Double insurance - what does it mean for you?

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.

Amy Smith
Amy Smith
Updated 11 May 2022  | 4 min read

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What is double insuring?

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.

Key points

  • If you have double cover, each respective insurer might only pay a share of a claim
  • It can complicate the claims procedure
  • Your claim could be registered more than once when it comes to renewal

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?

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.

 

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
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.

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.
Ceri McMillan - GoCompare Travel Insurance Expert

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.