You’ve probably let your friend, neighbor, relative, or kid borrow your car before. Or you might have a family car that you regularly share with other people in your household. If it’s your car, your name will be on all the paperwork - title, registration, and insurance. But did you know that other people who regularly drive your vehicle should be on your insurance too?
If you didn’t already know this, you probably have a few questions. Like, why would I need to add a driver to my insurance? How do I make that happen? How much does it cost to add a driver to car insurance?
Insurance premiums can already be a big expense, and there are added costs to having multiple drivers on one policy. But you risk paying a whole lot more if someone not on your insurance gets into an accident while driving your vehicle. So, as per usual, a little more money now can save you big bucks in an emergency.
In this post, we’re going to tell you everything we know how much it costs to add a driver to your car insurance.
When Do You Need to Add a Driver to Car Insurance?
If you live with someone who has an active license and access to your keys, you should add them to your car insurance. This might include:
- Your partner
- Even your unrelated roommate.
Even if they have their own independent drivers insurance, if they drive your car regularly, they should be on your policy.
Some car insurance companies even make this a requirement when you initially purchase your package. But even if yours doesn’t, it’s still a good idea and can save you a lot of heartache if someone gets in an accident.
You should also add people who drive your car regularly, even if you don’t live with them. This might include babysitters, paid drivers, personal shoppers, or anyone besides you who might sit in the driver’s seat.
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You don’t need to add a driver to your insurance if they borrow it only once, or every once in a while. Drivers who only use your car occasionally are protected under what is called a “permissive user” clause. So if your aunt from out of town, kid home from college, or overnight guest takes the Miata out for a spin once or twice, you can rest easy without adding their name to your policy.
There are also certain instances where you shouldn’t add a driver to your insurance. If you live with someone who has a not-so-stellar driving record, you might not want them driving your car at all. And if they were to be added to your insurance, your premiums would go way up.
In this case, you can tell your insurance carrier to add them as an “excluded driver,” which means that they won’t be covered at all by your policy if they crash your car. Just make sure that you keep your keys away from them once they’re on that list!
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How Much Does It Cost to Add a Driver to Car Insurance?
The cost of your car insurance - or “premium” - is dependent on a number of factors related to both the driver and the vehicle. Things like make and model of the car, age of the driver, driving record, and even the state you live in will affect the answer to the question how much does it cost to add a driver to car insurance.
- Vehicle specific insurance is attached to your car itself. The average cost of car insurance in the U.S. is $2,862 per year. A very reliable and practical vehicle, like a Honda-CRV costs less than the average at around $2,346 annually.
By contrast, insuring a luxury vehicle such as the Tesla Model S will cost almost twice as much at around $4,548. * Your age and sex as the primary driver also influences your premium. Young, newly licensed men are charged the most for insurance, around $2,620 for a minimum coverage policy. Women between the ages of 30 and 65, on the other hand, pay less than $600, as long as they have good driving records. * Different states additionally set insurance parameters which affects the cost of car insurance. For example, Michigan has the highest rates for minimum coverage car insurance of any state with an average of around $3000 per year. They also mandate Personal Injury Protection, which contributes to the high price tag.
By contrast, Maine has the lowest insurance rates of any state at around $912 per year. Maine drivers have a low population density and high rate of insured drivers to thank for their inexpensive premiums. * The age of the added driver is the main consideration that will affect your monthly premium. Depending on how old you are, that number could even drop! For example if you are a younger person adding your parents or an older relative or housemate to your plan, you could enjoy a decrease to your premium based on the price range for their age group.
If you are a 25-year-old woman paying $1,463 every six months on your 2015 Toyota Camry, your bi-annual payment could drop to $1,268 if you decide to add on your 50-year-old mother.
This is because older women under the age of 80 are considered “low-risk” drivers, and if they drive your vehicle regularly they are (in the eyes of your insurance) reducing the likelihood that your vehicle will be involved in an accident.
If, however, you’re a parent paying $825 in June and December and you add your newly-licensed 16-year-old, your premium could jump to $2,259. New, inexperienced drivers are considered “high-risk,” and more likely to end up in an accident, hence the high policy premium. But rest assured that this is much less expensive than having your kid get their own policy.
So, how much does it cost to add a driver to car insurance? The answer is anything but simple, and there are so many variables to factor in. Once you’ve read through this post again (and maybe a third time) we recommend calling your insurance adjuster to see what the best rate might be for your specific circumstances.
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