Car insurance pays for damage that you cause with your vehicle to other individual’s property. It can also pay for damage your own vehicle sustains as a result of an accident. In most cases, coverage follows the vehicle rather than the driver; this means that every vehicle in your household requires its own auto policy. It also means that most accidents will be covered regardless of who drives your vehicle.
For most car insurance companies, anyone who has access to your vehicle is considered to have permission to drive it. This means that if a friend, relative or roommate drives your car and gets into an accident, it will usually be covered by the insurance whether or not that driver is listed on your policy. This also means that your rates are based on the claims filed against your insurance, regardless of who is driving it. If someone else drives your vehicle and causes an accident, that accident will count against your premiums in the future. This is important to remember as it may dictate who you will allow to drive your vehicle.
Not all car insurance companies function this way. Some auto insurance companies will only cover an accident if the driver is specifically listed on the insurance policy. Before allowing anyone to drive your vehicle, it’s important to know what type of policy you have and how your insurance handles unlisted drivers. If your company will only handle damage caused by a named insured, you must either add any occasional drivers to your policy or forbid others from driving your vehicle.
Some states also have specific restrictions about who can be included on an auto policy. For many places, having access to a vehicle is enough to allow a person to be listed on the policy. Other states may have more stringent requirements.
Listed Drivers
If you do decide to allow your roommate to drive your vehicle frequently, you should consider adding that individual to your policy. Generally, you can add anyone in your household as a driver; even people who have regular access to your vehicle but do not live with you can be added to the policy. This means that you can add relatives who visit frequently or even your nanny if she drives your car.
The primary reason to add your roommate to your auto policy is to be honest with your car insurance company. When you insure a vehicle, you will be asked if anyone else drives your car. If your car insurance company determines that your vehicle is being used frequently by individuals not listed on your policy, they may see this as a breach of your insurance contract and might even drop your policy.
It’s also important to maintain at least one other person on your auto insurance policy at all times so that you are covered in the event of an emergency. For example, if you are involved in an accident and become hospitalized, you may want for someone else to handle your claim for you while you are in the hospital. Unless another person is listed on the policy, this is not an option.
Excluded Drivers
Alternatively, you may decide to exclude your roommate from your insurance policy. Since car insurance companies usually assume that anyone in a household has access to a vehicle, they will usually base your rates on the driving habits of everyone in a home. This means that your roommate’s DUI conviction can cause your rates to increase, even if he doesn’t drive your vehicle.
In order to avoid this situation, you can exclude your roommate or any other individual from your policy. Excluded drivers are not allowed to drive your vehicle, and their driving history will not affect your policy. Of course, accidents caused by excluded drivers are not covered by insurance. If you have excluded an individual from your policy, you should be sure that they never drive your vehicle. Not only will any claims be denied, your car insurance company may cancel your policy.
Whether you decide to add your roommate to the policy or exclude him from using your vehicle at all, you should be sure you understand the way your policy works. By learning how your coverage extends to others who are able to drive your vehicle, you can make the best choice for your lifestyle. You can call your insurance company to discuss your options or speak with your agent to make changes to your policy.
