It may happen that you have taken out two insurance policies that cover the same risks. In this case, you are “double insured”. It is obviously preferable to avoid this situation: you pay two premiums while you will only be compensated once. In the eyes of the law, you cannot recover more than what you lost.
Double insurance: definition
Double insurance, or competition of insurance, means that a loss can be indemnified by two different insurance companies, or even more. Why this situation? You have taken out the same type of insurance twice. Or your assurances are largely redundant.
You live, for example, under the regime of legal cohabitation. You and your partner may each have family insurance. In this case, you must cancel one of the two insurances because single-family insurance is sufficient for both of you.
How do I check if I am doubly insured?
The first step is to draw up an inventory of your insurance: those that you have concluded with an insurance agent but also those that you do not think of directly. For example, the mobility guarantee for your new car ( breakdown assistance provided by your car manufacturer) and the travel insurance linked to your credit card are most likely duplicates.
It is then necessary to check if these insurances correspond to your needs. It is wise to carry out this process every year or at least at important times in your life: when you begin cohabitation or when you get married, in the event of a breakup, birth, the purchase of a car or a house…
When evaluating your insurance, it is best to seek professional advice from an insurance agent. He will be able to tell you which insurances are duplicated but also which coverages it is better to keep. Be that as it may, exercise caution when canceling insurance: there are rules to follow.
Can I be compensated twice?
You are doubly insured but unfortunately, you will never receive double compensation. The law provides that damage insurance cannot be used to enrich you, but only to compensate you. For example, your hospitalization costs are reimbursed to you only once, even if you have two hospitalization insurance policies.
Double insurance is useful only if the guarantee of one of them is completely exhausted. This only applies when the damage you have suffered exceeds the maximum compensation of the insurance. In this case, the damage suffered is not yet fully compensated and you can therefore file a second claim with another insurer. You can thus benefit from full compensation, provided that the loss is covered by the guarantees.
What insurance compensates for my damage if I am doubly insured?
If you are doubly insured, you can choose the insurer you contact first. The latter is, in principle, required to compensate you.
Most insurers, however, have agreements in place to determine which insurance should come in first.
- Compulsory auto liability insurance and compulsory work accident insurance from the employer always come first.
- Insurance taken out on a personal basis, such as family insurance, takes priority over insurance taken out for a group of people, such as school insurance.
What if I go on vacation? Do I need to take out additional travel insurance?
Travel insurance may include one or more of the following coverages:
- cancellation insurance: financial compensation in the event of cancellation of a flight or hotel reservation;
- baggage insurance: in the event of theft or damage to baggage;
- breakdown assistance: in the event of a breakdown of your vehicle;
- assistance to people: if you or a member of your family encounters a problem;
- accident insurance: compensation in the event of disability, death, and reimbursement of medical expenses after an accident.
Only cancellation insurance and baggage insurance are specific to travel insurance. For the other three guarantees (breakdown insurance, personal assistance, and accident insurance), there are separate insurances that you can take out for a whole year. Travel insurance, on the other hand, is often valid for a limited period. So first check whether you have already taken out one of these separate insurances before taking out travel insurance.
What about credit card travel insurance?
Some credit cards include travel insurance that offers one or more of the following guarantees:
- cancellation insurance;
- baggage insurance;
- assistance to people (worldwide);
- breakdown assistance (generally limited to Europe).
However, some travel insurance linked to a credit card is only valid if the trip was paid for with the credit card. For others, it is sufficient that the trip has been paid for from the current account.
For the last two guarantees, keep in mind that the assistance is valid for a limited period, while the breakdown assistance and the assistance to people from car insurance are valid all year round.
Does driver insurance duplicate hospitalization insurance or guaranteed income?
Several insurance policies cover medical expenses and the consequences of bodily injury. This is, in addition to driver insurance, mutual insurance, hospitalization insurance, industrial accident insurance, guaranteed income insurance, and assistance insurance.
There are important differences between these insurances, not only with regard to the guarantees but also with regard to the situations in which they intervene. Driver’s insurance compensates you, for example, only if you have an accident while driving a car.
- Driver’s insurance can cover medical expenses that are not reimbursed by mutual insurance.
- Unlike workers’ compensation insurance, driver’s insurance also covers you if you’re not on your way to work.
- Assistance insurance sometimes only reimburses medical expenses abroad; driver’s insurance, on the other hand, covers costs both in the country of residence and abroad.
- In comparison with hospitalization insurance or personal insurance, driver insurance sometimes compensates you for your incapacity for work and your relatives receive a lump sum if you die.
- Compared to guaranteed income insurance, driver’s insurance reimburses medical expenses and your loved ones receive a lump sum if you die.