If I want to add a driver or vehicle to my insurance, do I need to start a new policy?

Many drivers are concerned about the idea of someone borrowing their car. If the driver gets in an accident, will they be covered by the insurance policy on the vehicle?

Adding someone to car insurance temporarily or permanently can increase your rates. However, anyone that drives your car regularly should be added to your insurance policy. If they aren’t and they’re involved in an accident, your claim might be denied.

Read on to learn how to add a driver or vehicle to your insurance and what the consequences might be. Then, compare prices with other companies to ensure you’re still getting a fair deal for your insurance.

Do you need to start a new policy when adding a new driver or vehicle?

Car insurance policies are generally easy to change. You do not need to start a new policy if you’re adding a new driver or car. Instead, you can simply call your agent and request the changes.

Not only can you add a driver or vehicle with ease, but you might also earn a discount on your insurance. For example, many insurance companies offer a multi-car discount if your policy has more than one car.

Car insurance companies want you to add drivers to your policy if they’ll be using your car frequently. Any driver that uses your vehicle more than once or twice increases the risk that your car will be involved in an incident. Car insurance companies increase prices in this situation to protect themselves financially.

When should you add a driver to your policy?

Generally speaking, if you’re on the fence about putting a new driver on your insurance, add them. You should add a driver to your insurance policy when they live with you, have a driver’s license, and regularly use your car. However, all insurance companies have different rules regarding who should be on your policy.

If you have questions about adding an additional driver to your policy, you can always ask your insurance agent.

It’s important to check with your agent if you’re wondering if you should add a driver. While your policy will cover someone who uses your car once or twice, a claim might be denied if your company learns someone was regularly driving your vehicle.

People who are commonly added to another person’s policy include:

• Spouses
• Children
• Roommates
• Siblings
• Other people who live in the same house

Occasionally, insurance companies require you to add a driver who uses your car even if they don’t live with you. The important thing to do is check with your insurance provider. The last thing you want is for a claim to be denied because you didn’t understand who should be on your policy.

Are there times when it’s OK not to add a driver?

Typically, you don’t need to add someone to your policy if they don’t live with you and rarely use your car.

For example, if your brother’s car is in the shop and he needs to get to an interview, you can lend him your car without having to add him to your insurance.

Most car insurance policies include something called a permissive use clause. This clause allows someone to use your car occasionally and still be covered by your insurance if they are in an accident.

Of course, if you’re unsure about what your insurance covers, speak with your agent. Some companies offer reduced coverage or liability-only for unlisted drivers. You should fully understand what your policy covers before you agree to lend your vehicle to someone else.

Another type of driver you can exclude from your policy is people that live with you but are not related and have their own policies.

Are there times when it’s a bad idea to add a driver?

You’ll typically want to add anyone that lives with you and frequently uses your car to your insurance policy. However, there are times when you shouldn’t add someone to your policy.

Adding someone to your car insurance might increase your rates. Certain drivers can double or even triple your rates. Drivers with at-fault accidents, DUIs, speeding tickets, or other marks against their driving record might be better to keep off your policy.

If someone with a bad driving record lives with you, you can tell your insurance company that they never drive your vehicle and mark them as an excluded driver.

What should you do if you share a car with someone who has a terrible driving record? If your finances are separated (i.e., you and a roommate), ask the other driver to open a non-owners policy. That way, you can avoid high insurance rates, and the other driver will be covered while driving.

Does adding a driver increase your insurance rates?

Adding a driver to your insurance policy almost always increases your insurance rates, but it depends on the driver that you want to add.

If the driver has a clean record and your insurance company doesn’t consider them a risk, you may not see a change in your rates at all.

However, if your company considers the new driver a risk, your rates will increase. While every company is different, most consider the following drivers as higher risk:

• Teens and other inexperienced drivers
• People with low credit scores
• Drivers with DUIs, tickets, or other incidents
• People who have made several insurance claims

On the other hand, you might see your insurance rates lower. This can happen when the insurance company considers you a higher risk and you add a driver with a clean record to your policy.

How much does adding a teen driver increase rates?

Teen drivers are some of the most expensive people to insure because they are inexperienced and more likely to engage in risky behavior. In fact, traffic accidents are the number one reason people ages 16 to 19 lose their lives.

If you have a new teen driver in your household, they should be added to your policy. Teens can open their own insurance policy with a guardian’s help, but rates can be prohibitively expensive. Consider the following average car insurance rates by age if you’re trying to decide about adding a driver.

As you can see, adding a teen to your insurance policy can save them hundreds of dollars.

Does insurance follow the car or the driver?

A common question drivers have before they lend their car out is, “Does my car insurance cover other drivers?” The answer is typically yes. When you buy a policy for a car, the insurance stays with the vehicle.

That means that your insurance will cover a driver that uses your car once or twice if they get in an accident.

However, your insurance won’t cover you if you borrow someone else’s car. You’ll have to rely on the owner’s insurance policy if you get in an accident in their vehicle.

Find the Best Insurance Rates After Adding a New Driver

When you add a new driver to your insurance, you might not be able to avoid a price increase. However, there’s usually no consequence to canceling your car insurance. If your rates increase by too tremendous an amount, you can always find a new insurance plan.

Now that you know you can add a driver or vehicle to your insurance, your next step is to decide if your current insurance is worth the price. You can compare rates with other companies to see what they can offer you.

References:

https://www.cdc.gov/transportationsafety/teen_drivers/teendrivers_factsheet.html