There are many reasons why you may need to lend your vehicle to someone else temporarily. Whether it’s a one-time need or a recurrence, you might wonder how to address your insurance coverage.
Insurance companies understand the need to insure temporary drivers; they’ve made it possible to extend coverage in these scenarios. This blog outlines how to add temporary drivers to your auto insurance policy and the steps to update your policy.
Why You Should Add Temporary Drivers to Your Insurance
Adding a temporary driver to your auto insurance policy ensures financial protection for the policyholder in the event of an accident. If a driver isn’t on your policy or doesn’t have coverage, you could face major out-of-pocket costs or voided coverage. Any accident caused by an uninsured driver borrowing your car may leave you facing repair costs, legal fees, or increased premiums.
Temporary drivers might be family members visiting from another state or friends borrowing your car occasionally. These drivers aren’t typically covered under standard insurance policies unless explicitly noted. By taking the necessary steps to add them to your plan, you can gain peace of mind that your vehicle and the trusted drivers have the necessary protection.
What Is Permissive Use?
Permissive use is a feature included in many auto insurance policies that allows someone who isn’t listed on your policy to drive your car with explicit or implied permission. It automatically extends coverage for occasional drivers, such as friends or family members who may need to borrow your vehicle temporarily at no additional cost.
This coverage ensures that if the person driving your car gets into an accident, your insurance policy can help cover the damages according to your policy limits and terms. However, this type of coverage is typically intended for short-term, infrequent use rather than extended use driving by someone outside the policy.
Limitations of Permissive Use
It’s important to note that permissive use can have limitations. Some insurance companies provide reduced liability limits for permissive drivers, meaning their coverage might not be as extensive as it is for the policyholder.
Additionally, permissive use generally does not apply to drivers who live in your household or use the vehicle regularly. Usually, it’s required to add the individuals to the policy as named drivers.
Many insurance companies define infrequent use of another person’s vehicle as less than 12 times per year. Understanding these details can help ensure that you’re adequately covered and avoid potential issues in the event of an accident.
Permissive Use vs. Named Drivers
Named drivers and permissive users differ in their auto insurance policy coverage. To temporarily add a driver to your auto insurance policy who will drive your vehicle more frequently or for someone living with you, the best route may be to list them as a named driver.
Named drivers are individuals explicitly listed on the policy; they have an entitlement to the full range of protections, including collision and comprehensive coverage. This means they receive the same level of coverage as the primary policyholder.
On the other hand, permissive users are those not listed on the policy but are allowed to drive the car with the owner’s permission. While permissive use is suitable for occasional, short-term drivers, named drivers offer a safer option for anyone driving your car more regularly. Adding a temporary driver as a named driver offers greater security, reduces potential risks, and provides clarity to the insurer in the event of an incident.
Steps To Add a Temporary Driver
If permissive use doesn’t meet your needs, the following steps outline how to add a temporary driver to your auto insurance policy.
Review Your Policy Terms
The first step is to review your policy’s terms on permissive use and add named drivers. Check the fine print for specific details, including frequency limits, coverage exclusions, or any rules tied to temporary drivers.
By understanding these terms, you can determine whether adding the driver is necessary or if permissive use provides adequate protection. Contact your insurance provider for clarification if you’re unclear about the policy’s language.
Gather Details About the Driver
To add a temporary driver, your insurance company will require specific personal details about them, such as their:
- full name,
- date of birth,
- driver’s license number,
- and driving history.
Be prepared to share any incidents or claims on their driving record, as this information will help insurers assess potential risks. Having this information ready beforehand can streamline the process.
Contact Your Insurance Company
After gathering the driver’s information, contact the insurance company to add them to your policy. Most insurance providers allow you to make these changes over the phone, through the online portal, or by speaking with an agent.
Be clear about the driver’s temporary status. Ask for an explanation of the changes being made to your policy. Ensure a timeline is in place for how long the driver will have coverage.
Check How Temporary Drivers Affect Your Premium
Adding a temporary driver to your policy may increase your premium, especially if that driver has a limited or risky driving history. Ask your insurance provider if adding the temporary driver will affect your rates and to what extent.
If the premium adjustment seems too high, request details about why it increased and inquire about available discounts to offset the cost. Understanding this information will help you decide whether to keep the driver on your policy.
Finalize Changes
After confirming all details and agreeing to any potential premium adjustments, finalize the addition of the temporary driver to your auto insurance policy. Always verify that you’ll receive updated proof of coverage that lists the temporary driver. This step ensures that the vehicle and the driver have adequate coverage in case of any incidents.
Conclusion
Whether you rely on permissive use or add a temporary driver as a named driver, policyholders should extend their auto insurance coverage to avoid potential liability or coverage gaps in the event of an accident.
Take a proactive approach when managing your auto insurance policy. Discover if you can save on auto coverage by requesting a California auto insurance quote through Saferoad Insurance. Contact our agents to explore coverage options for an auto policy that matches your driving needs and budget.
