Drivers risk facing a £806 bill due to a common car insurance error, as new data reveals that 3.1 million motorists have accidentally double insured their vehicle at least once. This mistake could lead to unnecessary costs, with the average annual premium currently at £403.
The Double Insurance Problem
According to recent data, eight per cent of drivers have admitted to having two policies covering the same vehicle simultaneously. While being double insured is better than being uninsured, it offers no benefits and can result in wasted money. If a claim is made, insurers typically share the payout, providing no advantage to the policyholder.
Cooling Off Period
Insurance policies include a 14-day cooling off period, allowing drivers to cancel a new policy without fees if they realize the error quickly. However, failing to act within this window means either paying for two policies or incurring cancellation and administration fees, which vary by provider.
Expert Advice
Matt Sanders, money spokesperson at Go.Compare (which powers the Renewal app), emphasized the importance of organizing insurance documents. He stated: “It’s much better to be double insured than uninsured, but it’s still something you’ll want to avoid so that you don’t waste any money on cover that you don’t need.” He added that keeping track of policy details is crucial to prevent accidental double coverage.
Cost Implications
With the average car insurance premium at £403 per year, double insurance could cost drivers £806. Sanders noted that using apps like Renewal can help manage policies in one place, making it easier to avoid such mistakes. If double insurance occurs, drivers should compare cancellation fees and premiums to determine the most cost-effective solution.
“If you do accidentally double-insure yourself, it will be possible to cancel one of the policies to make sure you’re only paying for one at a time, but this can come at a cost,” Sanders explained. He advised considering both cancellation fees and ongoing premiums when deciding which policy to cancel.
