When it comes to car insurance, many people know that it’s required, but not everyone understands who should be included on the policy. While your insurance will cover you as the primary driver, there are others who may need to be added, depending on your situation. Let’s take a look at who should be on your car insurance policy and why.
Anyone with a Driver’s License
First and foremost, anyone in your household with a valid driver’s license should be added to your car insurance policy. This is especially important if they will be driving your car, even occasionally. Whether it’s a spouse, significant other, children who are near driving age, or roommates, they need to be included.
In most cases, the people you add to your policy who will actually drive your car are referred to as “rated drivers.” These are the individuals who will directly affect your insurance premium. This is typically limited to you and others in your household who have a driver’s license.
However, if there are people in your home who have their own insurance but do not drive your car regularly, they can be listed as “excluded” drivers. In some cases, insurance providers may ask for proof of their own policy.
Some insurance providers may require every licensed driver in the home to be listed or excluded from the policy. Others may extend coverage as long as that individual has their own car insurance policy, and they may not directly affect your premium.
Members of Your Household
What about individuals in your household who either can’t drive yet or don’t have their own insurance policy? You still need to let your insurer know about them.
For example, teenagers who are about to start driving but haven’t yet earned their license should be listed as “listed drivers” (although they won’t impact your premium until they’re licensed). If someone in your household has an impairment that prevents them from driving, or an elderly person who no longer drives, they can be marked as a “non-driver.”
Listed drivers do not impact your premium, but they should still be acknowledged by your insurer. This is often helpful for teenage drivers who are in the process of learning to drive.
Non-drivers are individuals in your home who won’t be driving, don’t plan to get a license, or have already surrendered their driving privileges. This category can include people with physical impairments or senior citizens.
Non-Household Members
There are also situations where you may need to list people who don’t live in your household. These include children who are away at college, a nanny, or someone in the military. If these individuals may occasionally drive your car, your insurance policy may need to reflect that.
The bottom line is that everyone in your household who has a driver’s license should be noted on your policy. Depending on your specific situation, you may also need to include individuals outside your home, especially if they occasionally drive your vehicle.
