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Most people don’t realize that car insurance can be tailored to your exact driving and car situation, right down to who drives which vehicle and when. For example, you can lower your premium by excluding teen drivers from your high-value car. Getting specific on your policy can ensure you’re getting the best value, even when insuring multiple cars.
Sharing cars with other drivers may be convenient, but what about sharing an insurance policy? Typically, joint policies offer savings along with a one-stop-shop for managing coverage. There are several ways to make sure all cars and drivers are insured before getting on the road.
Co-owners must have legal ownership of the car with their names on the title, such as in the case of a married couple. You can identify a co-owner as another named insured or additional insured on the policy. Adding as an additional insured applies to those not living in the same household. Having this policy also means that all owners are entitled to a claims payout after an accident. This may be important in certain situations, such as fulfilling insurance requirements for your car loan or lease.
You could stick with one person as the named insured, but add others as listed drivers. You can then assign primary and secondary drivers, depending on who uses the cars most often. This is a good option for couples who live at the same address and occasionally drive the other person’s car. This option allows those who don’t own the vehicle to still get coverage.
At the same time, you’ll save money on high-risk drivers by listing them as secondary drivers. Your insurance will weigh the primary driver’s record more than others listed. Keep in mind that this should be an accurate reflection of who drives the most. In addition, listed drivers should share the same address as the policyholder, such as family members or roommates.
You may want a friend or neighbor to use your car on occasion. Most insurance policies allow permissive use, which means permitted drivers can get coverage when they’ve received permission to use your car. You might consider this option if you lend your car to visiting family members or a caregiver who drives your car for errands during the week.
Before giving permission, review your insurance guidelines. Permissive drivers usually don’t apply to family members living in the same household.
In this case, it’s often more cost-effective to add the high-risk driver to an existing policy, such as a teenage driver. If the person isn’t the main driver, you can list them as a secondary driver to save money. In some cases, excluding the high-risk person from high-value cars could keep insurance rates low as well.
However, consider multiple options based on your situation. For example, a driver needing an SR-22 might find that getting a separate policy lowers costs for the rest of the family.
Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
Michael and Ruth are a married couple with two cars which both of them drive regularly. Since they both own the vehicles and live together, Michael and Ruth need a co-owner insurance policy. After a car accident required Michael to get immediate medical attention, Ruth was still able to file the claim and receive payment without Michael’s involvement.
Say every family member has a car that they drive exclusively. Getting a policy for this scenario is similar to insuring multiple shared cars. Options to consider:
Jason and Sam have a licensed teenager, David, who drives the family sedan regularly. However, the family also owns a Ferrari convertible.
The parents could be listed as co-owners with one of them as the primary driver on each vehicle. David would then be listed as a secondary driver on the sedan. To lower rates, Jason and Sam could exclude David from driving their high-dollar convertible. In addition, the family could let their insurance company know when David is away at college and not driving at all for a discount.
You may find yourself switching out the cars you drive based on a season or vacation period. Consider several options:
Can I cancel car insurance if my car won’t be driven for a while?
You may be tempted to cancel coverage on a car not being used for a certain timeframe. However, this will show up on your history as lapsed coverage, which could put you in the high-risk category when you do need insurance. Consider a seasonal policy or reduced coverage instead.
If you don’t drive your car much, you may not need a regular insurance policy. Consider these options:
Car insurance isn’t one-size-fits-all. You may find yourself with different driver and car situations than other drivers you know. You can find a variety of car insurance options to fit your needs and save money at the same time.
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