Having 2 insurance policies for the same car

TELLIT01

My wife uses her car very little at present but our niece's car is on its last legs. We would like to allow our niece to have the use of the car, but don't want to put our NCD at risk by adding her as a named driver. Is it permissible to have 2 policies for the same vehicle? It would be a case of our niece taking out new cover with her as the main driver.

We don't want to sell, or give, the car to our niece at present as my wife will need it back occasionally.

TadleyBaggie

It's legal under not advised. If the car gets damaged and there is no 3rd party to recover costs, which insurance company should be used to repair or write off the car?

TELLIT01

https://forums.moneysavingexpert.com/discussion/comment/81964731#Comment_81964731

Valid point, but presumably the insurer of whoever was driving would be responsible.

Baldytyke88

You could just insure her to use the car on a daily basis? It could work out cheaper, depending on how often she drives it.

https://goshorty.co.uk/temporary-car-insurance/?utm_source=google&utm_medium=cpc&utm_campaign=generic&utm_content=cpc+-+generic&gad_source=1&gad_campaignid=10343911845&gclid=CjwKCAjw7vzOBhBxEiwAc7WNrzj6ChWCJakWn0wxHIfruj-Y9nFmPxOJa-vxgwVauNIKuk6mXxy3thoC-FcQAvD_BwE

teaselMay

https://forums.moneysavingexpert.com/discussion/comment/81964738#Comment_81964738

It's not that simple though, over 30 years I've had 3 cars written off, they were all parked at the time. One stolen and burned out, one driven into and they failed to stop, one rolled onto it's roof by a group of lads.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81964738#Comment_81964738

So what happens if it's stolen and involved in an accident? Both insurers are potentially on the hook which is why some insurers T&C's specifically say no multiple policies so you may end up invalidating your insurance.

GrubbyGirl_2

Why not get your niece to insure it and your wife be a named driver? You may find you have problems if you do need to claim when your wife is insured as the main driver when she isn't

MyRealNameToo

It's legal but often against the terms on the policy, not directly a problem as long as you accept claims are likely to be slower. The main issue is that your policy would also be the RTA insurer.

Let's say she has a few too many sherbets and decides to drive or allows a friend to drive the car assuming they have Driving Other Cars on their own insurance but they dont and they hit a pedestrian. The third party would have a legitimate claim under your insurance as the RTA insurer of the vehicle. However as the driver wasnt named on your policy you will have refund your insurers on whatever they have to payout having allowed (directly or indirectly) for someone uninsured by your policy to have used your vehicle. As it's a claim for injuries you can't even make yourself bankrupt to avoid the costs.

Have seen multiple cases of people having to pony up six figure sums for similar problems (offspring using the car and policyholder won't report it as theft, friends/buyers not having DoC, not cancelling the policy after sale etc).

I would consider getting her to have the sole insurance on the vehicle but she'll have to correctly declare owner/keeper and given the distant relationship it may put up prices (in a similar way to Clarkson's comment on the worlds fastest car is a hire car)

TELLIT01

I get the clear impression that what seemed a good idea, isn't. Thanks.