Can I have two travel insurance policies and claim both?


I’m going on vacation to Egypt with my family in August. Having witnessed airport chaos and flight cancellations this year, one of the first things I did after booking was to get a decent travel insurance policy.

But I have since discovered that the checking account I recently opened offers me free worldwide travel insurance – so I now have two sets of cover for the same trip.

I hope I won’t need to make a claim, but I don’t know what will happen if I do.

Would being doubly insured invalidate my policies? If not, could I claim both and potentially get double the payout? TM via email.

Coupled: Our reader ended up with two insurance policies for the same trip

This is Money’s Emilia Shovelin responds: Having the right travel insurance – and getting it as soon as you book your holiday – is especially important right now.

With international travel at its peak and airports at breaking point, taking out a comprehensive policy with disruption cover seemed like a smart move.

However, you have since learned that your current account provides you and your family with comprehensive global coverage.

This is a fairly common feature of major bank Premier accounts, but you only realized you were covered after you had already paid for separate insurance for your trip to Egypt.

We explain the rules for multiple travel insurance policies, as well as other types of coverage such as auto, home, and health insurance.

Is it OK to have two travel insurance policies?

The biggest concern when it comes to having two travel insurance policies is knowing which provider to turn to if you need to make a claim.

If you have double coverage, one insurer may ask the other to contribute to your compensation.

This could significantly delay your claim and you may also have to pay two excess fees.

Making two separate claims, rather than just one, could also mean an increase in your insurance premiums in the future.

Don't worry: travel insurance can cover you for everything from lost luggage to canceled flights and emergency medical coverage

Don’t worry: travel insurance can cover you for everything from lost luggage to canceled flights and emergency medical coverage

“It’s better to insure once and insure well,” says Helen Phipps, director of Compare The Market.

“If you wish to make a claim and have two insurance policies, you must register the claim with both insurers and inform them that you have multiple active policies.

“If you have two insurance policies and need to make a claim, both insurers may suggest the other pays.

“Ultimately, if both insurers end up paying a share of the costs, you may be subject to two deductibles.”

Although having two insurance policies is not illegal, having a good one is usually a better bet.

Ceri McMillan, travel insurance expert at GoCompare, adds: “It is not illegal to be doubly insured, but it can make the claim more complicated.

“The more complicated a claim – and the more insurers involved – the harder it can be to be triaged.”

So which one should you cancel? First, you need to compare what your travel insurance with HSBC offers against the policy you purchased when booking your holiday.

You’ll generally want to stick with the policy that covers the most diverse contingencies and pays out the largest sums.

> We explain what to look for in a good travel insurance policy here.

Phipps said, “It’s a good idea to carefully compare policies and prices. The insurance provided by your bank may cover you, but it may be quite basic.

‘Whereas a standalone policy is independent of any other service and caters specifically to your needs.

“If you decide you no longer need a policy, cancel it.”

What about auto or home insurance?

In the case of home insurance, it is common to purchase buildings and contents insurance from two different providers and this does not count as double coverage.

However, as with travel insurance, if two policies cover the same thing, it might be more difficult to make a claim.

When it comes to auto insurance, experts say motorists often unknowingly find themselves paying double premiums when they don’t need to.

Darryl Bowman, of flexible car insurance provider, Cuvva, says: “With car insurance, it can happen innocently.

“For example, someone might buy temporary insurance on a friend’s car, and then it turns out that their friend’s policy covers the additional drivers.

No Claims: If you have two car insurance policies and need to make a claim, you could be stuck waiting for your insurers to decide who is responsible for paying your claim

No Claims: If you have two car insurance policies and need to make a claim, you could be stuck waiting for your insurers to decide who is responsible for paying your claim

Bowman recommends that you waive any additional auto insurance premiums if you end up with double coverage.

He said: “Unless an insurer is covering something extra there is no need to pay double for the same thing.

“You also run the risk of losing two no-claims discounts with both insurers. »

It is not illegal to have two car insurance policies for the same car, but it is illegal to claim the full amount from two different insurance companies.

Bowman adds that it’s worth checking the terms and conditions because in some cases holding two car insurance policies could render them invalid.

It says: “Some insurers may include a clause in their policy stating that if you hold double insurance for the same risk and you do not provide written notice to the insurer that you are covered elsewhere, you run the risk that your policy is cancelled.

Can I have two life insurance policies?

Unlike most other types of insurance, over 50 life insurance, commonly used to cover funeral and other expenses after someone dies, is an area where it is relatively normal to have more than one font.

A spokesman for insurer SunLife said: ‘Life insurance for the over 50s is a good example of insurance where you can have more than one policy.

“A lot of customers buy one first and then, as funeral costs go up over the years for example, they might buy another plan to increase their coverage.”

However, sometimes there is a monetary cover limit, so if you have multiple policies you should check that you are still within this limit.

It’s also worth checking your insurance policy to make sure there are no conflicts or to see if you have a “deductible clause”.

A “deductible clause” means that you may be able to claim a second insurance policy if the total amount of your claim exceeds the coverage limit of your first policy.

How to compare travel insurance

The fastest and easiest way to save money on travel insurance and compare the best policies is to use a comparison site.

While the results are broadly the same on most comparison sites, they may differ slightly, so it’s worth checking a few out.

Also check insurers such as Direct Line and Aviva that don’t appear on comparison sites and if you’ve ever had serious medical issues, consider a specialist insurer or broker.

This is Money has partnered with Compare the market to help you find great travel insurance. You can compare prices, coverage, features and specials via the link below.

> Travel insurance: Check policies with Compare the Market

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