp additional vehicle on the renter's policy, yet I doubt it's taken off the rental co's policy at that time ...


Pontoneer

3,464 posts

72 months

[news] 
Wednesday 19th October 2011 quote quote all
I once loaned one of my cars to my sister after her own car required expensive repairs , on condition that she insured my car . She duly transferred her policy onto my car and used it for a few months until hers was repaired , at the same time my own policy was still valid in case I wished to drive what was still my own car .

Defcon5

4,601 posts

77 months

[news] 
Wednesday 19th October 2011 quote quote all
daz3210 said:
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?
I dont think so, as you are insuring the person to drive the car, rather than just the car itself.

zaphod42

13,981 posts

41 months

[news] 
Wednesday 19th October 2011 quote quote all
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.

daz3210

5,000 posts

126 months

[news] 
Thursday 20th October 2011 quote quote all
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).

RacerMDR

Original Poster:

2,877 posts

96 months

[news] 
Thursday 20th October 2011 quote quote all
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!

daz3210

5,000 posts

126 months

[news] 
Thursday 20th October 2011 quote quote all
Guess that depends if they find out.

surveyor

7,519 posts

70 months

[news] 
Thursday 20th October 2011 quote quote all
My understanding was that where the claim is valid for two insurance companies - eg theft, they would split the payout 50/50.

I could be wrong.

bicycleshorts

1,805 posts

47 months

[news] 
Thursday 20th October 2011 quote quote all
Defcon5 said:
As far as Im aware, you can insure anything youhave an insurable interest in. I cant see why it would be illegal.
Speaking to someone at Elephant lately, she said it was "against their policy". I asked why, she said "which insurer would you claim from?". It was more a passing comment so I didn't ask any more questions but I was always under the impression that you can have multiple policies but only claim from one (regardless of whatever rules they have made up).
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