Occasional Driver Insurance Coverage

If you own two cars and your teenage daughter drives your car a few times each week then you will need to add her onto your policy. This may increase the cost of your insurance, sometimes quite significantly, but it’s better than carrying insufficient coverage.

On the other hand, if you are retired and you have a daughter that comes to visit you every three months then you likely wouldn’t need to add her to the policy. It really depends on the frequency with which an occasional driver will be using the vehicle. An insurance agent can give you more specific information about this because each company will have different restrictions regarding additional drivers.

A Different Perspective on Insurance for Additional Drivers

Paying for additional drivers may seem somewhat like a money grab but when you look at it from the insurance company’s perspective it makes sense. If every teenager purchased insurance under his or her parent’s insurance coverage then all of the sudden premiums would rise for everyone. All the other drivers on the road would have to subsidize the higher claim rate of teenaged drivers. Instead insurance companies give parent’s higher insurance premiums when the want to add their children onto their policies. Under some circumstances you may be able to convince your insurer to let your son or daughter be rated as an occasional driver. This is not likely if they are living under the same roof and have access to the insured vehicle at all times.

Breach of Insurance

By not getting the proper insurance coverage for an occasional driver, you could have a claim denied for breach of the terms of the insurance policy. This is just as bad, if not worse, than not carrying any insurance in the first place. If someone else is going to be driving your car then pay for the extra coverage. This way you will have peace of mind that your are properly protected should an accident occur.

Discounts and Savings

There are discounts to be found for occasional driver insurance. For example, Meloche Monnex Insurance has an Occasional Driver’s Premium Reduced discount. You will receive reduced premiums if an occasional driver is currently going to school full-time at an educational institution in another city. This is a fairly common discount so ask your insurance agent about your eligibility when you go to renew your coverage.

If you need to save money on your coverage then consider naming your children as drivers on only one of your vehicles. They will only be allowed to drive that car but your coverage will be cheaper.

Don’t forget about traditional discounts such as owning an anti-theft device, insuring multiple vehicles with the same company, insuring your home and auto insurance with the same company, and keeping a clean driving record. At the end of the day, a clean driving record is the best way to keep your premiums low and your family safe.

One Last Warning

It is crucial to let your insurance company know who will be driving your vehicle – even if they are only occasional drivers. Otherwise your insurance coverage may be canceled, or worse yet, your claim may be denied.