Premiums are calculated based on particulars provided by policyholders. And the assumption is that they are usually accurate and true. However, you may borrow your car to someone else from time to time. Although auto insurers know about the listed ones they don’t know anything about occasional drivers. Therefore, it is hard to price the risks they bring on the table since they don’t have regular access to the vehicle. However, it seems that underwriters consider such possibility and charge for it.
How Does Car Insurance for Occasional Drivers Work?
Generally, anyone you hand over the car keys is covered by your policy. However, you may have agreed to limit them to the ones listed in the schedule in return for lower rates. Therefore, it is always recommended to check the exact position before assuming anything. So call them up and ask about the terms and conditions or check the documents.
Your permission is very important. Carriers will not cover if it is taken without a prior consent. They will be liable for the damages they caused. If they have stolen the automobile they will have to face the legal consequences when they get caught.
Also, they will not cover the driver if he/she is using the vehicle for commercial purposes. Any personal use like going to shops or running a domestic errand would be acceptable. But they cannot carry machinery or any other equipment for business.
Do I Need to Add Someone who Drives my Car Often on Insurance?
When somebody has frequent access you will need to list that person. Everybody has own way and that is why some people are more prone to accidents and some less. They priced you after seeing DMV record, credit history, etc. These can be quite different for another person you want to include. So, occasional and frequent access is completely different things. For example, you should add girlfriend to insurance if she is using the car often.
There is an option for people who don’t own but often use others’ or rented autos. People can be held personally responsible for the damages they caused and therefore arranging non-owners vehicle insurance could be beneficial. It provides primary liability coverage for rental cars and primary or secondary for others depending on the status of the vehicle operated at the time. It has no provision for the repairs of the automobile in control.
If you don’t have coverage for other people you can arrange it temporarily. For example, if friends are coming over to stay with you for couple of weeks you can include them for that duration at a minimal additional premium. Actually, it would be better to tell them about things like the example regardless of arrangements in place.
As mentioned-above buying a policy with driver exclusions can work out cheaper. So, you can save money all the while and you can anyone who might need to use it for the exact duration. This may be a better solution for people who don’t normally lend their auto to others, rather than having it on and spending more money.