Who Should Be Covered Under My Car Insurance Policy??

Who Should Be Covered Under My Car Insurance Policy?

When you purchase an auto insurance policy, you have the option to add other drivers to your policy. This isn’t a decision to take lightly, however, as listing other individuals on your policy can have an effect on your car insurance rates. 

Adding another driver to your policy means that the other driver will have guaranteed coverage while operating your insured vehicle. It also means that the factors influencing your rates will also be accounted for from the other driver. 

Say you add your teenage driver to your car insurance policy. While this may be the best option until they can purchase an insurance policy on their own, you should be prepared for your premiums to rise significantly. This is because teenagers tend to pay the highest rates for auto insurance due to the likelihood of being involved in an accident. Age, gender, driving record and credit score from all drivers on the policy will influence your rates. 

On the other hand, adding someone with a better driving record or credit score can actually save you money or make it easier to find a policy. 

Who Can Be Included on a Car Insurance Policy? 

In general, you may only add family members who live in the same household as you. You may be able to add an unmarried partner to your policy, as well, as long as you live in the same household. 

Aside from previous factors influencing your rates, also keep in mind that any accidents the other driver may be involved in on your policy will reflect back on you. A bad at fault wreck or DUI can cause your rates to skyrocket, so be careful who you place on your car insurance policy. 

The exclusion to this is excluded drivers. Excluded drivers are those in your household who are considered “high risk” by an insurer due to a poor driving record, low credit score or other factor. In some cases, an insurer may add a requirement onto your policy that the excluded driver is not allowed to operate the vehicle. If the excluded driver is given permission to operate the vehicle, they will not be covered in case of an accident. 

Does Someone Have to Be on Your Policy to Be Covered? 

There is always the option to not list anyone on your policy if necessary. In general, other individuals should be covered while operating your vehicle under your permission as long as you have the appropriate coverage.