Adding a driver to your car insurance policy can be a double-edged sword. Keep reading to learn more about adding a driver and how to do it to your advantage.
8 minutes
08.31.2023
Car insurance premiums continue to rise, with recent state insurance reports forecasting that the highest premiums will cost nearly $5,000 annually by 2033. Weather, inflation, and legislation significantly impact the cost of car insurance, regardless of the state you live in. With such a steep hike in car insurance premiums, adding a driver to your insurance is one more way insurance companies can increase your monthly payment.
You're not alone if you’re curious about when and how to add a driver to your car insurance policy. Many struggle with costly car insurance premiums, especially with higher coverage requirements from leasing and financing. However, there is a time and place when adding a driver to your car insurance policy isn’t only required by law but also a smart financial move.
Are you tired of dealing with car insurance companies? Subscribe to the vehicle you want with FINN. You’ll pay one monthly premium, which includes insurance, to subscribe to your chosen car. You can also add related drivers who’ve had their license for two years or more and are at least 25 years old—for free.
You can add a driver to your car insurance policy at any time, whether they’re:
You can even add someone to your car insurance policy if they don’t live with you. Some insurance companies require you to list drivers of eligible age who live at your address. You can also include excluded drivers on your car insurance policy, limiting who is covered by the policy should you need to make a claim.
Adding someone to your car insurance policy can be helpful for car leasing with insurance. Insurance coverage on your leased car for a friend or significant other means you’re covered should an accident happen, no matter who was driving. Car insurance coverage is one of the documents you need to lease a car, but you can easily add your spouse, friend, or caregiver to your policy after the fact.
Typically, car insurance policies cover the car. However, you can extend your car insurance coverage to “permissive users” or drivers with explicit permission to drive the vehicle temporarily. Defining temporary can be difficult in most cases, but it’s often used to denote drivers who don’t usually drive the car.
Adding a driver to your car insurance policy can have several different effects on your policy premiums. It’s always a good idea to discuss adding someone to your policy before you do so. Be sure to tell the driver you added that your policy covers them. They may also share characteristics that could make you eligible for discounts on your premium.
If someone drives your car frequently, adding them to your insurance policy is a good idea. However, most insurance companies will limit how many drivers you can add to your policy. If you’re unsure about adding a driver to your policy, speak with your insurance representative. They can help clear up any confusion you have.
Adding someone to your car insurance policy for one day isn’t typically common practice, nor is insurance for a weekend car. Most of the time, single-day use falls under the permissive drivers clause. However, each car insurance company will have its own policy specifics, so chatting with your local representative beforehand can give you the most accurate guidance on what to do in this scenario.
Here are a few reasons why you should add someone to your car insurance policy:
If you want to pause your car insurance if you’re not driving but your caregiver is instead, it may make more sense for them to add your vehicle to their existing policy. Adding them to your policy can also help them earn a multi-car discount if they aren’t already eligible.
When you don’t add a driver to your car insurance policy, and they get into an accident, the insurance company may refuse to pay out. The insurance may refuse to pay for your vehicle, which may have been totaled in the accident. Without coverage, you could be out of a car, of any fees you’re responsible for, and potentially out of a friendship.
Suppose you avoid adding a driver to your insurance policy because they have a poor driving record or any other characteristics that would otherwise increase your premium. In that case, you expose yourself to these risks as well. A good rule of thumb is to let only the people you trust drive your vehicle, especially if you choose not to add them to your insurance policy. Saving a few bucks a month isn’t worth paying thousands of dollars in case of an accident.
Adding a driver to your car insurance policy is typically free, though some companies charge $30 to $50. However, the cost of adding someone to your insurance policy typically comes in the form of discounts or additional costs their presence may trigger. For example, your policy may actually be lower if:
On the other hand, adding someone else to your policy can mean your car racks up more miles annually. More time on the road increases your chances of an accident. In addition, your rates may increase due to:
If you want to add a driver to your leased insurance policy, you already know that insurance on a leased car is more expensive. However, you can take the opportunity of adding another driver as a way to cash in on discounts you wouldn’t otherwise be eligible for. It’s all about maximizing what’s available to you to make the most of your circumstances.
Rather than playing the guessing game, you could pay less for car insurance if you subscribe to FINN. Each FINN car subscription comes with a free second driver you can add to your subscription, so you can both enjoy the benefits. FINN also charges a single monthly fee for insurance, registration, depreciation, and maintenance. This bundling can simplify your monthly car-related costs and play nicely with your budget.
Adding someone to your car insurance policy only takes a few minutes. Here are the basic steps in adding someone to your car insurance policy.
Whether you initiate the discussion or the driver does, talk about why the driver should be on the policy and what pros and cons this may offer. You can include your local car insurance representative in this discussion. They can advise you on whether adding that particular driver is a good decision or not.
Once you’ve agreed to add a new driver, it’s time to submit the information to your insurance company. Gather this information from the driver or have them contact the insurance office to provide it themselves:
Various car insurance companies will offer discounts for being a student, participating in and passing a defensive driving course, active military members, etc. Be sure to mention any of these if they apply to you or inquire about any additional discounts you may qualify for.
Adding someone to your car insurance policy is a click or call away. You can also log into your account online to add a driver to your policy. The online system will walk you through what information you need from the driver. In addition, you can call your representative to add the driver to the policy manually. This time can often be an excellent opportunity to discuss what discounts or incentives your policy may qualify for with the additional driver.
Print and share any updated policy documents with the driver you added to your policy. They will need these documents for reference should an accident occur. Upon renewal of your insurance policy (typically every six or 12 months), update the driver with any new coverage documents.
Adding a driver to your car insurance policy can be smart, even if it may cost you a few more dollars on your annual premium. Having additional drivers on your car insurance policy can bring peace of mind and the financial assurance that car insurance provides. While some drivers may experience a reduced car insurance premium, adding a driver is more about responsibility than saving money.
If you truly want to save money on your car insurance, check out a FINN car subscription. FINN lets you pick the exact car you want, from color and trim level to how you want to pick it up. Choose from six and 12-month subscription terms to fit your lifestyle. Once your subscription is up, you can subscribe to FINN again as many times as you want.
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