Is It Possible to Claim Insurance from Two or More Companies?

December 1, 2020

For Some Claims, Yes - But Don't Commit Fraud

The short answer is actually, yes.
Insurance can be claimed from two (or more) insurance companies in a number of legitimate situations. In some cases, the practice is by design. In other situations, it is not, but can still be accommodated by some insurance contracts.
In no case, does the insurance contract or application anticipate that multiple policies be put in place without all parties knowledge and consent.
Attempting to profit from purchasing and claiming multiple insurance policies without notifying the carrier is likely a form of fraud and therefore a criminal act.

"Attempting to profit from purchasing and claiming multiple insurance policies without notifying the carrier is likely a form of fraud and therefore a criminal act."

Still… there are cases where multiple insurance policies can, and are, claimed for the benefit of all parties.
NON-INDEMNITY : Some insurance is written as a Non-Indemnity contract. Non-Indemnity means that there is no specific limit to a loss or compensation received by the insured. Life insurance is an example of Non-Indemnity insurance:

Life Insurance & Accident Insurance - many people have life (or accident) insurance policies with more than one company. Policies will pay the face amount of insurance regardless of the amount provided by other carriers.

Caveat - When applying for life or accident insurance coverage, an application will ask if you have purchased, or are applying for other insurance coverage. Insurance companies will determine if the total amount of insurance applied for is reasonable for someone in your

financial situation and may deny or limit coverage amounts accordingly.

INDEMNITY: Many types of insurance are written within the concept of indemnity . Indemnity means that the insurance is written to compensate for a specific amount or limit of loss. Examples include:

Disability Insurance
Caveat - Disability policies may be purchased and coverage stacked, however applications for this coverage request information about other policies purchased or applied for. Maximum amounts of disability coverage is typically set by the state of residence based on income level. Insurance companies will not knowingly issue coverage in excess of those limits.
Property Insurance
Caveat - Property coverage for smaller risks is typically not layered or stacked. Normally there would be no reason to have two separate policies to insure the average home. Personal property policies contain clauses to prevent multiple contracts written to “profit” from a loss. An example of such clause in an homeowners policy is found below:

For larger commercial buildings, coverage for property insurance may be layered and written in coordination by numerous companies.

THIRD PARTY EXAMPLES:

Casualty (Liability) Insurance
Caveat - Liability (third party) coverage can be written in layers shared by multiple companies. In the personal realm there can be primary/underlying insurance coverage written with an Umbrella or Excess liability limit written over the top.
In larger commercial accounts, companies may coordinate coverage by accepting the risk of different layers of coverage.

Indemnity contracts are written to make the insured whole following a loss. An attempt to profit from a loss by secretly purchasing multiple policies and then attempting to claim from each is an act of fraud and a punishable criminal act.
On the other hand, there are legitimate situations where insurance may be spread among numerous carriers and still be in line with the contracts underlying principle of indemnity.
Have additional insurance questions? We LOVE to help. Please feel welcome to call us at 607-324-7500.

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.