Who is the Principal Driver on My Auto Insurance Policy?

Your auto policy will typically cover all the people in your household and multiple vehicles. But the person who drives a vehicle most often is defined as the "principal driver" for that vehicle. Other persons covered by the policy would be considered as "occasional drivers" of that vehicle. You can also exclude persons from driving your vehicles and have them listed as "excluded drivers" on your policy.

Auto insurance companies list all people in a household with a license on a policy since all of them have access to the covered vehicle with or without explicit permission from the owner. But they designate the principal driver status based on most frequent and maximum usage.

Such a designation determines your insurance premium. If the principal driver has a good driving record, the premium will be low. The premium will also depend on the principal driver's average annual mileage and applicable discounts. Addition of occasional drivers to the policy will take into account their driving histories as well, but usually it does not substantially increase the total premium. So buying a common policy provides significant cost savings when compared to purchasing separate policies for the occasional drivers.

If you have teenage children, be sure to list them as occasional drivers if they do not use your vehicle often. Adding adults as occasional drivers typically does not change your premium. When purchasing an auto policy for your vehicle, list other users as occasional drivers in your household so that you can get the best rates.

Your auto policy should state clearly the designated principal driver for your vehicles. If the principal driver changes, it is important to update the information with your insurance company as it can affect your insurance premium.