Can I Have Two Auto Insurance Policies?

The first official car insurance policy was purchased by Mr. Gilbert J. Loomis in 1897. It wasn’t long before more insurance carriers sprung up, and new car owners realized the benefits of having protection. Today, every state except New Hampshire requires drivers to obtain a minimum amount of car insurance. That begs the question, “Can I have two auto insurance policies?”

The short answer is “it’s not a good idea,” to have two auto insurance policies for one car. In actuality, there is no specific law against having two policies on one car. It is only when you “activate” those policies for a claim that there will be trouble. You might think that with two policies you could be paid twice for the same accident. However, that is considered “unjust enrichment” and would be deemed insurance fraud.

In other words, you would be paying for two polices that you could never use. You would also have to add all the potential drivers of your car to both of those policies. Additionally, when you register your car with the DMV, you have to report your insurance carriers. If the insurance finds out you have double coverage, they could both cancel the policies. Again, this pertains to two policies on a single car, which is not a good idea.

The Nevada Mandates

In 2018, Nevada made it official: Car owners need to follow the 25/20/20 rule for automobile insurance. The Nevada Division of Insurance explains it as follows: ” The minimum motor vehicle liability insurance coverage will increase to $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage.”

That is the minimum, but you can purchase additional coverage that provides more protection. If you were looking for the kind of added payout that you might get from two insurance policies, you could consider expanding your existing policy.

Supplemental Insurance

For instance, you can make your policy comprehensive, which covers you against theft or collision damage. It also provides coverage for damage from fires, flooding, vandalism, or falling objects.

Additionally, you can add uninsured motorist (UIM) coverage that would protect you in an accident with a motorist who does not have insurance at the time of an accident. There is also Medpay insurance, which pays medical expenses, regardless of who is at fault in an accident.

If you own a luxury or classic car, you might need to have coverage that goes beyond the minimums. That is because of the value of that car. For instance, it might cost only $1,000 to replace a bumper on a Toyota, but $10,000 to replace a bumper on a sportscar as this new Ferrari owner found out the hard way.

Those policies would be considered supplemental insurance, not a “second policy.”

Multi-State Car Insurance

A car insurance policy is considered national. In other words, the insurance you purchase in Nevada will cover you if you drive to California. It also covers you if you live in one state but work in another. However, the state where you buy the policy should be the one where your car “spends the night.” This is common back east for people who live in Connecticut but drive to New York for work.

The exception would be for multiple vehicles. For instance, if you drive a car in Nevada but have a vacation home in Montana with a different car, then you would need a second policy for that second car.

Your job might also require you to drive two cars: one for work and one for personal use. In that case, you would need two auto policies, one for each vehicle.

When Insurance Disputes Arise

Just because you have a strong insurance policy does not mean there won’t be disputes after an accident. Insurance companies are never happy about paying out claims, valid or not. If you find yourself in a battle with an insurance company over an auto accident, you’ll want to talk to the Law Office of Matthew Sharp. We have decades of experience taking on the big insurance companies and finding a fair settlement for our clients.

Call to set up a consultation today to discuss your insurance company dispute.