For your own protection, it is important that you have anyone who will be driving your car listed on your insurance policy. If you loan your car, even for just a few minutes, to someone who gets into an accident, your insurance company may deny the claim unless that person was listed on your insurance before the accident.
Because insurance are insuring your car against property damage and bodily injury to other people, they reserve the right to know who will be operating the vehicle. The reason for this is because each person carries a unique risk value, and insurance companies are entitled to base your premiums on the perceived risk of all drivers who will be using the car.
When you add a driver to your insurance policy, the insurance company will need to have that personâ€™s driver license and social security numbers. This allows the insurance company to check the personâ€™s driving history and credit score, both of which are important factors for determining risk. Your insurance premiums may be adjusted up or down according to the new driverâ€™s information and how frequently they will be using your car. As the primary driver, your information will have the greatest impact, but all other drivers will have an affect too, and adding a driver under the age of 25 could cause your premiums to increase by 50% or more.
If you have added someone to your insurance policy and your rates have increased excessively, it may be time to shop around for a new insurance carrier. You can save time by using a car insurance quote website that can tailor a policy for your specific needs and then compare the premiums between numerous insurance companies. If you find a company that offers what you need at a price you are comfortable with, you can even sign up online, and print out your new insurance cards for immediate use.