by Guest » Mon Aug 09, 2010 06:21 pm
Hi, I currently have myself and my sister on my car's insurance,
and I have heard from few people around me that having multiple drivers on one car is sort of pointless, since when you insure a car, it is insuring the car itself, and as long as the person driving the car is permitted to do so from the insurance holder, the car if covered from any accident caused by that person.
I'm currently in Utah, and I heard above was the case in Virginia from one of my friends. Could someone tell me if it is so in Utah as well? I would remove one of us from the insurance if that's the case as it would be lot less expensive.
I'd appreciate any inputs,
Thank you,
and I have heard from few people around me that having multiple drivers on one car is sort of pointless, since when you insure a car, it is insuring the car itself, and as long as the person driving the car is permitted to do so from the insurance holder, the car if covered from any accident caused by that person.
I'm currently in Utah, and I heard above was the case in Virginia from one of my friends. Could someone tell me if it is so in Utah as well? I would remove one of us from the insurance if that's the case as it would be lot less expensive.
I'd appreciate any inputs,
Thank you,
Posted: Mon Aug 09, 2010 06:47 pm Post Subject:
Are these people in the insurance field? :D
They are incorrect. Risk (which is what the insurance company is collecting a premium on) is based on a driver... not a vehicle. If you have several people using one vehicle then the risk is much greater then one person using it... or at least greater in that one person can be a greater risk then another.
If these people are living in your household then your insurance application may require you to list them. If you don't and you are in an accident your policy could be rescinded (cancelled as never in-force).
I can also tell you that any time an unlisted driver is using your vehicle your policy limits can (and almost always _will_) be reduced down to the state minimum. Utah states that the driver is responsible for the use of the vehicle, not really the owner. So while your policy limits are available to you, those unlisted drivers are only going to get the state minimum coverage.
Insurance companies can also access DMV records which show all the licensed drivers at a certain address. If the insurance company finds out that people living in your household are not insured, they will either non-renew your policy or require that these people be listed on the policy.
Posted: Wed Aug 11, 2010 05:36 am Post Subject:
If the insurance company finds out that people living in your household are not insured, they will either non-renew your policy or require that these people be listed on the policy.
I have a query. Suppose, my carrier finds out that there are a couple of my family members who use my car but aren't listed. Now, they ask me to get those members listed on my policy. Would they also charge a penalty?
Posted: Wed Aug 11, 2010 05:41 am Post Subject:
Would they also charge a penalty?
No, it's one of the two things that I mentioned.Add your comment