The question of who is insured by your auto policy may seem like basic knowledge. But are you familiar with the consequences if your policy is not written appropriately? The first step in making sure your policy is written appropriately is understanding who is and should be covered under the auto insurance policy. So, let’s look at who is covered by the auto insurance policy.
First, the named insured. The named insured is the person who owns the policy. Their name shows at the top of the declarations page. They are the primary insured on the policy. They carry the rights to make changes to the policy and to cancel the policy.
Second, the listed driver’s. Your auto insurance policy declarations page lists the people and vehicles that are covered under your policy. Most preferred carriers are going to require this to be anyone that is a resident of your household, has regular access to your vehicles and that has a driver’s license. If you have members of your household with a driver’s license, then they should be listed as a driver on your insurance policy. On the other hand, driver’s that are no longer residents of your household should get insurance of their own and be removed from your policy. (The one exception is children that are away at school.)
Permissive Use Driver’s
Third, permissive use driver’s. Permissive use means someone to whom you give permission to drive your vehicle. You might be familiar with the adage, “Insurance follows the car”. Your policy provides coverage for anyone that you allow to drive your car. It doesn’t matter if they have their own policy in force elsewhere. If they do damage while driving your vehicle then your insurance policy will be affected first.
It is possible this article raised some questions in your mind regarding your current coverage. It is important that you get with your agent if you have any additional questions or information that needs to be amended. Carriers could require additional premium or issue a policy cancellation at the time of a claim because a driver’s and vehicles do not match their guidelines. We cannot speak for insurance companies that we do not represent but we always want to be sure that you have taken the time to ask the right questions of your agent to prevent a financial hardship.
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