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Shared insurance policies: the benefits and risks explained
Do you share an insurance policy with your spouse, business partner or another person? Understand the benefits and rules of these joint insurance policies and what to do if you need help or have concerns about your privacy.
Most people in Australia live with their partner, an arrangement the Australian Bureau of Statistics has projected will continue to grow over the next few decades.
Partnered living arrangements mean that shared insurance policies (that is, a policy with more than one person listed as the insured on your Certificate of Insurance) are common throughout Australia.
Shared insurance policies are also known as joint insurance policies and are used not just by spouses, but by siblings, parents and their children, business partners, and many other groups of two or more people who have a shared interest in an asset.
If you have a shared insurance policy, or are considering entering into one for the first time, it’s vital you understand how they work and what information is accessible to all parties listed on the policy.
Shared insurance policies are often mutually beneficial to all policy holders, providing convenience and peace-of-mind that all parties with a financial interest in an asset are named on the policy.
However, shared policies can pose risks, especially to those at risk of or experiencing family or domestic violence.
Content Warning:
This material contains references to family and domestic violence, which may be distressing for some readers. If you need support, please contact Safe Steps 24/7 by calling 1800 015 188 or 1800RESPECT on 1800 737 732.
At RACV Insurance, your safety and wellbeing are our priority. We provide confidential support if you are concerned about your safety due to family and domestic violence.
In this article
Guide to shared insurance policies
What is a shared insurance policy?
Shared insurance policies at RACV Insurance are those where two or more people or businesses are listed as the insured on your policy's Certificate of Insurance. Each person listed as the insured shares the coverage, rights and responsibilities of the policy.
Shared insurance policies are also commonly known as joint insurance policies.
Who can be listed on a shared insurance policy?
The people or businesses listed on a shared insurance policy must have a financial interest in the asset being insured. For example, a residential home owned by two spouses or an investment property owned by two siblings.
Each person listed on the policy who has a shared financial interest in the insured asset is called a policyholder. They may also be referred to as the insured (or co-insured) or policy co-owner.
What are the benefits of a shared insurance policy?
Shared insurance policies allow multiple people or businesses with a financial interest in the same asset to be covered under a single policy. It can simplify processes like renewals, updates, claims and cancellations by allowing each policyholder to make these requests.
Many people find shared insurance policies useful, but it's important to understand how they work before committing to one.
Making changes to shared insurance policies
Can either policyholder make changes to a shared insurance policy?
Yes, either policyholder can make changes to a shared insurance policy, however, generally all policyholders will need to agree to the change. Major changes may also require signed consent from all policyholders.
If you update personal information such as your phone number or mailing address, these changes and associated information will be available to all policyholders, unless you notify RACV due to safety concerns.
Shared policyholders cannot update another policyholder's personal information.
Can either policyholder cancel a shared insurance policy?
Yes, any policyholder can cancel a shared insurance policy. Note that all policyholders will receive a cancellation letter that can contain your mailing address, including new or updated mailing addresses.
If you require this information to be protected for safety reasons, call RACV on 13 72 28 for specialised support.
Can I remove myself from a shared insurance policy?
If you have safety concerns, contact RACV on 13 72 28 and let the consultant know you need to speak with specialist staff. Anyone listed on a shared insurance policy can remove themself, however, other people on the policy will be notified.
In instances of family and domestic violence, RACV can help by removing abusive shared policyholders. For example, this could mean initiating a new policy without them listed.
Specialist staff can also help you navigate and leave shared insurance policies in cases of family and domestic violence, as well as ensure any correspondence intended for you is not disclosed to the other policyholder.
Where do refunds go if I cancel my shared insurance policy?
Refunds are typically credited to the policy’s billing account but can also be split where an agreement is in place.
In instances of family and domestic violence, refunds can be processed in such a way that your financial or physical wellbeing is not compromised.
RACV has specialist staff who can assist you if you're concerned about your personal information being disclosed to an insured on your shared policy.
How to help protect yourself and your personal information
Do other policyholders have access to my personal information?
All insurance policyholders can access the policy documents, renewal notices and cancellation letters. These documents can contain mailing, product and risk addresses. If you have safety or privacy concerns about a joint policyholder, call RACV on 13 72 28 to discuss what options are available to keep your personal information private.
Confidential, specialised support is available to protect your personal information, including your contact details, if you are experiencing family and domestic violence.
How can I safely update my personal information if I have a shared insurance policy?
Contact RACV on 13 72 28 if you have safety concerns regarding your joint policyholder having access to your personal information. Specialist trained staff can discuss your options via confidential phone calls or emails. Our team can tailor communication to your needs, including finding safe times to call you, leave text messages or voicemails.
Confidential assistance is available across RACV products, such as insurance policies and loans.
What happens if I separate from the other person listed on my shared policy or I no longer hold a financial interest in the insured asset?
A shared insurance policy is still valid if two policyholders separate, so long as they both retain a financial interest in the insured asset and both agree to continue the insurance policy.
If you no longer have a financial interest in the insured asset call RACV to discuss your options, including cancelling the policy.
A shared insurance policy can be updated or cancelled at any time, not just at renewal. All policyholders will be notified of changes made to a shared policy – policyholders who are concerned for their safety should contact RACV on 13 72 28 to discuss how their information can be protected.
Victorians can contact Safe Steps anytime, day or night, for free family and domestic violence advice and support.
What to do if you need help or have concerns
RACV Insurance policyholders can contact RACV on 13 72 28. If required, our team can transfer your call to specially trained consultants who can provide confidential assistance.
Victorians can also contact Safe Steps (1800 015 188) for free, confidential advice and support. The group is Victoria’s only 24/7 family and domestic violence response service and receives around 130,000 calls annually from Victorians seeking advice, support and assistance to flee family violence.
Suzanne Paynter, Group Director Business Growth at Safe Steps, says that it’s important shared account holders are aware that both parties can be alerted to changes about the other policyholder, including the change of personal information.
“This information can be weaponised in the context of family and domestic violence,” Paynter says.
“In Safe Steps’ experience of providing practical support, it can be difficult for a victim-survivor to separate accounts without alerting the person using violence or allowing them to get hold of identifying information. It can take considerable time and advocacy to contact multiple providers in order to remove a person using violence from access to digital accounts.”
If you need further help to separate yourself from shared accounts, including those outside of RACV, contact Safe Steps on 1800 015 188.
“We know family violence continues to impact thousands of Victorian adults and children. It remains a scary reality for so many in our community. We encourage anyone who is scared to go home, or to stay at home, to call us."
TThe information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
