An insurance policy comes with many things; many which have stipulations. Your insurance policy requires you to make sure you list out your drivers by name on the policy itself before they are allowed to drive your car. If they are not listed on the policy as a named driver, they will not be covered. This often happens with households that have more than one person of driving age as well as couples.
Just as anything, named drivers on the policy have their good points and they have the bad points. Having named drivers ensures that your car will only be driven by the listed individuals; if not, they do not have your consent to drive. Having multiple drivers on a policy also allows for a flexible situation. It works very well for families.
The major downside of named drivers on an insurance policy is the extra cost that is brought about when placing them on. The insurance company sees them as a greater liability for a few reasons. The main reason is that you have just increased your chances of an accident with multiple drivers. Also, they are not as experienced or familiar with your car usually. Other factors that might raise this amount are the age of the driver and the experience of the driver. New drivers have very high rates.
A way you might be able to skirt this cost is by finding an insurance provider that allows you to put temporary drivers on the policy for a small cost. This will let you allow other people to drive your care at certain points and still be covered. This type of situation can be for vacation road trips and the like.
It is always good to keep in mind that you are going to be responsible for the damages to your car or anyone else car if a person were to get into an accident in your car without being listed as a named driver on your policy. Moreover, you will also be responsible for any bodily harm that might be incurred because of the accident. These are all things to keep in mind; this is why insurance was created.
Taking steps to legally minimize costs associated with adding drivers on instead of letting them illegally drive your car is seem through joint policies. In other words, if a newer or younger driver is looking to get car insurance, they can opt to go onto their parent?s insurance policy. This is a common way parents lower premiums. It is also becoming largely recognized by insurance companies as well.
Another way is to have the new driver?s policy in their name but put their parents as named drivers as well. The whole point of either option is to limit risk that is associated with a new driver. As we know, risk is associated with young and new drivers.
As you can see, a named driver is essential to the whole automobile insurance process and can sometimes add up depending on the situation at hand. Always check your options and shop around.
Just as anything, named drivers on the policy have their good points and they have the bad points. Having named drivers ensures that your car will only be driven by the listed individuals; if not, they do not have your consent to drive. Having multiple drivers on a policy also allows for a flexible situation. It works very well for families.
The major downside of named drivers on an insurance policy is the extra cost that is brought about when placing them on. The insurance company sees them as a greater liability for a few reasons. The main reason is that you have just increased your chances of an accident with multiple drivers. Also, they are not as experienced or familiar with your car usually. Other factors that might raise this amount are the age of the driver and the experience of the driver. New drivers have very high rates.
A way you might be able to skirt this cost is by finding an insurance provider that allows you to put temporary drivers on the policy for a small cost. This will let you allow other people to drive your care at certain points and still be covered. This type of situation can be for vacation road trips and the like.
It is always good to keep in mind that you are going to be responsible for the damages to your car or anyone else car if a person were to get into an accident in your car without being listed as a named driver on your policy. Moreover, you will also be responsible for any bodily harm that might be incurred because of the accident. These are all things to keep in mind; this is why insurance was created.
Taking steps to legally minimize costs associated with adding drivers on instead of letting them illegally drive your car is seem through joint policies. In other words, if a newer or younger driver is looking to get car insurance, they can opt to go onto their parent?s insurance policy. This is a common way parents lower premiums. It is also becoming largely recognized by insurance companies as well.
Another way is to have the new driver?s policy in their name but put their parents as named drivers as well. The whole point of either option is to limit risk that is associated with a new driver. As we know, risk is associated with young and new drivers.
As you can see, a named driver is essential to the whole automobile insurance process and can sometimes add up depending on the situation at hand. Always check your options and shop around.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car and vechile portal.
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