Who is Insured to Drive My Car?
More insurance Q&A: “Who is insured to drive my car?”
A typical auto insurance policy will cover more people than you may think, but there are a few key definitions you need to be clear on regarding who has coverage while driving your car.
First, and most obvious, is the “named insured.” This is the individual, corporation, partnership, or other entity listed on the declarations page of your insurance policy.
Unless otherwise specified on the policy, a spouse is entitled to all coverage provided. However, this is not the case with a restricted or limited auto insurance policy, which provides coverage to one specific person only.
Additionally, there may be some stipulations regarding separated couples not living in the same home. In some cases, this person or entity has more rights than others with regard to coverage. Review your specific policy for such provisions.
There are also insured parties who are identified by their relationship to the named insured. Family members listed on your policy are included as insured on a policy based on certain restrictions. They must be above 15 years of age and residing in the household. This includes family members who are temporarily not living at home, like college students.
Keep in mind that if a family member has regular permissive use to drive your car, they need to be listed on your policy. This helps the insurance company charge the appropriate amount of money for their exposure to paying claims.
For example, if there are five people regularly using a car, the insurance company will charge more than if only one person uses the car.
Individuals you allow to drive your car are also covered under your insurance policy. If you give your friend permission to drive your car to the store, they are covered, though your policy is secondary coverage to any policy they have for themselves.
Basically, if they already have car insurance, their insurance limits will need to be exhausted from a claim before your insurance company has to step in and pay for anything.
On a commercial insurance policy, you may have the ability to add additional insureds, such as if you enlist the services of someone for your company who is not a regular employee.
Exactly who is insured under your policy can be tricky to determine. Make sure you contact your insurance company or independent insurance agent if you are unsure about your policy language, or unclear whether a certain individual can drive you car. After all, it’s better to be safe than sorry.
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