All of the coverages in your auto policy apply when you are driving. Did you know that they also apply when other people are driving your vehicle? When you purchase auto insurance, the coverages are actually for the car, not the person.
* Note. If someone is going to be a regular user of your car, that person's name should be added to the policy.
Your insurance company wants to know who's going to be using the car. After all, you could be a great driver with no tickets or accidents, but your spouse, your teenage child, or your reckless cousin could be a lousy driver…it happens!
If you allow everyone to drive your car without telling your insurer, and these people keep getting into accidents…YOU look bad! Your insurance company isn't going to be happy, and they may cancel your policy as a result.
* Tip. It's not wise to risk losing your policy by failing to disclose who's driving the insured vehicle. Keep in mind, however, that if you add drivers with lousy records or who haven't had much driving experience, your premiums will go up. Let’s repeat..lousy drivers=increased premiums. Would you loan your car to a friend, knowing that they are involved in a car wreck every other month? I’m sure we all know the answer…
Teens are another factor. Any parent of a driving teenager can tell you this; teenagers are notorious for getting tickets and having accidents. They are also very inexperienced drivers. As such, when your child gets his or her license, your insurance premiums will go up when he or she is added to the policy.
If you buy all six of the major auto insurance coverages (see older blog), your policy will cover you in most instances in which you cause damage or injury to your car, yourself and your passengers, or drivers and passengers in other vehicles.
But not all.