19, July 2021

Who Should Be Covered Under Your Auto Insurance Policy?

Auto insurance premiums are computed depending on several factors, including the drivers that are listed in the insurance policy. In line with this, soon-to-be policyholders ask who should be listed in their auto insurance policy. You will need this as it dictates whether your premium will go up or down when compared to your estimates.

Who Should be Listed in the Auto Insurance Policy – The Basics?

Basically, it depends upon the insurance company. When you are unsure, the best thing to do is call your insurance company first. This is to ensure that the one who drives your car is listed so that he can still claim insurance in case they become responsible for an accident later on. Here is a list of people that should be listed in the auto insurance policy:

  • Licensed drivers within the household
  • Unrelated licensed drivers who are living with you, but do not have an existing policy
  • Those driving your vehicle regularly and does not have an insurance policy

Looking in this list, the general rule is to make sure that everyone living in your household must at least be known to the insurer, or must be listed. You must also inform the insurer about any existing insurance policy for that person. Insurers will ask about them just in case you forgot to inform them later when applying for an insurance.

Should Teenagers be Included?

Insurance companies do not require a teen driver with a permit to be listed in the policy but note that there are those who will require you to list them down. In case your teenager is newly licensed, you should include them in your insurance. This is because you are legally responsible for the teen driver. It is also part of your responsibility to report this to your insurer so that the young driver is properly covered in the policy. Include also a teen driver who does not live with you, and a minor who lives with you who has his or her own vehicle.

What are Special Conditions for Teenagers?

In case your teenager does not live with you, because you were divorced with your husband or your wife, then that will be a different scenario. In fact, it can complicate things when purchasing auto insurance policy. The rule in here is this, if your child stays with you regularly and has access to your cars, then he or she should be included in the insurance. This also applies even when your child lives with your partner. The presumption is that your licensed teenager will drive your car when he or she is with you.

Who Else Should be and Should Not Be Included?

Aside from the ones mentioned above, you must also include your parents who live with you and drives your car. The same is true for a caregiver who drives you wherever you go. If an adult who lives with you (including your parent) has his own vehicle, then he should not be included in the list.

Those who borrow your car occasionally are not eligible to claim insurance under your policy as well.