When auto insurance companies know that you have two coverage for a particular loss, they would work out who should pay the damage. Generally, one policy would be the primary and the other secondary. So, the second policy would only be called to make compensations when the first coverage is exhausted. This would be the case when the damages are larger than the coverage you have on your first policy. If the first cover pays for all the damages the claim would be closed. Policyholders shouldn’t double dip car insurance.
Can I Claim from 2 Insurance Policies
This should answer questions along the line of; can I claim from 2 insurance policies. Yes, you may be able to claim from two separate policies for the same incident but not for the same loss. Consider a situation where your car is broken into and your laptop is stolen from within. Your car insurance would pay for the damages to the automobile and your home insurance may pay for the laptop providing you have coverage. On the contrary, two auto insurance companies wouldn’t pay for the same damage twice.
Can I Have 2 Car Insurance Policies at the Same Time?
Can a car have two insurance policies? The answer is yes but it may be waste of money. So, there is not much point in insuring the same risk over and over again. It is best to keep your money in the pocket. The logic supports this practice as well. Insurance is there to compensate the loss suffered. The idea is that the policyholder should not be much worse off than before the insured losses suffered.
In the same way, policyholder cannot be better off. Otherwise, insurance companies would have to deal with moral hazard. People would pay the thieves to steal their cars so that they can claim from two policies twice the money it is worth. That is the logic behind not allowing you to claim on two separate policies.
Is It Illegal to Get Compensated Twice for the Same Damage?
There are other ways of getting compensated twice for the same insurance loss. And the question of it being illegal has not been answered yet. According to reports from the North Carolina Department of Insurance (NCDOI) a woman was arrested after it is found that she received two compensations for the same damages.
The lady driver in question had her car run into in a car park. She made a claim to her insurer and get paid $1,200 dollars. In the same time she managed to negotiate another $600 settlement with the guy who caused the damages. She was arrested when the insurer found out double dipping insurance claim.
According to the experts it is illegal in North Carolina to have a double dipping auto insurance claims. According to one lawyer, the auto insurer has paid the claims in full and any money received towards the recovery of damages in relation to that accident now should go to the insurer. She has no further claim on the money recovered from third parties who caused the damages or their insurers. And she should have return claim money left over from paying damages.
According to the NCDOI press release the charges were brought for “obtaining property by false pretense”. The North Carolina law says that anyone who takes money with false pretense and “intend to cheat or defraud any person of such money” will be guilty of felony.
Although no further details were released as to how the driver in question was found out and arrested it is likely that the insurer found out in the process of subrogation. When you make a claim through your own insurer for the damages caused by third parties your insurer may pay you quickly to keep you happy.
Then, they would go after the third parties to get back the money they paid to you. The end result should be that the policyholders paid in full and also the money finally comes from the parties who caused the damages or their insurers.
The take out from this story is that if you made a claim on own car insurance coverage for the damages caused by third parties you should contact your insurer before you accept any settlement. If you did you need to tell them how much you received and under what conditions. Otherwise you may go to jail.