Can I Have Two Travel Insurance Policies

Having multiple travel insurance policies that overlap in coverage can complicate the claims process and may result in unnecessary expenses.

Being dual insured is not against the law, but it can complicate the claims process.

If you have two travel insurance policies covering the same incident, you won’t receive double the payout.

Instead, the insurers will coordinate and decide how to split the reimbursement.

Two travel insurance policies
Two travel insurance policies: Photo source (NerdWallet)

Complex claims with multiple insurers involved can be challenging to resolve, potentially resulting in double registration of your claim, which may increase next year’s insurance premiums.

What Is Double Insuring?

Having duplicate insurance coverage means you possess two distinct policies that provide protection for the same scenario.

For instance, when you have a fee-based bundled bank account or a credit card, you may receive travel insurance as an included benefit.

If you were unaware of this and subsequently purchased separate travel insurance, you would find yourself with two policies offering identical coverage.

Does Double Insuring Mean I’ll Get Paid More If I Make a Claim?

No. If you have two travel insurance policies, each insurer will only pay their share of the claim.

This is outlined in a section called the ‘contribution clause’ in your policy documents. It explains the share your insurer will pay in this situation.

What Happens If I’m Double Insured And Why’s It a Problem?

Having two travel insurance policies can lead to claim delays, as insurers may need to coordinate contributions.

This results in making two claims, increasing future premiums more than a single claim would due to the need to declare both on future applications.

Travel Insurance Through Your Bank Account Or Credit Card

When it comes to finding the right travel insurance policy for your needs, check:

  • What you’re covered for
  • Whether you have enough cover
  • What the excesses are
  • Whether the country you’re travelling to is included
  • What the insurer’s contribution clause is and how you would be affected if you need to make a claim

When Is Double Insuring Ok?

Life insurance is the exception, as you can get multiple policies to cover different financial responsibilities.

Some other insurance policies will have an ‘excess clause’. It means you might be able to claim from a second insurance policy if the total amount of your claim exceeds the cover limit of your first policy.

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