Overlapping insurance

Richard53

If you have a policy covering an existing vehicle, and you take out a new policy on the vehicle without cancelling the first one, is this an offence or against the rules in any way?


The reason for the query is this: I have two motorbikes, both insured on separate policies (with different inception dates) with Devitts. I now find I can get a policy with Bennetts to cover both bikes for about 2/3 the cost of the existing two policies, and it will be fully comp for both bikes (one is currently TPFT). I intend to go for this policy asap. However, to cancel the two existing policies might be expensive. Devitts have some quite serious cancellation charges and I will probably end up out of pocket, even after they have applied pro-rata refunds. In other words, although I haven't done the sums yet, it is probably going to cost me money to cancel, and I'm wondering whether it is possible to leave the existing policies to run the course. After all, I have paid up-front for a year's cover, so I wouldn't be subjecting Devitt to any additional risk.


Don't get me wrong - I am not trying to con anyone, and I was aware of these charges before I took out the policy, so I am not complaining about that. I just want to know if I can quietly forget the two existing policies, let them lapse in due course, and go with the new one, or whether there is a rule or law against doing so. If I have to, I will take the hit and cancel them properly, but not before I have sought advice here.


Thanks in advance for any advice.

PasturesNew

It's not an offence to have something covered under more than one insurance policy. It is an offence to try to claim from more than one though.

Make sure you cancel any direct debits if you do change companies and let the existing policies run/die .... or you might find they dip into your account for your renewal.

Aretnap

Contrary to popular belief there's nothing illegal about having two policies on the same bike. What would be illegal would be trying to claim the full value of the bike from both policies (ie double recovery) in the event of an accident, but you're not going to try to do that.

The thing which might cause you difficulty is your no claims bonus - generally speaking you can only use one NCB on one policy at a time, so if you're trying to use any NCB you had running on your old policy on your new one as well you could be in for problems.

Quentin

If you have earned any NCD (for either bike) bear in mind that you have nil NCD to use on the new policy if you continue to keep the existing ones running as they have the NCD "attached" to them.

SeduLOUs

I suspect that if you do have an accident and either insurance company realises there are two policies it could be problematic. You might end up having to claim 50% back from each policy, although I am only guessing. Can't see one insurance company happily coughing up when another isn't paying anything...

I'd just ask both insurers outright how it would be handled in the case of a claim, as it may not be worth the added hassle for the sake of saving a few quid now.

Richard53

Glad I posted this - thank you all. I had forgotten about the NCD. Of course, the new policy quote is based on the 7 years NCD I told them I had, but Devitts (the existing policy) won't supply proof of NCD for the new policy, of course, as it is 'in use' with them. Damn! I will have to cancel Devitts and take the charges.


Of course I had no intention of double claiming, but I can see that things could get messy if I claimed on the new policy and it popped up on the database for the old insurer to see.


OK, I'll keep it simple and cancel the two Devitts policies and take whatever hit comes my way. I will still be out on top with the cheaper new policy, long-term. I'm going into call-centre hell with this one. My experience of Devitts customer service on the phone has not been good.


Thank you all for your valuable comments.

Aretnap

SeduLOUs wrote: »

I suspect that if you do have an accident and either insurance company realises there are two policies it could be problematic. You might end up having to claim 50% back from each policy, although I am only guessing. Can't see one insurance company happily coughing up when another isn't paying anything...

IIRC you can claim on either policy. The insurer which pays out can then claim a contribution from the other insurer, if they want to. It's not actually an uncommon situation. If you have home/contents insurance which covers your possessions outside the home, and travel insurance which covers the same possessions while you're on holiday then you are double insured. Similarly if you have a half decent contents insurance plocy, and separate policies for your mobile phone/tablet/other gadgets. Nobody seems to panic about how difficult it would be to make a claim m those situations...

Nodding_Donkey

Why not wait until the first policy runs out then switch that one and add the second bike when it's policy runs out?

Mind you, if you think Devitts call centres are bad have you ever actually tried speaking to Bennetts? and I don't mean the sales line who will tell you anything they think you want to hear.

Record the call

Richard53

Because Devitt could not (or would not) offer a 2-bike policy. I had a FC policy on the Yamaha and when I bought the Trident I wanted to add it to the policy. No way, Jose, I had to take out a new policy on that bike, and no NCD allowed because it was all used up on the first policy. Hence I went for TPFT as it was cheaper, and the Trident was a scruffy old shed anyway. I have swapped the Trident for a much posher bike, and I want the new bike on FC cover - but of course that would have been yet another £30 or something to alter the level of cover.


Basically, the girl I spoke to on the phone didn't have a clue, and quoted me several different prices within 5 minutes, ranging from a £50 charge to a £48 refund, and I totally lost confidence that they would treat me fairly in accordance with the T&Cs. Every time I called them, I had at least a 30 minute wait on hold, and I just decided to cut my losses and go elsewhere. As in the other thread, I now have a much better deal.

messes

Some insurers will take into account the NCB on an active policy and give you the equivalent discount on your new policy. Try Adrian Flux(Bikesure) I've always found them to be pretty flexible.

hgotsparkle

I did this last year with my car. My insurance was up for renewal in August but througout June there was an offer with another company, so I took the new policy for the offer and carried on with the existing until it ended and obviously didn't take out a renewal with the existing company.