Up to 3.1 million motorists may be paying twice for cover without realising and it won’t increase any payout if they make a claim
Up to 3.1 million motorists may be paying twice for cover without realising and it won’t increase any payout if they make a claim(Image: Getty)
Around 3.1 million drivers across the UK could be wasting money by accidentally paying for two car insurance policies at the same time, new research suggests. The data comes from the latest survey by Renewal, the new personal finance app powered by Go.Compare.
The study found that nearly one in 10 motorists (8%) believe they have been “double insured” on the same vehicle, often without realising until weeks or even months later. Go.Compare has warned that having two policies in place does not mean drivers will receive double the payout if something goes wrong. In most cases, insurers will only pay out once, leaving the second policy effectively useless.
This means motorists could be spending hundreds of pounds unnecessarily each year – money that could otherwise be saved or used elsewhere at a time when many households are already feeling the strain of rising bills.
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The problem is commonly caused by policies renewing automatically while a driver has already taken out a new deal with another provider, leading to an overlap in cover.
Matt Sanders, money spokesperson for Go.Compare said: “It can be surprisingly easy to end up with two car insurance policies running at the same time, particularly if you’ve switched providers and forgotten to cancel your old policy.
“Many drivers assume that having two policies will give them extra protection, but that’s not the case. You won’t receive double the payout if you make a claim, so you could end up paying for cover you simply don’t need.”
Others may forget they have agreed to auto-renewal, or fail to cancel an existing policy before switching, particularly if they are focused on securing a cheaper deal.
While it may seem like having two policies offers extra peace of mind, this is not how car insurance works. In the event of a claim, insurers will typically only cover the loss once, and the policyholder will not receive any additional benefit from the duplicate cover.
Go.Compare is urging drivers to check their policy details carefully, especially around renewal dates, to avoid being caught out.
Motorists are also advised to review bank statements for duplicate payments and to make sure any old policies are cancelled as soon as a new one is in place.
Anyone who thinks they may have been double insured should contact their insurer as soon as possible. In some cases, it may be possible to cancel one of the policies and recover part of the cost, depending on the terms and how quickly the issue is identified.
The findings highlight how easy it can be to lose track of regular payments, particularly when many bills and subscriptions are now automated.
With car insurance already one of the biggest annual expenses for drivers, avoiding unnecessary duplication could help people keep more money in their pocket.
Taking a few minutes to check renewal dates and policy details could be enough to prevent a costly mistake – and ensure drivers are only paying for the cover they actually need.
