Adding a Driver to Car Insurance
If someone lives with you or regularly uses your vehicle, you should probably name them as an additional driver on your car insurance policy.
Keep in mind, though, that adding someone to your policy will raise your car insurance rates.
When should I add someone to my car insurance?
This can include:
- Family members: Spouses, significant others, children (regardless of age) and parents should be on your policy if they regularly drive a car registered in your name. If you have a child who’s a college student but drives your car when they’re home, make sure they’re on your policy.
- Roommates: Even if a roommate has their own car and insurance, they should be on your policy if they often use your car. If you are boarding someone in your home, ask your car insurance company if they need to be on your policy.
- Employees: If you have a caregiver, housecleaner, babysitter or other employee that uses your car as part of their job, you should add them to your car insurance policy.
The reason to add frequent drivers of your car, even if they have their own insurance, to your policy is that an auto insurance policy is usually attached to the car, not the driver. Adding them to your car insurance makes sure they’re covered up to your policy limits if they get into an accident.
You would be the “named driver” on the policy, in this case, while the added driver would be an “additional driver.” Additional drivers are covered by your policy, but they can’t make changes to the policy like you can.
If you want to add a permit driver to your policy, some insurance companies let them be on a parent’s policy without a rate increase. The increase would occur after the learner driver gets their driver’s license.
When shouldn’t I add someone to my car insurance?
- Family that doesn’t live with you
- Friends
- Visitors
Most states require drivers to have car insurance to drive legally. Make sure that anyone you lend your car to has at least liability car insurance before getting behind the wheel of your car.
How do I add someone to my car insurance?
Your insurance company will probably ask you for certain details about your additional driver before they’ll add them to your policy, including their:
- Name
- Birthdate
- Driver’s license or permit number
- Social Security number
- Gender
- Marital status
- Driving history
If your insurer can’t or won’t cover the driver you want to add to your policy, compare car insurance quotes from several other companies to find one that will. Comparing quotes could also save you money.
How much does it cost to add someone to my car insurance?
- The added driver’s age
- Their driving history
- The state you live in
Adding a young driver to your policy will probably cause your premium to go up the most. This is mostly because teens are seen as high-risk drivers.
For example, the average parent in Nebraska sees their car insurance premium go up 349% after adding a 16-year-old driver to their policy, and 289% after adding an 18-year-old driver.
Note that car insurance rates decrease over time until you’re a senior citizen.
Car insurance rates for a parent with a child
| Company | Parent alone | w/ 16-year-old | w/ 18-year-old |
|---|---|---|---|
| Allstate | $1,111 | $4,820 | $3,209 |
| American Family | $577 | $2,258 | $2,258 |
| Auto-Owners | $494 | $2,562 | $2,159 |
| Farm Bureau | $451 | $3,078 | $2,849 |
| Farmers | $1,820 | $7,062 | $5,851 |
| Farmers Mutual of Nebraska | $281 | $989 | $841 |
| Geico | $415 | $3,029 | $2,651 |
| Nationwide | $830 | $3,936 | $3,725 |
| Progressive | $336 | $1,301 | $1,428 |
| Shelter | $469 | $1,885 | $1,671 |
| USAA* | $391 | $1,279 | $1,244 |
| Average | $652 | $2,927 | $2,535 |
Average rates are based on car insurance policies for typical drivers in Nebraska.
Some insurance companies will charge you a fee to add a driver to your car insurance policy, but even then it should be small. Most of the cost increase you see after adding a driver to your policy will be in your premium.
How can I save money when adding a driver?
Compare quotes
Comparing car insurance quotes from several companies is one of the best ways to save money when adding a new driver, or when making any major changes, to your policy. Car insurance companies look at many different factors when calculating your car insurance quotes. They also weigh those factors differently.
For example, one company may think the driving record of your added driver is higher risk than another company does, and charge you a higher rate to offset the risk of a claim.
Looking at multiple quotes side by side helps you see which company offers the best combination of coverage and price. Just be sure to use the same coverage limits for each company so you can make the most accurate comparison.
Get discounts
Taking advantage of any car insurance discounts you or the added driver qualify for is another way to save money.
For example, many car insurance companies offer good student and safe driving discounts for teens. If your new driver is in school and maintains a 3.0 average or higher, it could save you money.