Car Insurance for People Driving Your Car

UPDATED: Jul 12, 2023Fact Checked

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 12, 2023

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UPDATED: Jul 12, 2023Fact Checked

Every now and then, you allow someone else to drive your vehicle. Whether for the convenience of running an errand or because you have hired them to take care of you or your children. Depending on the relationship you have, the reason for them driving your car, and how often they will drive your vehicle, you may need to add them to your car insurance policy or have them get their own policy for your vehicle.

TIP: If you do not list the driver on your car insurance policy, and you are required to, be prepared to face the possibility of non-renewal or cancellation of your policy. Ask your insurance company if you need to add your personal employee to your car insurance policy.

Insurance for Occasional Users

If you occasionally allow someone like a roommate or a spouse to drive your car, then you probably do not need to take the step of adding that person to your car insurance policy. In such a case, you are lending someone your car and they should be covered by your car insurance policy. A car insurance policy runs with the car, and will cover you vehicle regardless of who is driving it as long as you gave permission. If the person driving your vehicle is involved in an accident, you could see your premium payments go up even though you were not driving, so be careful about lending your car to people!

Insurance for Your Personal Employees

Insurance companies always want to know about all drivers in a household. Therefore, if you have hired a nanny, driver, or other personal employee to regularly use your car, you should call your agent or your insurance carrier and let them know that this person is an approved driver on your car insurance policy. They should be listed on your insurance as a member of your household and a driver of your car. The insurance company will review their driving record, and can adjust your premium payments accordingly.

If the nanny, au pair or other hired help is only working for you for a short time, it may be best just to grant her permissive use of your vehicle which would give her coverage. Make sure that this driver is considered a legally license driver under your policy for your state.

TIP: Because your insurance company will factor driving history of all listed drivers into car insurance rates, you might want to make a good driving record a condition of employment—not only for your insurance rates but for the safety of your kids and others.

How to Add an Authorized Driver to Your Car Insurance Policy

Start by checking with your agent or auto insurance carrier prior to hiring the driver to see exactly what your policy provides and the cost to add an authorized user on your insurance policy. You will need to know the following:

  • Miles Driven: Any increase in premium will be influenced by the number of miles driven. This is a major factor, if the driver only drives occasionally-maybe 15-25 miles per week, your premiums will probably remain the same.
  • Driving Record: Ask your prospective driver about his or her driving experience. Ask about any driving violations/accidents/infractions. Get authorization to check their driving record, and be sure you want them to drive your car before making a decision about hiring them.

Sometimes your auto insurance agent can obtain this information for you, but some states do not allow this. Since the driver is using your personal car, you will be responsible for paying any damage in the event of an accident while driving your car.

TIP: Always remember, if someone else crashes your car as well as cause property damage or injury, you can be held financially liable. Therefore make sure you know the driver and his driving record before advising your insurance company that this person will be driving your car on a regular basis.

Having a personal employee drive your vehicle is convenient, but make sure to call your insurance company or agent to see what coverage, if any, that person needs. It could make the difference between you being financially liable for an accident of injury and having insurance coverage. If your insurance company increases your premium payment significantly, you can compare other car insurance policies and find the best one that works with you.

If you need to shop for a car insurance policythat includes your personal employee, click here to visit the Free Advice quote center!

Read More Articles About Car Insurance For Loaned, Borrowed, And Rented Car

Case Studies: Car Insurance for People Driving Your Car

Case Study 1: Occasional Users

Samantha occasionally lends her car to her roommate, Emily, to run errands. Since Emily is an occasional user, Samantha’s car insurance policy covers any accidents that may occur while Emily is driving. However, Samantha is aware that her premium payments may increase if Emily gets into an accident, so she lends her car with caution.

Case Study 2: Personal Employees

John hires a nanny, Lisa, who will be regularly driving his car to pick up and drop off his children. Understanding the importance of proper coverage, John contacts his insurance company to add Lisa as an authorized driver on his car insurance policy. The insurance company reviews Lisa’s driving record and adjusts the premium payments accordingly.

Case Study 3: Ensuring Liability Protection

When lending his car to his friend, Michael, Alex checks with his insurance company to determine the coverage needed. He discovers that Michael should be added as an authorized user on the policy to ensure liability protection. Alex takes this step to avoid being held financially liable in the event of an accident or injury caused by Michael while driving his car.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

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