Experts are warning that motorists could unintentionally be paying for their car insurance twice, costing them hundreds of pounds extra.
New data suggests that 3.1 million drivers have accidentally “double insured” their vehicle at least once in the past.
This occurs when drivers needlessly have two policies covering the same vehicle at the same time, which was admitted by eight per cent of drivers.
This represents just under six per cent of all UK adults who have admitted to the blunder, which could leave them hundreds of pounds out of pocket.
In the event that they needed to claim, only one of the insurers would pay out, meaning there is no benefit to having two insurance policies.
Insurance policies have a two-week cooling-off period, allowing motorists 14 days to cancel their new policy without paying any additional fees.
If drivers miss this two-week window, they will either pay for two policies at the same time or have to pay to cancel one of the policies.
This could be disastrous for motorists as insurance costs remain expensive, even if they are significantly cheaper than they have been in recent years.
Millions of drivers have admitted to being double insured
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GETTY
According to fresh data from Renewal, a personal finance app powered by Go.Compare, drivers are paying an average of £403 for an average insurance policy.
Accidentally paying for two policies could result in drivers paying more than £800 for their insurance at a time when the cost of living crisis continues to impact millions.
Some drivers will be even worse off, including those aged between 17 and 24, who are paying an average of £757 for their policy.
Younger drivers who may still be getting used to managing their motoring details could unintentionally be slapped with costs of up to £1,500 if they are not careful.
Drivers could be paying hundreds of pounds extra for their car insurance
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GETTYThe new data has prompted a warning from experts, including Matt Sanders, money spokesperson at Go.Compare, to be more careful.
He said: “It’s much better to be double insured than uninsured, but it’s still something you’ll want to avoid so that you don’t waste any money on cover that you don’t need.
“There aren’t any benefits to being double insured – if you need to make a claim, it’s likely that the two insurers will share the payout.”
He acknowledged that it can be tricky to keep an eye on motoring documents, especially if they are used to automatically renewing their insurance.
Young motorists continue to face the most expensive car insurance prices
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PAMr Sanders highlighted how critical it was for drivers to remember the 14-day cooling period if they made the error of being insured twice.
He noted that the cost of cancellation policies will vary depending on the provider, but can be very expensive regardless.
The expert added: “In which case, you’ll need to consider which policy will cost you the least to cancel in the long run.
“Remember to factor in the premiums for both policies, too. While one might have lower cancellation fees, you could end up paying more in the long term if the other policy has a much cheaper premium.”