Wednesday, May 8, 2013

Who should YOU list on your automobile policy?

So, your sister is coming to visit you for a week or so and she may be driving your vehicle. You may wonder; "Should I call the insurance company to list my sister as a driver on my automobile policy?" 
For most insurance companies, the answer would be; No.

It is important to understand that you may not be required to list a driver on your automobile policy if you are lending your vehicle to a licensed friend or family member. Same reasoning applies to a short term visitor in your home who may loan the vehicle on one or two occasions during their visit. But remember, when you lend your vehicle.... you lend your insurance. If the driver has an accident while driving your car, the incident goes on YOUR insurance record.  

"It is stated clearly in your automobile policy that as the policy holder, you have an obligation to advise your Insurance Broker of any driver(s) that have regular or frequent use of your vehicle."

If you do not disclose a driver either on the application or after your policy has been processed, it could mean major problems for you down the road when you may have to put in a claim. Your claim could either be denied or your policy could be cancelled all together.

Here are some examples that outline who should be listed as a driver on your automobile policy.

* Remember every insurance company may have different regulations so we strongly recommend that you speak with your automobile insurer* 

  1.  ANY licensed drivers living in your household
  2. The registered owner of the vehicle
  3. ANY licensed driver who has frequent or regular use of the vehicle. For example, driving the vehicle to school or to work several times a week
  4. ANY person using your car as a part of a car pooling arrangement 
  5. A car that is insured on your policy, but is garaged elsewhere with another driver; this driver must also be named on your policy. For example, your child who is away at school and using your vehicle while he/she is studying. 
Please contact your local broker for any questions you may have concerning who you should list on your automobile policy.

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