Adding a driver to insurance depends on a variety of factors. The cost of doing so also varies based on his or her driving history, type of vehicle, and other details. Here’s what you need to know about covering an additional person under your car insurance policy.
When to Add Someone to Auto Insurance
You must add a driver to your policy if he or she has access to your car, has a driver’s license, and lives at your residence. Common examples include teen and young adult children, live-in partners, and spouses. You might also need to add children who live away at college if they drive your vehicle when they return home, according to Cover.com.
According to Wallet Hub, you must add your children to your auto insurance as soon as they become new drivers. However, the timing varies by state. For example, Maryland, Indiana, and Illinois let insurance companies require standard coverage for drivers who have a learner’s permit, while other states do not let insurers start charging until your teen has a full license.
Someone who works for you and uses your car sometimes but does not live in your home may need to appear on your auto insurance policy. Common examples including home health care workers, housekeepers, and child care workers. Ask your insurer about its rules for these situations. In most cases, adding this person to your policy helps protect your financial interests. You can remove them in the future if their term of employment ends. This does not apply to a babysitter who works for you only once in a while, though.
Also check with your insurance company about adding individuals outside close friends and family who live with you (roommates or boarders, for example). You should also consider whether your roommate ever borrows your car. In this case, if he or she had an accident but was not listed on your policy, the insurer would not cover the damage, according to Value Penguin.
When to Leave Someone Off Your Auto Insurance Policy
Individuals who might drive your vehicle once in a while but do not live with you do not belong under your auto insurance coverage. Most companies have a “permissive user” clause, which means you can lend out your car occasionally to someone else and maintain coverage. This clause would apply to a guest or family member visiting from elsewhere, for example.
If you live with roommates who own vehicles and have their own auto coverage, these individuals do not need to be listed on your policy. This applies even if you occasionally trade cars for whatever reason.
If you share a vehicle with someone but do not live in the same home as that person, you may have trouble purchasing a joint auto insurance policy. Talk to an insurance agent if you find yourself in this situation.
If you plan to completely restrict someone’s access to your vehicle and he or she lives with you, you can have your insurance company list that person as an excluded driver. In this case, you may be able to avoid a rate increase because of living with someone who has a history of accidents, tickets, and claims.
How to Add Someone to Your Auto Insurance Policy
CarInsurance.com reports that most major auto insurance providers allow you to add another person to your policy either online, on the company app, or by calling your agent or provider directly. Gathering the following information about the additional driver can help streamline the process:
- Legal name
- Birth date
- Gender
- Occupation
- Social Security number
- Years of driving experience
- Driving history
- Vehicle make, model and year if applicable
Cost of Adding a Driver to Your Auto Insurance
You won’t always pay more to add another driver to your policy. In fact, Allstate reports that you can often save money on coverage if you add an older driver with a long history of safe operation.
WalletHub compared average insurance rates for a 2014 Hyundai Sonata when adding a 16-year-old, 30-year-old, and 50-year old to the policy depending on the driver’s age. The website found that a 30-year-old driver would pay an average of $817 for a six-month policy alone, $2001 with a teen driver, $924 for a driver of similar age, and $1003 for a 50-year-old driver. A 21-year-old driver would pay $1436 alone for six months, $2303 for a joint policy with a teen, $1309 for a joint policy with a 30-year-old, and $1268 for a 50-year-old addition. A 50-year-old policyholder paying an average of $850 would pay about $2259 for a policy with a teen driver, $954 when adding a 30-year-old driver, and $939 when adding a driver around the same age.
Keep in mind that these averages vary dramatically depending on the drivers in question. High-risk drivers can save by adding safe drivers, while safe drivers adding less-cautious motorists to their policies will pay more for coverage because of the higher associated risk. Most insurance companies consider teens high-risk drivers from the time they earn a license until they reach age 25. While young drivers can save by pairing with parents, parents will find their rates increase.
According to research from Wallet Hub, the average family pays about $225 extra a month on auto insurance when they have a teen driver. Even if you do not list your teen, the insurance company will find out that you have a driver at your address that does not have coverage by reviewing records from the state Department of Motor Vehicles. In this case, the insurer can discontinue your policy or charge back premiums since your teen’s license date.
If your child has an accident without insurance coverage, you will shoulder full responsibility for the costs if he or she is younger than 18. If you do not want your premiums to go up, consider having your teen buy his or her own auto policy.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
https://cover.com/blog/adding-a-driver-to-car-insurance/
https://www.caranddriver.com/car-insurance/
https://www.valuepenguin.com/add-driver-to-car-insurance
https://www.carinsurance.com/adding-driver-cost.aspx
https://www.allstate.com/tr/car-insurance/add-driver-to-car-insurance.aspx
https://www.caranddriver.com/hyundai/sonata/specs/2014/hyundai_sonata_hyundai-sonata_2014
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