Car insurance overlap

Car insurance overlap occurs when two or more active policies cover the same vehicle for the same period, creating duplicate coverage. Overlap often happens if drivers switch insurers before canceling their old policy, as seen with State Farm and GEICO customers in 2023.

Insurers like Progressive may deny claims during overlap due to coordination of benefits clauses. Double premiums result from overlap, leading to unnecessary costs; for example, average U.S.

Car insurance rates reached $2,014 annually in 2024 according to Bankrate. Most states prohibit collecting twice on a single claim under overlapping policies, enforcing anti-fraud statutes such as California Insurance Code §1871.4.

Lease agreements sometimes require continuous coverage, causing accidental overlaps if lessees add new policies without ending prior ones, per YourInsurance.info. Overlapping liability limits do not stack–if both Allstate and Farmers insure one car simultaneously at $50,000 each, payout caps remain at $50,000 per incident total.

Policyholders can avoid overlap by confirming cancellation dates with both insurers and obtaining written confirmation; NAIC recommends this practice nationwide since 2019. Car insurance apps like Root and Lemonade alert users about potential overlaps using real-time policy tracking features introduced in late 2022.