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Is there such a thing as being TOO insured? Navigating auto insurance can be very trying at the best of times. Figuring out just how much coverage you need is no exception. One of the bigger worries we have is whether or not we have enough auto insurance coverage. While some people buy into very detailed insurance plans, others may wonder if their one plan is sufficient. They also wonder whether or not they should purchase another plan for the same vehicle.

Is It Illegal?

It is probably a good idea to check with various car insurance companies. They can advise if there would be a conflict in seeking another plan. It is not considered illegal but rarely encouraged. Part of the worry is that there will be a duplication of coverage, but there are actually no broken laws.  Unless you mislead or give false information about your plan, it is not considered fraudulent. There is, however, “unjust enrichment” which means you are receiving multiple payments when you should not. You cannot get doubly paid for a claim. If one plan has a deductible, the other plan will not cover that. You will still be out of pocket.

The Reasons For Wanting Extra Coverage

People seek extra car insurance coverage in many different situations. One, in particular, is in the event of a separation or divorce. It’s completely understandable in this case to purchase another plan, one for each spouse. Divorce can sometimes get ugly, and nobody wants to be left uninsured because their former spouse was seeking revenge. Another reason is in the case of buying a classic or luxury vehicle. A standard plan may not have enough options. Therefore a specialty plan with another company may be advisable. Some seek an additional program if they are considered to be a “high-risk” driver. To clarify, they have previously been in an accident and would benefit from another plan. That person can only be listed on one insurance policy, however. The car can have two plans, but the high-risk driver is only on one.

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Unfortunately, it’s not possible to coordinate benefits between plans. If one program covers up to 80% of the cost of an accident, the other policy will not pick up the remaining 20%. Shopping around for the best plan is worthwhile. You may not have to invest in another plan. Asking questions is important, especially when it comes to your money. In the end, you want to save as much as you can and avoid uncovered costs.

Read Your Insurance Documents Carefully

If you already have a plan and you want to know what you can and cannot do, take a look at your policy and read through it carefully. It should state what covers the plan. That should help you figure out whether or not you have a good enough plan for your vehicle. In the end, though, it is likely in your best interest to stick with one good plan. Otherwise, you may be paying double for no good reason.

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