Duplicate Insurance – How It Happens, Why It's a Problem, and How to Prevent It
A few weeks ago I sat with a new client. She was sure she was perfectly covered – she had health insurance through work, private insurance she bought herself, and another coverage that was added when she took her mortgage at the bank.
When we went through everything together, we discovered she was paying for three insurance policies that cover almost the same thing. Every month. For four years already. Total? Over 15,000 shekels thrown away.
What Is Duplicate Insurance?
Duplicate insurance is a simple situation: you have two insurance policies (or more) that cover the same thing. Sometimes completely identical, sometimes overlapping significantly.
Most people think that if they have more than one insurance – they're 'more covered.' Makes sense, right? But in practice, it doesn't work that way.
How Do People End Up in This Situation?
This is the question that surprises people most. Because they didn't do anything wrong. It just happens.
Common Reasons for Duplicate Insurance
- Insurance through work + private insurance – coverages are sometimes completely identical
- Switching between insurance companies without canceling the old one – the old policy keeps running
- Coverage added without you understanding – with credit cards, mortgages, 'great deals'
- Nobody ever sorted it out – there's no one looking at the full picture
Why Is Duplicate Insurance a Real Problem?
First of all, money. You're paying more every month for something that gives you zero extra value. Hundreds of shekels per month, thousands per year.
Second, confusion. When there are too many insurance policies, it's hard to know what's really covered and what isn't. And during a claim, that confusion can be costly.
Third, sometimes duplicate insurance actually complicates claims. The companies start arguing between themselves about who should pay, and the customer gets stuck in the middle.
And most importantly – that money could be working for you elsewhere. Saving for kids, increasing pension, putting aside for emergencies.
Common Examples of Duplicate Insurance
The Most Common Situations I Encounter
- Private health insurance + health insurance through work with identical coverages
- Life insurance with the same purpose from multiple sources
- Travel insurance from credit card + travel insurance you bought separately
- Disability coverage from pension + private disability insurance
Want to Check If You Have Duplicate Insurance?
A quick check of your insurance portfolio can save you a lot of money – no obligation.
Quick Explanation on Duplicate Insurance
How Can an Insurance Agent Help?
This is where the advantage of an insurance agent who works with all companies and sees the full picture comes in.
An insurance agent sits with you, goes through all the insurance you have – from all sources – and identifies overlaps. They explain what actually provides value and what just costs money. Then they recommend what to keep and what you can let go of.
The Goal Isn't to 'Reduce Insurance'
- The goal is to keep only what you really need
- To make sure there are no gaps in coverage
- And yes, this usually saves money too
When Should You Check If You Have Duplicate Insurance?
- If you have more than one insurance – of any type
- If you recently changed jobs
- If you switched insurance companies and didn't verify the old one was actually canceled
- If you took a mortgage and they offered you 'supplementary insurance'
- If you have a premium credit card with 'insurance benefits'
- And especially – if you haven't had your insurance portfolio reviewed in recent years
Frequently Asked Questions About Duplicate Insurance
In most cases, no. There are types of insurance that pay based on actual damage – and then you only get one payout. There are other types (like life insurance) where you can receive from multiple policies.
Gather all your policies – from work, private, from the bank, from credit cards – and check what each one covers. Or sit with an insurance agent who'll do it for you.
No. It's not illegal. It's just not smart. You're not breaking any law – you're just wasting money.
It depends on the situation. I've seen clients save hundreds of shekels per month, and others who saved thousands per year. On average, we're talking about significant savings.
The Bottom Line
Duplicate insurance isn't a mistake made by 'irresponsible' people. It's a result of a complex system where nobody looks at the full picture.
One check can sort things out, save money, and leave you with the right insurance – not duplicate.
“Many people pay for duplicate insurance without knowing. Not because they're irresponsible – but because nobody sorted it out for them. That's exactly what a good insurance agent does.”
— Edi Efraimov
A quick check of your insurance portfolio can save you a lot of money – no obligation, no pressure. Just knowing what you have and what you really need.
