Many times, auto insurance can become costly, especially when you have two or more drivers on your insurance or if you do not have the best driving record. For example, you have options if you are adding a new teen driver to your insurance policy or an older relative who uses your car once or twice a month.
But whenever a person borrows your vehicle, there are certain risks associated with lending it out. And sometimes you can be held liable for their actions like accidents.
So what happens with your car insurance policy if someone else is driving your vehicle and gets in a mishap? What happens if they get a speeding ticket? How will it affect your insurance premium?
This article will discuss these questions and introduce you to occasional driver insurance. For any help regarding discounts on occasional driver insurance rates, you may visit this site.
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In regards to car insurance occasional driver is a person in your family who can drive your vehicle but not as the primary driver. According to some insurance companies, an occasional driver is someone who operates a vehicle less than 25% of the time. However, adding an occasional driver is not essential unless they use your vehicle regularly.
For example, if an acquaintance only needs to take your vehicle for one day, this situation will be known as incidental vehicle use. In this case, you do not have to add them to your insurance.
On the other hand, if a family member or friend uses your vehicle every other day, this will be known as frequent use, and this member will be known as an occasional driver. Therefore they have to be added to your insurance policy.
Many people can be added to your car insurance policy:
- Spouse or partner
- Friends or neighbours, or roommates
- Underage children
The basic difference between car insurance for primary driver and car insurance for occasional driver
The primary driver is the person who usually buys the car and also pays for the auto insurance policy. The person usually operates the vehicle most of the time. On the other hand, the occasional driver, who is often referred to as the secondary driver, also drives the car. However, this person will only drive the vehicle on an occasional basis.
An example of an occasional driver may be the owner’s child or a younger sibling. The primary driver usually drives the vehicle to work or school and the occasional driver can use it to run weekly errands.
An occasional driver’s insurance is simply an extension of your original vehicle insurance policy. This insurance policy also includes other people who can drive your vehicle. So you can rest assured that your insurance policy will cover all the damages and expenses if the occasional driver is involved in an accident while driving your vehicle.
However, if the occasional driver is not included in your car insurance policy, there are high chances that the insurance company will deny your claim. So you will be responsible for any damages to your vehicle.
The secondary driver usually drives on an insurance policy that might offer different levels of protection than the primary driver on the same car insurance policy. Also, any teenager driving your vehicle on a learner’s permit is automatically covered without being added to your car insurance policy.
But, if the teen is involved in an auto accident while driving a vehicle without a permit, the primary owner is responsible for all the consequences.
When you add a secondary driver to your vehicle insurance, you might need to pay extra. This is because multiple drivers offer different levels of risk. So your insurance company will be charging extra to offer the correct amount of coverage that you need.
The total cost of adding a secondary driver to your insurance policy will depend on the secondary driver’s age, gender, history of safe driving and driving experience.
For example, you can add a relative who has been driving for 20-30 years and never had an accident, just for a few dollars per year. On the other hand, the insurance company might charge you hundreds of dollars to add your teenage child who has no experience in driving.
This is because, for your car insurance company, teenagers represent the high-risk group. For example, the yearly premium for teenage occasional drivers can be between $7500-9500.
On the other hand, the typical yearly insurance premium for a 40-year-old experienced driver can be approximately 1977$ per year.
As the cost of occasional driver insurance depends on multiple factors, it is recommended that you get in touch with an insurance agent. The cost of insurance can vary from one insurer to another, so it is a good idea to compare car insurance quotes every time you change it. This should be done so that you pay the lowest premium possible.
The first thing you need to do before buying car insurance is to get insurance quotes from various companies and compare them. If you plan to add a new driver like a teenager as the secondary driver, you can get discounts on insurance premiums by enrolling them in programs that help them make a safer driver. In most cases, older drivers easily qualify for a mature driver discount.
Some other discounts which you can opt to reduce your insurance premium are:
- Winter tires discount: The auto insurance company may offer some discounts if you install snow tires on your car.
- Mature driver discount: If the primary driver wants to add a person of 50 years or older with a good driving record, they may qualify for a mature driver discount.
- Graduated licence discount: Once your teenage child has received their class G2 licence, you may get a 10% discount on the insurance premium.
Anyone driving a vehicle even once a month has to be added to your insurance policy as a secondary driver. This ensures that you will receive coverage even if they are involved in an accident. However, if you still have confusion over adding an occasional driver to your insurance policy, you must get in touch with an insurance broker or agent.
Additionally, you also need to be careful while lending your car. It is up to you whether you want to add a secondary driver to your insurance policy or not. If the candidate is a potentially risky driver, you do not have to add them to your insurance policy.