If you have multiple people in your household, you may consider adding them to your car insurance policy—especially if you share a vehicle. But there are some rules and exceptions that all drivers should be aware of when adding other names to their policy.
Changes to Your Insurance Premiums
Be prepared to see a spike in your car insurance premiums after adding another name to your car insurance policy. This is because the insurer will look not only at your driving record, but also the driving record of this new insured driver. If you add someone with a poor driving record to your car insurance policy, you will likely see a jump in your car insurance premiums. Splitting the cost or sharing a policy can sometimes be cheaper than that driver getting insurance on their own, however, so be sure to consider the pros and cons.
This is especially true for teen drivers. If your teenager is just learning to drive and gets put on your policy, your premiums will rise by a significant amount. Teenagers pay the most for car insurance out of any other age group since they are new to driving and more likely to get into accidents.
Family vs. Friends
While it is not common, it is possible to add friends or roommates to your auto insurance policy only if they live in the same household as you. For example, if your long-term roommate shares your vehicle to commute to work, you may be able to add them to your car insurance policy to ensure they are covered in case of an accident.
Family members are not automatically listed on your policy, either. The family member you wish to add to your car insurance policy must live in the same household.
Excluded Drivers
In rare cases, insurers will restrict drivers from adding others onto their insurance policy. This occurs when the policyholder lives in the same household as a “high-risk” driver. High risk drivers are those who have poor driving records or low credit scores and are thus high risk to insure. An insurer may offer you a car insurance policy with the mandate that you cannot allow the high-risk driver to operate your vehicle. These are called excluded drivers and will not be covered under your car insurance policy if you allow them to operate your vehicle.
If you need help with choosing the right car insurance policy for you, give our team of dedicated agents a call at (763) 746-2242 or fill out a online quote from today!