Can you have multiple travel insurance policies?

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When might you need more than one travel insurance policy?

In many cases, credit card travel insurance benefits are low, the excess is high and you can't get cover for pre-existing conditions. If that describes your card's insurance, there's nothing stopping you from getting an additional standalone policy, which will usually offer better cover and more flexibility. You may want multiple travel insurance policies in the following cases:

• If you buy standalone travel insurance, even though your credit card also provides free travel insurance.
• If you buy standalone travel insurance, even though your bank account offers travel insurance as part of your account package.
• If you buy standalone travel insurance, even though one of your other forms of insurance includes travel cover as an add-on.
• If you have an annual travel insurance policy in place but take out a single trip policy to cover specific losses not covered under the annual policy.

Can I receive cover from both travel insurance policies?

While it's possible to have multiple policies, it's not possible to receive a pay out from 2 policies for the same loss. Australian insurance law stipulates that if you hold 2 insurance policies with identical coverage, both insurers can share the cost of covering the claim, but are not required to pay out 100% of that claim.

The only exception to this is in relation to death or permanent disability cover, where insurers are required to pay out the benefit amount stated in their policies, regardless of what other insurers have paid.

Disclosing other insurance in the event of a claim

A common exclusion included in travel insurance policies relates to other sources of reimbursement. A typical travel insurance product disclosure statement (PDS) will state that if you are able to receive compensation from any other source for your loss, the insurer will only pay the difference between the benefit amount and the amount you receive from that other source.

This also applies to other insurers. If you have cover under more than 1 policy, you must inform your insurer of this and provide details of the other insurer and the policy. This is because if your insurer pays out your claim, they can then seek a contribution from the other insurer.

Vice versa, if you claim from the other insurer and they only provide you with a partial pay out, your insurer will pay you the difference between what you received and your insured benefit amount.

What happens if I don’t disclose both policies?

If you don’t disclose your other forms of cover to your insurer, the penalties could be even more severe. Insurers investigate all claims thoroughly and share this information, so if you claim on 2 policies without declaring, it’s likely one or both will find out.

Moreover, any purposely fraudulent statements regarding other policies could mean your cover will be voided, your policy cancelled and you’ll possibly wind up in court.

Frequently Asked Questions

• Is it legal to hold more than one travel insurance policy?

  Yes, it is legal to hold more than one travel insurance policy. The legality issue typically arises when a policyholder attempts to claim the same loss from multiple insurers without disclosure. Australian law requires you to disclose all relevant insurance policies to your insurer when making a claim.

• Does having multiple policies increase my claim payout or excess?

  No, having multiple policies does not increase your claim payout beyond your actual loss. You cannot receive double the amount of your loss. Each insurer will pay their share up to your total loss. Your excess will typically apply per claim, per policy, so you could end up paying multiple excesses if you claim from both.

• If I have two policies, which insurer should I contact first to make a claim?

  You should contact the insurer for the policy you believe offers the most comprehensive cover for your specific claim first. Regardless of which insurer you approach, you must inform them about any other travel insurance policies you hold that might cover the same incident. They will then coordinate with the other insurer if necessary.

• What if my travel insurance policies cover different types of losses or events?

  If your policies cover distinctly different types of losses or events, then the principle of "not receiving a payout from two policies for the same loss" does not strictly apply. For example, if one policy covers medical emergencies and another offers specific cover for adventure sports gear, you would claim each loss from the relevant policy. However, you still need to be transparent about all policies when making a claim.

• What happens if I accidentally purchase two travel insurance policies for the same trip?

  If you accidentally bought two identical or overlapping policies for the same trip, contact both insurers immediately. They may allow you to cancel one policy and receive a refund, especially if it is within a cooling-off period. If a claim arises before you rectify this, you must disclose both policies to the insurer you claim from.

• Are there any advantages to having more than one travel insurance policy?

  Generally, no. For the same event, you cannot claim a double payout. The primary "advantage" is usually to supplement a basic policy, such as free credit card insurance, with a more comprehensive standalone policy that covers gaps like pre-existing medical conditions or higher value luggage. It is not about gaining extra payouts but about ensuring adequate cover where a single policy falls short.

• Is credit card travel insurance considered one of my multiple policies?

  Yes, if your credit card provides travel insurance, it is considered a policy. This means if you also purchase a separate standalone travel insurance policy, you technically have two policies. You must disclose the credit card insurance to your other insurer if you make a claim.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

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