Can You Add Anyone to Your Car Insurance Policy
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| Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo... Full Bio → | Reviewed by Joel Ohman |
UPDATED: Sep 13, 2021
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Here's what you need to know...
- When deciding to add someone to your car insurance, there are several things to take into consideration
- The person you decide to add may also influence your policy terms or your policy's rate depending on multiple factors
- The individual's driving record, insurance history, and history of claims will all be looked at during the addition process
- It's important to take the person's age, living situation, and frequency of vehicle use into consideration before you decide to make a change
When you choose to add an individual to your car insurance policy, it's important to look at things objectively before making your decision.
Licensed drivers living in your household and driving your car on a regular basis should be added to your policy. Read over your auto insurance contract carefully before letting anyone drive your car that hasn't been added to your policy.
There are different situations that may require adding another person onto your policy; remember that their history and previous choices can influence your policy.
Take the person's age, living situation, vehicle use, and past choices into consideration before adding them to your policy.
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What is this person's age?
When adding someone to your auto insurance policy, their age can be a simple factor that can affect your policy in several ways.
Age is one factor that insurance providers take into consideration to determine policy premiums and coverage options.
Younger drivers are often at a higher risk of being involved in an accident due to a lack of experience and skill.
Insurance premium rates tend to be higher for drivers in their teens and start to lower as they get older.
Additionally, your auto insurance company may suggest or recommend higher levels of insurance coverage if you add a younger or inexperienced driver to your policy.
If you only carry liability coverage, it might be a good idea to sign up for collision and comprehensive coverage when you add your teen to your policy.
You might also consider adding optional insurance coverages like personal injury protection and uninsured/underinsured motorist coverage.
The additional coverage may increase your premiums more than you were anticipating.
However, it is still cheaper to add your teen driver to your existing policy rather than purchasing a separate policy for them.
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Where does this person live?
Another factor that your provider will look at is where this individual currently lives. If this individual lives in your home, then you may be required to add them to your insurance policy because they assume that person may use your vehicle at least occasionally.
This reasonable assumption means your provider will take them into consideration when reviewing your auto policy and calculating your premiums.
This is just one example of when your provider may require you to add someone else to your car insurance policy.
If you are deciding to add someone of your accord, they will still take the living situation into consideration when reviewing your policy.
If someone is living in your home and they are not added to your policy, this could be a violation of your policy conditions.
During your policy application process, your provider receives a variety of details about you and your household. You should make sure that you are upfront with your provider during this portion of the process.
If a claim situation arises from a non-listed driver, your provider may review the information provided. If they find that this individual should have been listed previously, there could be a denial of coverage.
If a non-listed driver is involved in an accident, and it's discovered that they should have been listed on your policy, your provider may not be willing to cover your claim.
Your insurance provider may also consider this a form of insurance fraud, meaning that there could be serious consequences for you.
How often is this person using your car?
The frequency an individual is using your car is something your provider will take into consideration when adding them to your policy.
If the person you are adding has their vehicle and their insurance policy, your insurance provider may look at this more favorably.
A driver that already has their vehicle and insurance policy may be a lower risk to them.
If this individual uses your vehicle frequently without being a member of your household, your provider may still request that you add them to your policy.
During the auto claim process, the primary insurance listed for the vehicle is normally covering the loss.
This means that drivers that are frequently using your car may need to be added to your policy for coverage to apply.
Does this person have a good driving record and insurance history?
A big piece of information that any provider will look at is the driving record of any potential driver. This means that their previous record of moving violations, traffic citations, or other vehicle-related incidents will be reviewed and taken into consideration.
If the person you're looking to add has a bad driving record, your provider may increase your policy premium to prepare for any future loss. If they have an exceptionally poor driving record, your insurer may be unwilling to provide auto insurance coverage at all.
Another big thing that will be reviewed is this person's previous insurance history.
This can include their previous relationships with insurance carriers and their filed claims.
If this person has filed several claims within a given length of time, your provider may consider them a high-risk driver. This could lead to higher premiums or an inability to provide coverage.
This person's previous policies may have an impact as well. While reviewing their insurance history, your provider will potentially look at how well they maintained their previous policies.
A poor history of previous relationships with other carriers could be a red flag that this driver is a higher risk than they want to accept.
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What are the deciding factors?
Any time you decide to add someone to your car insurance policy it's important to look at your situation objectively to determine the best course of action.
Your insurance provider will often have requirements for additional drivers; some requirements may seem too strict and some may be more lenient.
It's important to remember that there are a number of factors that will be looked at before your provider signs off on this added driver.
Before you decide to add someone new, speak to them about the risk that adding them introduces to your policy. Also, find out more about their previous driving record, their insurance history, and any claims they've filed.
If you still have questions about the ways adding someone new can alter or affect your policy, speak to a representative from your auto insurer first.
They may be able to look at the information you can provide to determine if this additional driver is in your best interest.
You may also be able to find a better deal elsewhere. Use a comparison quote tool like the one below to get an auto insurance quote from multiple companies at once and see which can offer you the lowest rate.
Also, make sure you're taking advantage of any auto insurance discounts that you're eligible for. Most insurers offer safe driver discounts, multi-car discounts, multi-policy discounts, and more.
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Can You Add Anyone to Your Car Insurance Policy
Source: https://www.carinsurancecomparison.com/can-you-add-anyone-to-your-auto-insurance/
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