You may be wondering who should be named on your policy when you purchase auto insurance or when you evaluate your current coverage.
Making this choice is about more than just following the law; it’s also about safeguarding your finances. Insurance companies evaluate the risk of covering your home and set your annual rate using this information and other considerations.
The correct drivers must be named on your insurance so that you won’t be responsible for any covered incidents or claims.
But deciding who to include on the list might be difficult. This article explains which people need to be on your auto policy to ensure that your household is adequately insured when you drive.
Do All Household Members Need to Be Listed on Your Auto Policy?
In most cases, insurers ask that all household members who are licensed drivers be listed on your auto policy, even if they don’t regularly drive your car. This includes household members who have their insurance policy or only occasionally use your vehicle.
Rates and premiums are set by insurers based on a variety of variables, including driving history, geographic region, mileage, and automobile make and model.
It is not required for the policyholder to be the primary driver of the insured car. The primary driver is the one who operates the car most of the time.
Your spouse, partner, or significant other, roommates, driver’s license-holding children, and other family members who reside with you, including parents, uncles/aunts, or cousins, can all be listed as household members on your auto policy.
Your prices won’t be impacted by every member named on your policy. Members can be categorized according to their driving status by working with your insurance agent on this.
What is the Difference Between Rated and Listed Drivers on an Auto Policy?
There’s a difference between rated and listed drivers on your policy.
Rated drivers are household members who will affect your insurance premium. Their driving records are considered when calculating the cost of your policy.
On the other hand, listed drivers are noted on the policy but do not affect the premium. This distinction allows you to include all potential drivers without unnecessarily increasing your insurance costs. It’s important to know this difference so you can have a well-managed policy that reflects actual usage without overpaying.
Do I Need to List Non-Drivers on My Auto Insurance Policy?
Household members may be categorized as “non-drivers” under your policy if they do not currently possess a driver’s license, do not intend to obtain one, or do not intend to drive in the future. This is helpful for family members—like the elderly or people with disabilities—who cannot or will not drive.
By classifying them as non-drivers, you ensure that your policy accurately reflects the situation at home without adding unnecessary individuals who don’t impact your insurance costs or risk assessment.
Do Household Members Need to Be Listed if They Already Have Auto Insurance?
Your policy may list licensed drivers under the “other insurance” category if they are covered by their auto insurance. To make sure every member of the household is covered, some insurers could request documentation of their other insurance. Even listed drivers with their policy may have an effect on the price based on their driving history, depending on the provider.
It’s always a good idea to communicate with your insurer about any licensed drivers in your home to ensure all aspects of coverage are aligned and you’re not missing any important details.
Do People Not Living in My Household Need to Be Listed on My Auto Insurance Policy?
If someone in your household has moved out or lives elsewhere but regularly uses your vehicle, they need to be listed on your auto policy. Here are some common instances:
Caregivers or Nannies:
If your family or nanny uses your car for caregiving or doing errands and they don’t have their insurance, they must be added to your coverage.
Nannies or caregivers who live elsewhere but use the household’s vehicles regularly should be included in your policy. It’s important to ensure they have adequate coverage to protect both parties in case of an accident.
Children Away at College:
If your child is away at college, you might consider excluding them from your policy to save money. However, it’s often safer and more practical to keep them insured while they’re away. Besides providing coverage if they visit home or drive to school, keeping your child on your policy can make you eligible for discounts! Make sure to consider all scenarios before making a decision.
What is an Excluded Driver?
Excluded drivers are those who are explicitly excluded from coverage on your policy. If they are in an accident while using your vehicle, they won’t be covered, so make sure they don’t drive your car. You might exclude household members who won’t drive anymore or those with violations affecting your premium.
Excluding a driver can be done easily by reviewing your listed drivers with your insurance agent and making any desired exclusions. This can help lower premiums and protect your coverage.
What Happens if an Excluded Driver Gets Into a Car Accident?
Your auto insurance may not pay for damages if an excluded driver uses your car and is involved in an accident. If you allow an excluded driver to operate a car, some insurers may take action against you, such as declining to renew your coverage.
If the excluded driver operated your vehicle without permission, you might have to prove they stole it to receive coverage. Therefore, it’s crucial to ensure that excluded drivers do not access your car to prevent any issues.
Auto Coverage for the Whole Family
Who you list on your auto policy is crucial for ensuring your insurance meets your needs. When children get driver’s licenses, family members move out or driving information changes, update your insurance agent to ensure your household is properly covered.
A well-maintained auto insurance policy can save you money and trouble in the long run, providing peace of mind for you and your family. By keeping your policy up to date and inclusive of all relevant drivers, you ensure that everyone in your household is protected and that you’re compliant with your insurer’s requirements.
