When to Include Others in Your Insurance Plan

People come in and out of our lives, from roommates to significant others to couch-surfing friends. When someone moves in for any length of time, it’s important to find out how this will affect your auto insurance. You may need to add the person to your plan – and you definitely want to make sure any potential drivers are properly covered before handing over your keys.

No one wants to think an accident could happen to them or anyone else driving their vehicle. But insurance exists to protect you in case of an unexpected event. After all, there’s no point in paying into a plan if your bodily injury or property damage coverage doesn’t kick in when it matters. The last thing you want is to discover your insurance won’t cover the cost of damages from an accident because the person behind the wheel wasn’t on your policy.

How to Add a Driver to Your Plan

Adding someone to your car insurance policy is a simple process. Simply contact your insurer and provide them with basic information about the driver you’d like to add. The same goes for removing someone from an insurance plan – such as an adult child who moves away and no longer uses the car. The more complicated question for some households, though, is who needs to be on their plan and who doesn’t.

Auto Insurance: Who Should Be Covered?

One of the first things you want to find out when purchasing auto insurance is who will be covered automatically by your plan. An auto insurance policy should typically cover you, your spouse or partner, and family members of driving age who live with you. If there’s a chance a household member will use your car, you’ll want your full coverage to kick in if something happens when they’re driving.

This may mean adding a new name if someone moves in. If your brother moves into your spare room indefinitely, don’t put off letting your insurance company know. You can usually do so online through the insurer’s website. But adding him to your plan may not be necessary if he’s a driver with his own coverage. When in doubt, double check with your insurer so you’re sure all the bases are covered.

Talk to Your Insurance Company

Different insurance companies have different rules. Some auto insurance providers require policyholders to add any licensed drivers in their household to their auto insurance policy – even if that person is a roommate with his or her own car. And about that brother moving in, some companies offer a grace period before his name needs to officially be on your plan. You may also want to find out which aspects of your coverage will extend to licensed drivers outside your household who you let drive your car.

Ask About “Permissive Use” Coverage

Under many plans, “permissive use “means that someone borrowing your car will be covered the same way as you are. Generally, if a friend or neighbor borrows your car on occasion, that person doesn’t need to be added to the policy. In many cases, they will automatically be covered. But there could be limitations. If you’re not paying for collision coverage, damage to your car wouldn’t be covered no matter who was driving.

The bottom line is it’s best not to make assumptions when it comes to the nitty-gritty of insurance coverage. When your insurer sends you a copy of the plan, be sure to review it closely and make sure you understand who’s automatically covered and who isn’t. If you have a question about potential scenarios depending on who’s driving, just pick up the phone and ask.

What’s the Cost of Adding Another Driver?

Answers to this question will vary depending on a number of factors. Adding someone may cost nothing at all, but it’s more likely to drive up your annual premium.

As a general rule of thumb: The riskier the driver, the more it is going to cost you to add the person to your policy. The most common reason that families add a name is when someone gets their driver’s license. That’s why it’s important to talk to someone at your insurance company and ask questions. Particularly when adding an inexperienced or teenage driver to your plan, find out how much the new person will cause your premium to goes up.

To get any of your questions answered about who should be included on your insurance policy, just head over to Amigo Insurance. Figuring out the ins and outs of car insurance can be challenging, but with Amigo Insurance, we’ll help you every step of the way. Contact us today or chat with us online!

When to Include Others in Your Insurance Plan
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