Double insurance is a term for two types of insurance policies for the same person, property, or event. It includes two forms of coverage that may overlap or be redundant — but it can also provide protection from a completely different perspective.
In some ways, this type of policy is like having both collision and comprehensive coverage on your car: you are paying extra just in case anything unexpected happens.
About Double Insurance
There is nothing wrong with protecting yourself if you have the resources to do so, but you should take the time to compare coverage and rates before purchasing another policy. It may also be wise to contact your current insurance company and ask them if they offer a double insurance package that could help save you some money.
If you are going to go through the trouble of purchasing two separate insurance policies, consider canceling one once the other kicks in. It is important that you evaluate your needs. It give some thought to whether or not the extra coverage is really necessary.
For example, if you have both a fire and a homeowner’s policy for your home, you may not need both if your risk of property damage due to a fire is low.
Different types of policies
A double insurance policy includes two types of coverage. These are:
Comprehensive coverage
For example, this would be a policy that not only protects you in the event of a fire. But also any structural damage caused by it.
Collision insurance
This is another type of property and personal accidental-damage policy that protects you from physical and mechanical damage to your car.
One of the most common double insurance policies is a life insurance policy and a health care policy. Some people have both to ensure that their family is protected if anything happens to them. But, there are other alternatives as well, depending on your health and financial needs.
For example, you can also have a dental insurance policy in addition to your major medical coverage. It may work just as well — especially if you already have good dental coverage through your employer with little or no cost to you.
Benefits of Double Insurance
If you are paying a higher premium for your insurance, there may be a way to save on the policy. There are two ways that this can happen:
Reduce premiums through double insurance. You may be able to get collision and comprehensive coverage for the same price as one. If your car insurance is already paid for an adequate amount of time or has no need for additional coverage.
Increase savings if you have collision insurance on your vehicle. This type of coverage may provide you with additional savings and peace of mind. As well as a chance to have your car repaired without having to worry about paying extra out of pocket.
If you feel that your insurance provider is not making their fair share, double insurance may be a good fit for you.