How Non-Listed Drivers Can Affect Your Auto Insurance Policy

There are a number of things that can affect your auto insurance policy in very deep and profound ways beyond what you may think. You may not realize that your credit history can affect your auto insurance policy as well as your vehicle's safety history, but one other thing will affect your policy deeply. Drivers that are in your household and not listed on your policy will affect you in various ways. Depending on the type of auto insurance you have, it could affect you more than you realize.

If your auto insurance company is formed as a "standard" insurer (as most major companies are) they will have a very liberal approach to allowing people not listed to drive your vehicle. Rules will generally come down to if the person has regular access to the keys to the vehicle they are considered to have permission to drive your vehicle. In this case the insurance company will pay for the damages caused by the accident, but it will cost you. Standard insurers include all drivers in your household on your policy and are charging you for them regardless of if they drive the vehicle.

If your auto insurance company is formed as a "non-standard" insurer they will have more exclusions listed in your policy and will specifically exclude drivers. This is where it is important to know what kind of company you are insured with and how they approach these situations. If your auto insurance company is a non-standard insurer the policy premium will likely be much cheaper, but this is because less is covered under the actual policy. In this case, less is not more, less is actually less. Only select a non-standard company if you can't get insured elsewhere or you can't afford standard insurance.

The reason that these other drivers will so greatly affect your rates is that they are another way that the insurance company will possibly have to pay out money to repair your vehicle. Even greater, these individuals could cause damage to someone else's vehicle or injure the other party, meaning large liability payouts.

When you are getting your insurance policy started you should ask questions of your agent as to which type of company they are and what they do. Have them go over the policy with you to show how other drivers are treated and what you can do to make sure your vehicle is always covered. Non-listed drivers can be a big burden on your auto insurance policy and you should think about them any time you apply for insurance.