Since insurance companies communicate with one another to prevent fraud, you’ll never end up with two pay-outs. As such, having two insurance policies in place isn’t illegal – as you’ll only ever receive the full insured amount, never more.

What coverage is liability only?

When you hear someone say “liability only,” they’re actually referring to two types of coverages that go hand in hand, not one: bodily injury liability and property damage liability. Together, these coverages help pay for the other person’s medical expenses, lost wages, vehicle repair, vehicle replacement, and more.

Do you have to have the same insurance for all your cars?

Car insurance companies, and state laws, normally require that liability limits on all vehicles on your policy are the same, so there is no confusion as what your liability limits are on any of your vehicles if you’re in an accident. When it comes to other coverages you have more control.

What happens if I drive the second car on a car insurance policy?

If the driver of the second car on the policy, the one with full coverage, were to drive the primary vehicle, he or she would have only liability coverage if in an accident, since that is the only coverage purchased for that vehicle.

Is it illegal to have double coverage on one car?

In some states, double coverage for a single vehicle will not even be written by the same insurance company. In that case, you would have to shop around for another policy with another insurance company (though in many states it’s illegal to stack coverage).

How much does it cost to insure two cars?

If you want both cars on one policy, the multi-car discount average for a second vehicle on your insurance is between 10 and 25 percent. The more vehicles you add to your policies, the lower your rates will be as compared to purchasing separate policies for each.