What happens if a driver is not listed on insurance?

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Who drives your car matters just as much as what coverage you carry. Car insurance companies base your rates and coverage on the people listed on your policy, so leaving someone off, whether by accident or on purpose, can cause problems if they’re involved in a crash.

Not listing a driver can lead to denied claims, higher repair or medical costs, and in some cases, even policy cancellation. While occasional use by friends or relatives may still be covered under permissive use rules, anyone who regularly drives your car or lives in your household typically needs to be added. Knowing the difference can help you avoid costly surprises and keep your coverage intact.

What happens if you don’t list a driver on your car insurance?

If you don’t list a regular driver on your car insurance, you could run into serious coverage problems. Insurance companies assess risk based on who is listed on the policy, so leaving someone off, especially a household member or frequent driver, can lead to denied claims or even policy cancellation if they’re involved in an accident. Sometimes, the insurer may still pay for damages but could later raise your rates or refuse to renew your policy.

That said, not every driver needs to be listed. Most policies include permissive use, generally covering friends or family who occasionally borrow your car. However, if someone drives your car regularly or lives with you, they should always be added to avoid coverage gaps and ensure claims are processed smoothly.

Can someone drive your car if they’re not on your insurance?

Most car insurance policies include what’s known as permissive use coverage. This implies that if you permit someone to drive your car, your insurance will typically cover them as long as they:

• Do not live with you
• Are not regular users of your vehicle
• Have a valid driver’s license
• Use the vehicle for occasional purposes only.

Permissive use is designed for one-off or infrequent situations, like lending your car to a friend for an errand or letting a visiting relative borrow it. However, the coverage limits might be reduced for drivers who aren’t explicitly named on the policy, and some insurers may only provide liability coverage, not full collision or comprehensive, under permissive use. 

Additionally, frequent use can be interpreted as regular use by the insurer, which could lead to claim denials if that person is involved in an accident. It’s important to check with your insurance company to understand the specific terms of permissive use in your policy, as rules vary by state and insurer.

What happens if someone else crashes your car?

In most cases, car insurance follows the car, not the driver. That means if you give someone permission to drive your car and they get into an accident, your insurance is typically the primary coverage. However, how the claim is handled depends on the situation:

• Your insurance usually pays first. If the driver had permission to use your car, liability, collision, and comprehensive coverage from your policy generally apply.
• The driver’s insurance may act as secondary coverage. If damages exceed your policy limits, the driver’s insurance might help cover the remaining costs, but this varies by state and insurer.
• Permissive use rules apply. If the driver isn’t listed on your policy and only uses the car occasionally, they’re usually covered under permissive use, though some insurers reduce coverage limits in this situation.
• If the driver wasn’t permitted to use your car, coverage could be denied. Unauthorized use – like someone taking your car without asking – can result in the insurer refusing to pay for damages.

Possible consequences

Even if the accident is covered, it’s your insurance, not the driver’s, that takes the hit. This could lead to:

• Higher premiums. The accident will show up on your insurance record, potentially raising your rates for years.
• Out-of-pocket costs. If damages exceed your coverage limits, you could be responsible for paying the difference.
• Claim denial. If the insurer determines the driver was a regular user who should have been listed on your policy, or if the use was unauthorized, the claim could be denied entirely.

Letting the wrong person drive your car can get expensive, so make sure you know who’s behind the wheel and whether they need to be on your policy.

Do all household members need to be on car insurance?

Yes. Insurance companies want to know about everyone in your household who has access to your car because they consider them a higher risk for regular use. Even if a family member doesn’t drive your car often, the insurer may still require them to be listed or officially excluded from your policy.

If you leave a household member off and they get into an accident, your insurer could deny the claim or even cancel your policy for misrepresentation. The safest move is to tell your insurance company about all licensed drivers in your home so they can either add them or mark them as excluded in writing.

Steps to take to add a driver to your car insurance

Adding a driver to your car insurance is usually quick, but it’s important to provide accurate information so your coverage stays valid. Here’s what to do:

• Contact your insurance company. Call your insurer or log into your online account to start the process.
• Provide the driver’s details. Be ready to share their full name, date of birth, driver’s license number, and driving history (if you have it).
• Explain their relationship and driving habits. Insurers need to know if the person is a household member, how often they’ll drive your car, and what they’ll use it for.
• Review your updated premium. Adding a driver, especially a teen or someone with a poor driving record, can increase your rates, so ask how much your policy will change before confirming.
• Get written confirmation. Make sure you receive updated policy documents or a written confirmation that the driver has been officially added.

Adding someone immediately can prevent denied claims or policy issues if they’re involved in an accident later.

Will my insurance cover me if I drive someone else’s car?

Most car insurance policies cover you when you drive someone else’s car with their permission. Coverage typically extends from the car owner’s policy, which should handle any claims if you have an accident. Your own insurance might serve as secondary coverage if the owner’s policy limits are exhausted.

How adding drivers affects your insurance premiums

Adding another driver to your car insurance can change your premium, sometimes significantly. Insurers base rates on risk, so they’ll consider the newly added driver’s age, driving record, and experience when adjusting your policy.

• Young or inexperienced drivers often raise rates. Teen drivers or those with limited driving history are considered high risk, which can lead to a noticeable increase in premiums.
• Drivers with clean records may have little impact. Adding a spouse or experienced driver with a good driving history may only slightly increase your rates, or, in some cases, lower them if they qualify for discounts.
• High-risk drivers can cause steep rate hikes. If the person has a history of accidents, traffic violations, or DUIs, expect a sharp increase because insurers view them as more likely to file claims.
• Usage also matters. People who drive your car daily will influence rates more than those listed only for occasional use.

Before adding a driver, ask your insurer for a quote so you know how much your premium will change.

Frequently asked questions

Does insurance follow the car or the driver?

In general, car insurance policies typically follow the car rather than the driver. This means that the insurance coverage attached to a vehicle will usually cover anyone driving the car, assuming they have the permission of the owner to use it.

If someone other than the policyholder is driving and there is an accident, the car’s insurance will typically be the first to cover damages and injuries, according to the policy’s terms.

Policies might have certain exclusions. For instance, some policies won’t cover other drivers unless they are specifically named in the policy, or they might exclude coverage for people living in the same household unless they are explicitly included.

What happens if an unlisted driver causes an accident?

If an unlisted driver causes an accident, your coverage may be affected depending on your policy’s terms. If the unlisted driver is a permissive user, your insurance might cover the damages, though at reduced liability limits. However, if the insurer finds that the driver should have been listed on your policy, they may deny the claim entirely or penalize you for withholding information. In some cases, this could lead to out-of-pocket expenses or even policy cancellation for failing to disclose regular drivers.

Are there any penalties if the driver is not listed on car insurance?

Not listing a driver who should be on your policy can lead to denied claims, higher premiums, or even policy cancellation. If an unlisted driver causes an accident, you could be stuck paying out of pocket for repairs or medical bills. Insurers expect you to disclose all household members and regular drivers, so always check with your company to avoid costly problems.

Why should you list all drivers on your car insurance?

Listing every regular driver on your policy ensures they’re properly covered and prevents claim issues. Leaving someone off can lead to denied claims, higher premiums, or even policy cancellation, so it’s better to be upfront with your insurer.

Why should you regularly update your car insurance policy?

Regularly updating your car insurance policy is essential to ensure that all drivers and vehicles are adequately covered. Start by reviewing your policy documents and identifying any changes that need to be made, such as adding new drivers or updating vehicle information. Contact your insurance provider to discuss these changes and follow their procedures for updating your policy.

It’s also important to review your policy annually to account for any lifestyle changes, such as new drivers in the household or significant changes in vehicle usage. Keeping your policy up-to-date helps prevent coverage gaps and ensures you comply with your insurer’s requirements. Proactive policy management can save you from potential claim denials and financial risks in the event of an accident.

Can I exclude a driver from my car insurance policy?

You can exclude a driver from your car insurance policy in certain situations, such as when a household member has a poor driving record or no longer drives your vehicle. Excluding them keeps their driving history from raising your premium. However, keep in mind that an excluded driver has no coverage under your policy. If they drive your car and get into an accident, your insurer won’t pay for any damages.

Is there a limit to how many unlisted drivers can use my car before it affects my insurance?

There isn’t a specific limit to how many unlisted drivers can use your car before it affects your insurance, but the frequency and nature of their use are key factors. Insurance companies typically allow occasional use by unlisted drivers without a problem. However, if someone who isn’t listed on your policy drives your car regularly, it increases the insurer’s risk and could result in higher premiums or even policy cancellation.

Nupur Gambhir

Managing Editor

 

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Nupur Gambhir is an insurance expert and managing editor of Insure.com. She specializes in life and health insurance content, and has experience as a marketing consultant.