P.J. Miller - Vice President
Your auto insurance coverage is determined, in part, by the drivers listed on your policy, and having the right drivers listed ensures you won’t be liable if they get into a car accident. But who exactly should be listed and how will it impact your premium? Certainly anyone who drives your car regularly should be on the policy, but what about a teenager with a learner’s permit, a parent living with you, or a friend who borrows your car from time to time?
Below, we interview Vice President P.J. Miller about best practices for listing drivers on your auto insurance policy.
Why is it important to know exactly who is listed on your car insurance policy and to have the proper drivers listed/covered?
The carrier might only cover listed drivers in the auto insurance policy.
The driver might not qualify to be on the policy and therefore, they might be excluded from being able to drive.
The driver might not have the authority to permit others to drive his car but will do so anyway, thereby jeopardizing the coverage.
Maybe the driver isn’t licensed, permanently or temporarily.
In the event of an accident or violation, is the driver listed on the I.D. Card? Law enforcement will typically cite a driver and the owner of the vehicle if the correct I.D. card isn’t supplied at the scene.
What drivers should be added to your car insurance policy (e.g., any drivers in the same household like a teenage daughter or person living with you who borrows your car)?
Residents of the household who are of driving age and regular drivers of any vehicle should be listed on your policy.
What happens if you fail to list a driver on your policy? What are the ramifications/risks?
The auto insurance policy might restrict other drivers from driving unless added to the policy or only when the owner of the vehicle or the “Named Insured” (policyholder) gives permission. The risks include not having coverage for damage to the car or the claim that ensues, be it property damage or injuries to claimants.
Do all drivers who live in the same household have to be insured? Is it best that they be insured by the same carrier/same policy?
All drivers should be listed in the policy and all drivers and vehicle owners should also be listed and/or insured.
Explain best practices here.
It is best to have the same carriers (insurance companies) cover all vehicles in the household and have the same limits of coverage to avoid having gaps or differences in coverage.
Can your carrier add a driver to your policy without your permission?
Technically no, your carrier cannot add a driver without your permission unless the new driver also happens to be a new Named Insured, such as a spouse.
Can you provide an example of when this may occur? Does this ever happen—if so when?
Upon marriage would be the best example.
What are your rights in this situation?
The primary policyholder has the right to dictate who may be added to the policy.
Does adding a driver to your insurance policy automatically mean they are covered/insured?
No, not necessarily. Let’s say the policy does not provide any physical damage coverage to any vehicle on the policy and then the new driver wants to add their vehicle to the policy and their vehicle needs to have physical coverage on it (comprehensive and collision) due to a lender being involved. The added vehicle does not automatically receive physical coverage without first being added to the policy with the added coverages and a premium is paid.
Any other thoughts or suggestions on this topic?
Don’t let anyone drive your vehicle! Or, make sure they have their own coverage, at a minimum. I see too many situations where a claim occurs and it becomes complicated, or unfortunately, not covered because someone else was driving your vehicle and not on your policy.