insurance question

is it possible for a vehicle to have multiple insurance policies covering it at one time?

is it legal? will the insurace co's do it?

I say no its not possible and possibly illegal, maybe?

what sayeth the all knowing mr Loon?

Iesi Mawr  

You can actually insure a vehicle as many times as you like, but it is a bit stupid as the policies will only pay out for the value of the vehicle / repairs once in the event of a claim. 

The rule that applies is either one of contribution where the insurers share the cost of the claim or more commonly for general public policies, the first to be put in place would pay out and the other insurer would void their policy.

It's not illegal to have dual / multiple insurance in place, unless the intention was to try to claim the full amount of the vehicle on each policy, in which case this is fraud and will land you with a nice fine, voided policies and possibly a stay at HM pleasure, if of a high oenough value.

There are a few legitimate reasons for dual / multiple insurance, but none of these apply to a normal vehicle owned by a member of the public.

Simple answer is technically the other person is right, practically speaking you are right.

Btw, I'm more pissed off than pissed

Did you ever hear anyone say “That picture had better be banned, because I might look at it and it might be very damaging to me”

Iesi Mawr  

R1 loon wrote (see)

You can actually insure a vehicle as many times as you like, but it is a bit stupid as the policies will only pay out for the value of the vehicle / repairs once in the event of a claim. 

The rule that applies is either one of contribution where the insurers share the cost of the claim or more commonly for general public policies, the first to be put in place would pay out and the other insurer would void their policy.

It's not illegal to have dual / multiple insurance in place, unless the intention was to try to claim the full amount of the vehicle on each policy, in which case this is fraud and will land you with a nice fine, voided policies and possibly a stay at HM pleasure, if of a high oenough value.

There are a few legitimate reasons for dual / multiple insurance, but none of these apply to a normal vehicle owned by a member of the public.

Simple answer is technically the other person is right, practically speaking you are right.

Btw, I'm more pissed off than pissed

nsrmad wrote (see)

A phone jockey from direct line told me it was...

It's not illegal, but hey much better to believe a £15k a year muppet, than the guy who runs the whole motor claims piece for one of the largest insurers in the UK.

Reality is that if he tried to explain the true rules behind it then his or your head would explode and / or he'd get it wrong, so here's a basic grounding.

Under the Insurable Interest Act (1774) a person may indemnify themselves against loss of or damage to any of their property.

The concept of indemnity is that you put yourself back in the same financial position as you were before the incident.

When applied to motor policies this mean that you can replace / repair your bike / car once, so you will recieve one payout to place you in the same position.

There is nothing to stop you  insuring the vehicle may times over, but if each policy paid out the value of your repairs / vehicle then you would be in a better financial position, thus you would stand to gain from the incident, rather than "stand still". As such multiple policies covering a car / bike for the general public would only be taken out to commit fraud, which is a criminal offence.

So taking out multiple policies is not illegal, claiming on them (for financial gain) is.

There are many rules tha apply and many laws that govern this area, so this is a very basic explanation and there are lots of rules for other disciplines of insurance where multiple policies and multiple claims are legitimate; such as coinsurance, self insurance, marine, disease, liability and the list goes on and on and on.

Did you ever hear anyone say “That picture had better be banned, because I might look at it and it might be very damaging to me”

Did you ever hear anyone say “That picture had better be banned, because I might look at it and it might be very damaging to me”

Go To The Dan Cannell Racing Website

Good men do finish last....

"Food makes people fat - look at the people in the concentration camps... they went in fat but they weren't fat when they left.  It's simple innit."

CBR6DC wrote (see)

ah right, i was under the impression it's illegal to insure a vehicle twice but its only illegal to claim on it.  so you could have 2 policies on a wroteoff car but you can only claim on one.

Did you ever hear anyone say “That picture had better be banned, because I might look at it and it might be very damaging to me”

R1 loon wrote (see)

nsrmad wrote (see)

 

A phone jockey from direct line told me it was...

It's not illegal, but hey much better to believe a £15k a year muppet, than the guy who runs the whole motor claims piece for one of the largest insurers in the UK.

Reality is that if he tried to explain the true rules behind it then his or your head would explode and / or he'd get it wrong, so here's a basic grounding.

Under the Insurable Interest Act (1774) a person may indemnify themselves against loss of or damage to any of their property.

The concept of indemnity is that you put yourself back in the same financial position as you were before the incident.

When applied to motor policies this mean that you can replace / repair your bike / car once, so you will recieve one payout to place you in the same position.

There is nothing to stop you  insuring the vehicle may times over, but if each policy paid out the value of your repairs / vehicle then you would be in a better financial position, thus you would stand to gain from the incident, rather than "stand still". As such multiple policies covering a car / bike for the general public would only be taken out to commit fraud, which is a criminal offence.

So taking out multiple policies is not illegal, claiming on them (for financial gain) is.

There are many rules tha apply and many laws that govern this area, so this is a very basic explanation and there are lots of rules for other disciplines of insurance where multiple policies and multiple claims are legitimate; such as coinsurance, self insurance, marine, disease, liability and the list goes on and on and on.