When you buy car insurance, it basically covers the car you list on your policy; however, your car insurance is also based on those who drive your car. If you are the only person driving it, then you will likely be the only person listed as a driver for this car on the policy. If you ever decide to let someone else drive your car, it is important to understand that there might be some risks with this. Here are several things to know if you decide to let someone else drive your car.
The person must be listed if he or she lives with you
When you purchase a policy, the insurance company will likely ask you to list everyone in your household on the policy that lives there and is old enough to drive. By listing every name, the company can make sure they account for all the risks of the household for the car they are insuring. Anyone who lives in your home and is listed on the policy will definitely be covered if an accident arises that these individuals cause. Adding all names will help you feel safer with your policy, as you will know that the car is covered if anyone who lives with you drives the car.
Allowing an excluded driver to drive could be highly risky
Another thing to understand about this is that you should never allow an excluded driver to drive your car. An excluded driver is a person named on the policy that is not covered with insurance while driving your car. An excluded driver is typically a person who lives with you and that has a very high risk of filing a claim. If you are not sure if you have any excluded drivers on your policy, read it over or ask your agent. If you allow this and the person causes an accident, your policy would not cover it.
There are fewer risks if the driver has his or her own insurance
If you ever decide to loan your car to a friend or anyone that does not live with you, your policy would likely cover a claim, but it is always better to make sure that the person you loan the car to has insurance of his or her own, as this would protect you the most.
As you decide whether or not to let someone drive your car, keep these things in mind. If you have questions about your auto insurance coverage, or if you want to change your policy, contact a business like Germain Insurance Agency today.