If you have two or more insurance policies that cover the same thing, making a claim becomes more complicated and you’ll likely end up paying more than you need to.
Doubling up on insurance means you have insurance cover from two different policies for the same thing.
For example, if you have a paid-for packaged bank account or a credit card, you might be offered travel insurance as part of the deal.
If you didn't know and then bought separate travel cover as well, you’d end up with two policies covering the same thing.
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.
If you need to make a claim, and you have two insurance policies, one insurer could ask the other to make a contribution. This delays claims.
The insurers would then work out a proportionate amount of excess for each policy, which is the amount you’re asked to contribute towards your claim.
The big drawback of this is that it effectively means you’d be making two claims.
You have to declare previous claims on future applications for travel insurance. You'll have to declare two, rather than one. Which means your insurance premiums will go up, and potentially by more than if it were just the one claim.
“It’s essential that you know what insurance you have in place and whether you need additional cover,” said GoCompare’s travel expert, Sally Jaques.
“If you’re off on a skiing trip or planning a long-term break, you might not have enough cover from your bank account’s travel insurance policy.”
When it comes to finding the right travel insurance policy for your needs, check:
You'd easily think that having more insurance is better, but that’s not usually the case. Over-insuring could result in you paying more at renewal should you make a claimSally Jaques, GoCompare’s travel insurance expert
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.