Having a robust car insurance cover is vital not only from a financial safety perspective but also from the perspective of being compliant with the law. As per the Motor Vehicles Act, 1988, all car owners in India must mandatorily purchase at least a third-party car insurance. Driving without a valid insurance cover is a legal offence, and if you are found guilty, you would have to pay a hefty fine. In the event of any unfortunate incident, the insurance will help you get coverage against the repair expenses and other losses.
There may be certain instances when you buy a new car insurance cover for the same vehicle on top of the existing policy, especially if you own a luxury or sports car.
Is it legal to buy multiple car insurance policies for the same vehicle?
Yes, whether you have third-party car insurance or a comprehensive cover, you can legally purchase more than one car insurance policy for the same four-wheeler. It is also possible to have a third paty insurance from one insurer and own damage cover from other insurer.
Things to know about buying more than one car insurance policy
While it is best to have a single policy with high coverage amount, if you have purchased two car insurance covers, here’s what you need to know.
The policies should be purchased from different companies as no motor insurance company offers two separate policies for the same car.
In case you are able to get dual coverage from a single insurance provider, then beware. The issuer may be a fraudulent company that wants to earn through premiums.
Disadvantages of buying two insurance policies for your car
• Firstly, paying for two car insurance policies separately may not be economically viable; you may pay excessive premiums.
• If you have two policies, none of the insurance covers will help you increase the value of your vehicle, i.e., the IDV (Insured Declared Value) remains the same.
• In case of total damage or theft, it will be considered unlawful if you try to claim for the loss from two different companies.
• It may lead to a delay in the claim settlement process.
• There may be a probability that you may violate the terms of one or both insurance policies.
• If one of the insurance companies knows you have double coverage, the company may ask the other insurer to pay for the claims.
To save yourself from the above hassles, let’s understand how you can avoid purchasing multiple policies.
• You must check the renewal date and set up a reminder to make a timely payment. It is best to select an automatic payment mode and instruct the bank to debit the amount on a specific date automatically.
• Suppose you already have a comprehensive cover & want to upgrade the policy. In that case, you can opt for add-ons or riders to improve your policy coverage by paying an additional premium.
Multiple car insurance policies for the same car can lead to confusion while filing a claim and during renewal. Therefore, it is better to have a single car insurance coverage. On the other hand, if you have two different cars, you can purchase two different policies from the same insurance company or a different company.
If you are looking for the best car insurance policy, you can easily buy the cover from Kotak General Insurance, one of the leading insurers in India. You can select Kotak Car Secure, a comprehensive car insurance policy that provides third-party liability and covers all the damages caused to you and your vehicle due to an accident. This way, you get complete safety every time you hit the road.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.