Does My Car Insurance Cover Other Drivers?
If you’ve ever lent out your car, you understand the fear that comes with being generous. Car repairs are expensive. So when you put your car key in someone else’s hands, you want to make sure your insurance has your back. You need to start with your insurance agent. Ask him or her, “Does my car insurance cover other drivers?” The answer may surprise you. Keep reading to learn all you need to know about why your insurance may or may not cover other drivers.
Who Can Drive the Car and Be Insured?When you buy a car, you need to go car insurance policy shopping. As you shop, ask lots of questions, including, does my car insurance cover other drivers? Then take a few steps to make sure your insurance covers who you want it to and that it excludes those that you don’t want on the policy.
List Your DriversList all of the drivers in your household; know if your insurance covers drivers that aren’t listed; you can always take a risk in lending out your car, but you run the risk that your car will not be covered; nor will the driver; The best auto insurance will cover you regardless of who is driving the car. if you have a teen driver, you should check your policy. Some policies exclude teen drivers or drivers with permits. You may need to list them exclusively. Beware, your car insurance will go up. Even the best car insurance understand the liability of putting an inexperienced driver behind the wheel of a car.
Ask About DiscountsIf you want to add a teen driver to your list of drivers but worry about the cost, ask about discounts. Some companies will offer up to a 15 percent discount when you add a teenager to your policy if you fulfill specific requirements.s If you’re teaching your teen to drive, some insurance companies will offer programs so you can learn how to teach your teen. Programs like this offer parents and teens webisodes that teach teens to drive safely along with an agreement that both a parent and teen can sign. This agreement basically states the teen will drive safely. Grades matter as well. Some insurance companies believe good grades reflect responsible teenagers. So even something as low as a B average on a report card could earn discounts for teen drivers. Nationwide Some insurance companies will offer actual online courses for parents and teens to take together. Parents and teens who take the class together can earn discounts on insurance. Your car insurance will gladly cover your teen driver when you list them, and they could even offer you discounts for having a safe teen driver. When you prove that you’re a safe risk, companies reward you. A good insurance company will help you local multiple discounts on different policies.
Excluding DriversYou can exclude a driver as well. If you have someone that you prefer not to drive your car, then you can list that person and documents that exclude them from coverage. For example, once your teen leaves the house, you may want to list them as an excluded driver. This way your insurance rates go down, and you have an affordable payment once again. Beware, when you sign the documents that exclude a particular driver, that driver cannot legally drive your vehicle again. Allowing an excluded person to drive your vehicle will carry the same penalty as if the driver was driving an uninsured car. You put yourself at great risk allowing the excluded party to drive your vehicle. Make sure that the individual you exclude from your policy will never drive your vehicle if you write them off the policy. If an excluded person drives your car and crashes, you alone will be responsible for all of the damage.
Citations From Another DriverIf you lend your car out to another driver, even one listed on your insurance, the driver can cause your insurance to go up. If the driver of your car receives a speeding ticket or any kind of citation, your car insurance can go up. Lending your car out to an irresponsible driver reflects poorly on you. That driver puts your vehicle at risk, and this makes insurance companies wary. It makes you more of a risk. So make sure when you lend out your car, the driver is responsible.
The Criteria for Approved DriversSome insurance companies automatically cover the driver of your vehicle. Many people believe the myth that insurance follows a driver. This simply isn’t true, at least on a typical policy. Most often the insurance follows the car, not the driver. But the driver does need to fit specific criteria.
- The driver must have your permission to drive your vehicle. So if you have a friend, a family member, a co-worker, a neighbor, or just about anyone the permission to drive your vehicle, your insurance may automatically cover them. They just need your permission.
- The driver does not have to be a member of your own household. You have already listed those household members, so they’re automatically covered because you listed them. This driver is not listed.
- The driver needs to have his own car insurance and be in good standing with his insurance company.