Can I have multiple insurance policies? What are the benefits? Can I claim on two policies?

What is Dual Insurance?

Dual insurance occurs when someone has more than one travel insurance policy that covers the same events. This sometimes happens to travellers accidentallyas they may have multiple policies after they buy a travel insurance policy when they already have annual coverage included in their credit cardor as an intentional purchase to try to beat the system

Why buy multiple insurance policies?

Sometimes your existing travel insurance policy won't have the level of cover you’d likeit may be subject to exclusions or bansor lacks add-ons like cruise or skiing cover. Some savvy travellers are buying extra coverage to pick up the slack on their original travel insurance policy – a small price now that could save you thousands later.

For examplewith the November 2017 eruption of Mt Agung in Balimost travel insurers imposed cover bans for any Mt Agung-related disruptions. While some travellers were waiting for bans to be lifted (a risk which might leave you out of pocket if you find you must cancel your trip) others were buying when news of the volcanic activity brokeand purchasing a second one once the ban was lifted.

Case study: Mount Lewotobi Laki-LakiBali 2025

Daniel and Hannah are a couple in their 30s with two kidsand have just booked their flights to Queensland.

If they buy travel insurance while the bans are in place: They might not be covered for Mount Lewotobi Laki-Laki disruptions in six months’ time even if their insurer lifts the ban next week – the bans may still apply to older policiesdepending on the insurer.

If they don’t buy cover and wait for the bans to lift: Unfortunatelythere are no hard and fast rules to know when insurers will decide to lift their exclusions – they could be lifted in a few weeksa few monthsor a few years! Meanwhileif Hannah’s mum falls illor Daniel breaks his leg and they need to cancel before they buy coverthey are potentially thousands of dollars out of pocket for flights and accommodation.

If they buy cover while the bans are in placeand buy a second policy if the bans are lifted: They’re covered before their trip in case of cancellation or rescheduling. And if the bans are liftedthey can purchase a second policy (from the same company or a different insurer) which will then cover for any future Mount Lewotobi Laki-Laki disruptions whether it be in a weeksix weeks or six months. If the activity of the volcano increasesand the bans are reinstatedthey’d still be protected by their second policy.

Can I claim on both policies and make a profit?

While that would be nicethe answer is of courseno. Insurance is about compensating insured people and returning them to the same financial position that they were in before the loss. Under insurance lawyou can’t claim against both policies and get back more money than you lost.

If when trying to claim their expensesDaniel and Hannah lodged a claim with both their insurers and disclosed that they had multiple policiesone insurer may pay it out in fullor the 2 insurers may split the cost between them.

The Product Disclosure Statement (PDS) for your policy will generally state that if you successfully claim compensation from another sourceyour insurer will only pay you back the difference. Applying for more than 100% of the value would be considered fraudulent.

Hopefully these have answered a few of your questions.

Are you ready to start comparing travel insurance?