what do you call the situation when you have two insurance companies for the same damage?

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Asked January 15, 2019

1 Answer

The state of having two insurance companies covering the same damages can be called double insurance or dual insurance, and depending on your exact circumstances could be sensible, risky or completely worthless.

It all depends on the exact text of each insurance agreement; in some cases, company policy will be to negotiate shared fees with the other company. In other cases, they'll self-designate as your primary provider and leave other providers to cover any excess. And some companies sneak into their fine print that they don't recognize dual insurance; thus making your entire policy worthless.

These negotiations and communications between insurance companies can be severely time consuming, and if that could become a problem for you, you should never apply for dual insurance. For instance, the delay caused by such bickering between car insurance providers could be devastating to you, especially if you rely on your car for your livelihood in some manner. Those who work with their cars should never, ever apply for dual insurance under any circumstances; someone who merely relies on their car for transit to work should merely avoid it like The Black Death.

Dual health insurance is governed by the coordination of benefits provision", and as a resultm makes it much safer to own dual health insurance, as one provider is immediately designated as primary. There's no risk of bickering or cancelled service, so you can comfortably create such a plan.

Life insurance can be relied upon if two contracts for the simple reason that, while a person may sabotage their property for money, they're unlikely to kill themselves for it. Multiple life insurance contracts can each be relied upon to pay out their benefits upon the end of the insured life.""

Answered January 16, 2019 by moose02

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