Adding Cover You Already Have Elsewhere
Insurance add-ons are sold through many channels — insurers, banks, retailers, credit cards, employers — and the same protection is frequently bought several times over.
The commonly duplicated covers
Travel insurance, sold standalone and included in packaged bank accounts and some credit cards.
Breakdown cover, sold standalone, included with some motor policies, included with new vehicles, and included in packaged accounts.
Legal expenses cover, added to home and motor policies and included in some memberships and union subscriptions.
Mobile phone and gadget cover, sold at the point of purchase, included in packaged accounts, and sometimes covered under home contents.
Personal accident cover, which appears in travel policies, motor policies, credit card benefits and employer schemes.
How to audit it
List every insurance-like product you pay for, including add-ons within other policies and benefits attached to bank accounts and cards.
Read what each actually covers rather than its name, since two products called travel insurance can differ substantially.
Identify overlaps and decide which single policy provides the best cover for your circumstances.
Why duplication rarely pays double
Most policies contain a contribution clause stating that where other insurance covers the same loss, the insurer pays only its share.
So holding two policies for the same risk usually means paying twice and recovering once, with the added complication of two claims processes.
The exception is fixed-benefit products such as some personal accident cover, which may pay regardless of other policies. Check the wording rather than assuming.
Where the better cover sits
Packaged account travel insurance frequently has age limits and medical exclusions that make it unusable for the people most likely to need it. Check before relying on it.
Credit card cover usually requires the trip to be paid for on that card.
Employer-provided cover ends when employment does, so it should supplement rather than replace personal arrangements.
Practical action
Cancel the duplicates rather than the primary, and confirm cancellation in writing.
Where an add-on is bundled and cannot be removed, factor it in when deciding whether the bundle is worth keeping.
Repeat the audit annually, since benefits are added and withdrawn from accounts and cards without much publicity.
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