Who drives your car, and does your insurer know?
Posted in: Auto Insurance
The definition of “insured” on your auto policy is straightforward and easy to understand. The typical auto insurance policy allows all licensed drivers to be covered for driving your car, if they are doing so with a reasonable expectation that they have your permission, unless they are specifically named as an excluded driver on your policy.
However, people don’t always live in the typical, nuclear-family scenario. What about a household that includes several adult roommates, elderly relatives, or driving-age stepchildren living in the home part-time?
The tendency of some is to remain mute on the subject to avoid higher premiums. Besides, if you’re covered, why report it?
It’s best to report all those who live with you, and/or drive your car on a frequent basis, so the insurance company can’t accuse you of misrepresentation. Premiums aren’t based on who lives with you; they depend on who drives your car regularly, their driving record, and whether they have their own insured vehicle. Visiting stepchildren are often rated differently, depending on the company and the situation.
Read your policy carefully, and talk to your agent if you have doubts about the coverage for borrowing or lending a vehicle.
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