New Driver? What to Know Before Adding Them to Your Auto Policy

Do you have a teen who just got their license or learner’s permit? While they may be excited to finally drive themselves to school and activities, you’ll need to add them to your family’s auto insurance policy before they ever pull out of the driveway.

The same applies if you’ve just gotten married, if you’re sharing a car with a new roommate, or if anyone else has joined your household and plans to use your car. Adding everyone in your household to your policy ensures that you can receive payouts for claims following an accident, regardless of who’s at fault.

Who Must Be Added to Your Auto Insurance Policy

You must add any members of your household with an active driver’s license to your auto insurance policy. This includes:

• A new spouse or partner who moves in with you
• A teen driver who has just acquired their license
• Friends or family members who drive your vehicles more than once per month
• A college student, if they drive your vehicle during school breaks
• Nannies, babysitters, health care workers, and housekeepers, if they regularly use your vehicle

If you don’t list all members of your household on your policy, you could face serious penalties. For example, if a household driver who isn’t listed on your policy crashes your vehicle, you could be denied claims or have your policy canceled.

However, not everyone who gets into the driver’s seat of your car needs to be on your policy. If a friend borrows your car once or twice while his car is in the shop, there’s no need to update your policy to include him. Or if one of your parents drives your car once every few months, they don’t need to be on your policy, either.

The “permissive use” clause of your auto policy states that a licensed driver who borrows your vehicle with your consent will be covered. It’s important to remember, though, that this clause applies only to infrequent, occasional use.

Understanding Permissive Use

Permissive use means that when you give a licensed driver your permission to borrow your car, your auto policy’s coverage generally extends to them while they’re driving it. Generally, auto insurance follows the car, not the driver, so if you lend your vehicle to someone and they cause an accident, your policy is generally the primary coverage that responds. The borrower’s own insurance, if they have any, may act as secondary coverage on top of yours.

Keep in mind that, permissive use is meant for infrequent, occasional borrowing. It is not a workaround for a driver who uses your car regularly. In particular, permissive use generally does not apply to:

• Household members who should be listed on your policy. Living with you and driving your car regularly means they need to be added, not covered as an occasional borrower.
• Anyone you’ve formally excluded from your policy. An excluded driver has no coverage when driving your car, even with your permission.
• Regular borrowers. If someone drives your car more than about once a month, they should be added as a listed driver.
• Using your vehicle for business purposes, such as rideshare or delivery driving, which typically requires its own coverage.

It’s also a good idea to check the fine print on your specific policy. Some insurers extend only reduced liability limits to permissive users, or apply other conditions, so the coverage a borrower gets isn’t always identical to yours. When you’re unsure whether a situation counts as permissive use, the safest move is a quick call to your agent before handing over the keys.

How to Add Someone to Your Auto Insurance Policy

To add a new driver to your policy, get in touch with your insurance agent or the insurance company directly. Before you call, gather the following information about the new driver, in order to provide it to the representative:

• Full name
• Date of birth
• Driver’s license number and state
• Marital status
• Occupation
• Social security number
• Address, if they don’t live with you
• Driving history (including accidents or tickets from the past three to five years)
• Vehicle make, model, year, and VIN (if they are driving a different car than you)

You can add a new driver to your auto policy at any time. It doesn’t have to be done when you renew your policy.

What to Expect

When you add a new driver, you should expect to see an increase in your auto insurance premiums. For a teen driver, you can expect to see a high increase (Forbes Advisor estimates an extra $268 per month). This is because teen drivers are inexperienced and more likely to be involved in accidents.

Nobody wants to see their premiums go up this much. Thankfully, there are ways to earn discounts, especially for teen drivers.

You may also see a small fee if you add a driver to your policy, no matter who they are. Some insurers charge this as an administrative fee, but others do not.

New England Auto Insurance

Looking for a new policy or ways to save? Contact C&S Insurance today. We have more than 60 years of experience helping families in New England find the best policies for the best prices.

FAQs

Do all insurers let you add a second driver?

Yes, most insurance companies let you add additional drivers to your auto policy.

Does a new driver’s record impact your insurance?

Yes, a new driver’s record will impact your premium. If you add a new driver to your policy who has a poor driving record, you will likely see a steeper increase in your monthly payment. For added peace of mind, you may also want to increase your coverage limits.

Can you add someone to your auto insurance temporarily?

Yes, you can add drivers to your insurance on a temporary basis. However, if they’re only going to be driving your car for a week or so, they will be covered under your policy’s “permissive use” clause. If they’re going to be using your car regularly for a longer period, talk to your insurance agent to learn more about adding them to your policy.

What is a named driver vs. an additional driver?

The named driver on an auto policy is the person responsible for making payments, filing claims, and requesting changes to the policy. Additional drivers are anyone else added to the policy.

Can I exclude someone from my auto insurance?

Yes, you can add an excluded driver to your auto policy. This is a helpful option if you live with someone who has a poor driving history, and doesn’t have permission to drive your vehicle.