Streetsmart insurance Blog
An unlisted driver is an individual who can drive your vehicle despite the fact that they are not included on your auto insurance policy as a listed driver. There are multiple reasons why you may ask an unlisted driver to use your car, but they generally fall into two categories: drivers who should not be listed on your insurance policy, and drivers who should.
By law, you are required to list every person who lives in your home and is of legal driving age on your policy if they do not have their own auto insurance. Your insurance company will take those potential drivers into account when they calculate your risk and determine the total cost of your insurance policy. In this scenario, if an unlisted driver gets into an accident in your car, your insurance company could withdraw their coverage and cancel your policy.
On the other hand, you are not required to list drivers on your policy that do not live with you and/or have their own auto insurance coverage. When you give a friend, extended family member, or stranger permission to drive your vehicle, you are also extending the coverage from your auto insurance policy to that unlisted driver. If they get into an accident in your car, your policy will cover the cost of any physical damage or bodily injury that they cause (although they may be required to submit a separate claim to their own insurance company to determine how both policies will split the costs). Unfortunately, you may still be penalized for letting an unlisted driver use your car: your insurance company can increase the cost of your insurance policy if an accident occurs.
You can protect yourself from unnecessary losses by taking precautions. Make sure that everyone who lives with you is listed on your insurance policy if they are of age, and think carefully the next time a friend, family member, or stranger asks you to borrow your car.
Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first commercial auto insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!