We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is Double Insurance?

By A. Garrett
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Double insurance is the insuring of an individual, dependent, or personal property by two or more insurance companies. Such dual insurance allows those with coverage to claim the full amount from the policies, however the total claim cannot exceed the actual loss or cost associated with the underwritten subject of the policies. Insurance companies are law bound to honor double insurance policies, but the recipient of such policies must satisfy certain eligibility requirements. Underwriters of double insurance policies have the ability to reject or appeal certain claims based on deception or unjust enrichment. Consequently, it is important that individuals insurable under double insurance have an understanding of the independent insurance policies that comprise their dual coverage and know the process for claims and payouts.

People insurable under double insurance must meet certain qualifications. Typically, the insurance must come from a group health plan provided by employers, select organizations, or the government. Spouses may add each other to their respective insurance plans as dependents while their children who work but are still regarded as dependents may be insured under the policy offered by their employer and both their parents policies. Individuals eligible for government sponsored insurance may also be insured by their employer or as dependents. The same rules apply to personal property.

Insured individuals are only allowed to be covered from losses and cannot make a profit from their insurance claims. As a result, one insurance plan is considered the primary and is responsible for paying the maximum amount outlined in the policy. The remaining insurers supplement any costs not covered by the primary policy. This system for determining which insurer makes the initial payment on claims is called the coordination of benefits.

The insurance plan that covers an enrollee directly, either as an employee or member, usually pays first, then the plan under which she is enrolled as a dependent will pay second. When parents insure their children under both of their plans, the insurance company with the parent whose birthday occurs the earliest in the calendar year pays claims first. If the parents are divorced, the insurance policy of the parent with custody is deemed primary. Government issued policies usually pay first.

No two insurance policies are alike. Having double coverage does not guarantee that claims will be automatically covered. Certain policies may explicitly deny coverage of certain subjects, services, or claims caused by certain situations; require the insured to visit repair shops, doctors, or providers approved by the insurance company; or require the insured to receive prior authorization for such services. Failure to divulge the existence of double coverage to insurers may constitute fraud and allow underwriters to appeal claims.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.