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.
When it comes to finding the right travel insurance policy for your needs, check:
It's not illegal to be dual insured, but it can make claiming more complicated. For example, if you needed medical care abroad and had two travel insurance policies that could payout for the claim, you won't get double the money. Instead, the insurers would decide how they will split the bill.
Ceri McMillan - GoCompare Travel Insurance Expert
The more complicated a claim - and the more insurers involved - the trickier it can be to get sorted. Your claim could be registered twice too, which could push up the cost of insurance next year.
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.