You can buy two separate car insurance policies as long as you don’t attempt to insure the same car with the same company twice or file two insurance claims for the same accident.

Written by Jasmine Kanter

Edited by Amy Bobinger

Updated on May 3, 2024

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You can legally purchase two car insurance policies in most cases
Insurance rules for having dual insurance
Two car insurance policies may not be the best idea
FAQ
Meet our experts

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You may want to purchase two separate

car insurance

policies if you need a specialized insurance product like classic, commercial, or rideshare insurance, or if you own multiple cars in different states. That being said, it’s usually more cost-effective to add a driver or extra coverage to your existing policy.

You can legally purchase two car insurance policies in most cases

Some auto insurance providers don’t allow you to purchase two separate car insurance policies from two different providers for the same vehicle, but for the most part, it’s legal.

Here’s what to know about a few common scenarios:

Can I buy two policies for one car in one household? Yes. While you can always buy a second policy with specialized coverage for a commercial or ridesharing vehicle, it’s usually cheaper to switch to a provider that’ll let you customize your general policy.

Can I buy two policies for different cars in the same household? Yes. While you can mix and match insurance plans from different providers for classic, recreational, or occasional vehicles, it’s generally cheaper to add a car to an existing policy.

Can I buy two policies for different cars in different states? Yes. You should insure and register a car in the state where it is primarily parked.

Can I buy two policies for one car I drive between different households? Yes, but… You can buy two policies from two different providers for the same car, but since its primary garaging address remains the same, you won’t save on the insurance rates in one ZIP code.

Can I buy two policies for one car with several drivers? Yes, but… It’s legal to buy two policies from two different providers for the same car, but you can’t buy a separate policy for each driver. Every policy must list all of the drivers in the household. To prevent a driver from affecting your insurance rates, they must live at a different address or be specifically excluded from coverage.

Purchasing two car insurance policies on the same vehicle is known as double coverage or dual insurance, and it usually happens by accident. If you buy a new plan and forget to
cancel the old one
, call your provider to cancel and ask for a refund of your unused premium.

Learn more:

How to add a car to your insurance policy

Insurance rules for having dual insurance

If you do find that you need two separate policies, there are several important things to remember:

Count every driver: Each car insurance policy must list every person of driving age in the household.

Follow purchasing rules: Only the vehicle owner or co-owner can purchase car insurance, and the vehicle must be insured in the same state where it’s registered.

Take advantage of permissive use: Friends can

borrow your car and benefit from your coverage with permission

, but most providers limit the number of “permissive uses” allowed per year.1 Check your car insurance policy to see how many times you’re allowed to lend your car to someone before you’re required to add them to your policy.

Use separate companies for separate policies: No insurance provider will insure the same car twice.

You can’t get two payouts from two policies

You aren’t entitled to two payouts even if you’re paying two annual premiums on the same car. The insurance industry cross-checks and records claims in a shared database called the Comprehensive Loss Underwriting Exchange (CLUE), making it easy to catch identical files during the claims process.

Filing a pair of insurance claims for the same accident is a type of insurance fraud known as double-dipping. The consequences include fines, policy cancellation, and criminal charges, and future car insurance providers might even refuse to insure you.

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Two car insurance policies may not be the best idea

There are two drawbacks to paying for multiple car insurance policies from different insurance companies:

Because every person of driving age within your household must be listed on each policy, you’re effectively paying twice the car insurance premiums for everyone.

Because you have two different insurance providers, the adjusters may disagree over who should pay a claim, which can lead to insurance payout delays.

We’ve identified seven ways to meet your insurance needs with a single policy and what you need to know about them:

Solution	Description	Notes
Add a driver	Adding a driver to your existing auto insurance policy lets a household member benefit from your coverage without buying a separate plan.	It’s usually cheaper to add someone to a policy than to purchase separate policies for each driver. Parents who add a young driver to their policy save an average of $2,055 a year over purchasing a separate plan.
Classic car insurance	Classic car insurance matches your collectible’s appraised value, not its average market value.	The average market value of a 1969 Dodge Charger Daytona is $403,757, but its appraised value could be as much as $1.4 million.2
Exclude a driver	Excluding a driver from your policy makes sense if they have a poor credit score or driving record that could drive up your car insurance premiums, but they’ll be banned from using your vehicle.	A serious violation like a DUI can increase a driver’s insurance premiums by over 70%.
Multi-car insurance policy	Also known as family insurance, adding a second car to your current policy provides similar savings to adding a driver.	A multi-vehicle discount could save you 10–15% more than purchasing two separate plans.
Non-owner car insurance	A non-owner car insurance policy gives you liability coverage whether you’re driving a friend’s car, company car, or rental car.	Non-owner car insurance costs are very reasonable—the average plan costs between $600 and $750 per year.
Pay-as-you-go car insurance	You can save money if you’re retired or you want to insure a leisure or recreational vehicle by switching to a low-mileage car insurance provider .	Drivers over 55 who drive less than 7,000 miles per year pay an average of 18% less for coverage.3
Rideshare insurance	You can purchase rideshare coverage as a separate policy or optional add-on, which lets you carry the same coverage on the job and in your personal life.	Adding rideshare coverage to an existing policy costs as little as $10 per month.

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FAQ

Can you legally have two car insurance policies?

It’s legal to buy two car insurance policies as long as you don’t insure a single car with the same provider, or file multiple insurance claims for the same incident.

Can you have two car insurance policies with the same auto insurance policy?

You can buy two separate policies for two separate vehicles from the same auto insurance company, but it’s usually cheaper to add a second car to your existing policy and qualify for a multi-car discount.

Can you be the primary driver on two car insurance policies?

You can be the primary driver on two car insurance policies only if you live alone. If you have multiple cars and multiple household members of driving age, insurance companies require each car to have a different primary driver.

How does secondary driver insurance work?

When you add other household members to your car insurance policy, they get listed as secondary drivers. They’ll benefit from the same insurance coverage while driving your car as you do.

Can you have two cars insured in different states?

You can insure two cars in different states, but each car must be insured (and follow the insurance regulations) in the same state where it’s registered.

Meet our experts

Jasmine Kanter

Jasmine Kanter is an insurance writer specializing in subjects relating to home ownership, car insurance requirements, and driving tips. Jasmine combines her background in communication and languages with a passion for writing to create straightforward, yet comprehensive content that’s accessible to car enthusiasts, beginners, and everyone in between. Since joining the Jerry team, Jasmine has penned nearly 300 articles covering subjects from how to save money on homeownership costs to roadside assistance service reviews.

Prior to joining Jerry, Jasmine worked as a storyboard analyst for Depanneur Films and a training assistant for Assistance Services Group.

Amy Bobinger

Licensed Insurance Agent — Expert Insurance Editor

Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars.

Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.

SOURCES

https://www.nolo.com/legal-encyclopedia/permissive-use-car-insurance-coverage.html

https://www.classic.com/m/dodge/charger/2nd-gen/daytona/

https://getjerry.com/car-insurance/low-mileage-car-insurance