When asking ‘can car insurance overlap,’ the truth is that yes – it certainly can. It’s not uncommon for one policy to come to an end when another starts, and in some cases, the overlapping period can vary from one to seven days. Usually, this might seem like an appealing concept at first, what with being potentially covered by two policies; the reality is very different.
Can Car Insurance Overlap?
In a nutshell and as stated above, insurance policies can undoubtedly overlap. But this isn’t a good thing because, in the immediate future, you could be paying for two policies instead of just one. Most policies will run from a particular start date to midnight on the date of expiration. If you invest in another policy toward the end of your existing one, you’ll be losing out on however many days that overlap.
And that’s not the only concern either; in fact, the next issue could be far more worrying than losing some cash in the short term.
If you have two insurance policies and are involved in an accident while they overlap; the option might be there to double-claim on the incident. Typically, this is unlawful and carries severe penalties. Plenty of people have tried claiming through both of their insurance providers in an attempt to walk away with double the cash. Normally when discovered, the punishments have always been hefty.
The term is called ‘double-dipping,’ and it’s by far one of the most illegitimate ways to make a claim.
What Should You Do If You Run the Risk of an Overlap?
There are several options available to those in this type of position. First of all, you could request a quicker termination and see if your current insurer could perhaps provide a small refund for any of the days owed. Secondly, you could ask your new insurer or policyholder to push the start date back by the necessary amount of time.
You could plan to ensure that any new policy that you sign up to is due to start on a set date. Preferably the day after your existing plan ends.
If the options aren’t available, you may have to accept the fact that your policy will overlap in this instance. When it is due to expire (typically at the end of the twelfth month), you may want to plan ahead and set yourself a reminder to search for a new policy in advance. Experts suggest looking for new coverage a week before your old policy is due to expire, but there’s no harm in acting a little sooner. Just be sure to clearly define when you were hoping for your new plan to begin.
Keeping on top of your policy doesn’t have to be difficult. All you need to do is make a note in your diary of the start and end dates. Its always good to prepare yourself in advance.