Understanding Multi-Driver Car Insurance Policies

Car insurance is pretty confusing, and if you aren’t an insurance expert yourself, there’s a good chance that you don’t know as much about your policies as you should. Here are some of the most common questions that go along with auto insurance and covering multiple people on the same policy. The answers to these questions should help you understand how your insurance works a bit better, and hopefully to help you avoid making common mistakes that others make.

Is There a Limit to the Number of Drivers I Can Carry on My Policy?

Under some insurance policies, there is a limit to the number of drivers that can use a particular vehicle. This depends on your insurance company, though, so that’s something that you’ll have to ask about specifically. It’s possible that you’ll have to exclude different vehicles under a different policy, or that you’ll have to purchase additional coverage for several people are using the same vehicle.

Does Everyone in My Household Need to Be on My Insurance?

Yes, most of the time it’s required that you list everyone that can drive on your insurance policy if they live with you all the time. That’s to make sure they are all properly covered in the event of an accident. In other cases, you may wish to exclude certain drivers from certain vehicles covered by the policy. Exclusion is not an option offered by every insurance provider so be sure to contact them to confirm the possibility.

Understanding the rules of exclusion can save you money if one of the drivers has a driving record that would inflate the cost of coverage. For example, you may want to exclude a teen driver from driving the most expensive car in the household fleet. Make sure that the exclusion is noted, and also make sure that you do not allow the driver to use your vehicle under any circumstances. If the excluded driver gets into an accident in your vehicle, you will be liable for all the damages and will have to cover the costs yourself.

Do I Need to Add Friends that Drive My Vehicle?

No, in most instances you do not have to worry about adding your friends to your car insurance policy. When one of them drives your vehicle and gets into an accident, they will be covered by the policy. It’s attached to your vehicle, not to you specifically. There could be an issue if the friend regularly drives your vehicle. In that instance, it might be good to consider adding them to the policy by calling your insurance company.

With this information, you should be able to pick out insurance more easily and make the right decisions to ensure that you are legally insured. It’s not always easy finding the best insurance for you and your family, and it becomes much more confusing when you have a full household of people that you have to include on your policy. Do your homework and make sure your family (and your wallet) is getting all the protection they deserve.