How does insurance work? Do I insure my car or the drivers?

Question

We have three teen drivers. One is 18 with her license but is away at college. Two have permits. None own their own cars, but drive those registered to the parents. When I was fussing about how expensive it will be to add two more drivers to our insurance policy, my Dad became very involved and is determined that the insurance policy of the car's owner covers the car no matter who is driving it. He says we insure the car not the drivers and thus we do not need to add the young drivers to the policy since they are not owners. He says that if they are in an accident, our policy will cover them. Is this true. We are in NC.

Answer 1

Since all insurers are different and they all have different policies you won't find a precise answer here.

If you want to be 100% you should phone your insurance policy and ask them instead.

In fact I'd phone them today and get their opinion, then I'd let a week pass by and would phone them again, and speak to a different person. Sometimes you might get 2 different answers even from the same insurance company.

Try it and see for yourself. (it works with ALL companies, not only car insurances)

Answer 2

Unfortunately, your Dad is wrong. Your insurance covers the car, as well as your liability for accidents and medical expenses. However, your premium rates are based not only the type/make/model of car, but where you live, who drives the car, the ages of the drivers, the driving records of the drivers, and the miles they drive. If you fail to notify the insurance company of drivers, they can justifiably reject any claims you make and not pay for damage and injury to others, which could open you up to law suits.

So, in summary, insurance covers the car, but insurance rates are determined in large part by who drives the car. If the kids don't live at home, and don't drive the car on a regular basis, you may not have to add them to the policy. But you should ask your insurance company to be sure.

Answer 3

Some insurance policies have driver restrictions.  You can have a name-only policy which only covers the vehicle and the policy holder (basically).  Some policies will not cover an unlicensed driver.  Yes, insurance policies cover vehicles but there are conditions and exclusions in policies too.  It's not that simplistic.

Most insurance companies will not rate a permitted driver, however each state is different.  In same states, they may request young drivers be put on their own policy, which may keep the parents from going into a non-standard carrier.  Drivers away at college tend not to significantly increase the premium as they have less exposure to the vehicles.  If you want to play the game of not putting the young drivers on the policy, good luck.  If you have a claim and they find out about the unlisted drivers, they could potentially backrate your policy and charge premium from when they became licensed.  How would you like to obtain a bill for adding the drivers back 2 years?  And they won't give you any grace period or payment plans.

Answer 4

YOu are not the only one,I have ever met the similiar problem before.I have good experience here though.http://carinsurance.expertsupport.info/a...

Answer 5

Iam in Indiana and my agent says everybody who drives my cars on regular bases has to be on policy. Now anyone is covered when I give permission that dont live with me, now my grandaughter comes over once in awhile and drives with permit its ok because she dont live with me. shes covered. I have Allstate