Combining Home And Auto Insurance

Yes, you can add auto insurance to your home insurance. In fact, most insurance companies allow you to add another driver to your car insurance policy if that person drives the insured cars regularly or shares the same permanent residence. This is called adding a driver to your insurance policy, and it means they're an insured driver under your policy in case of accidents. You can also share a single car insurance policy with someone if you live with them. This is called sharing a policy, and it typically means that both of your vehicles are covered under one policy.

Adding a non-family member to your auto insurance policy

Yes, you can add a non-family member to your car insurance policy, but this depends on your insurance provider. Most insurance companies will allow you to add a non-family member if they are a roommate, friend, or employee who drives your vehicle often. For example, Allstate will add a roommate who is a non-family member to your auto insurance policy, and Progressive lets people who aren't related but share a home have the same policy.

While most auto insurance policies cover your car regardless of who is driving your vehicle under "permissive use", it's often in your best interest to add a non-family member to your car insurance policy if that individual uses the car often. Adding a non-family member who regularly uses your vehicle helps maintain good faith with your auto insurance company by showing you're not misrepresenting who is driving your car. It can also help prevent future claims from being rejected.

However, it might be difficult to add someone to your auto insurance policy if they don't live in the same house as you, whether they are a family member or not. Each auto insurance company has its own rules, so it's always best to check with your specific insurer if you want to add a non-family member to your policy.

In Ontario, anyone in your household with a valid driver's license should be added to your policy as a secondary driver, even if they have their own car and insurance policy. According to Kelsey Hawke, an insurance expert, your insurance company should be aware of any licensed drivers in your household who don't have a car or insurance policy of their own.

"If they have access to the vehicle, even though maybe they're not going to be using it that often, it's important you notify the insurance company that someone licensed is in the home," says Hawke, so your provider can accurately assess the risk of insuring you.

When adding a regular driver to your car insurance policy, you aren't limited to people who live in your house. The key factor is how often they use your vehicle. An insurance policy's definition of a regular driver is someone who will use your car over a sustained period. For example, you would need to add a friend who borrows your car once every week or two to do groceries, but you wouldn't need to add a neighbour who borrows your car once a year.

When you add a secondary driver, you may see a surcharge on your auto insurance premium, but this varies depending on the insurance company. Some won't raise your premium if the person you're adding has a good driving record, while some may apply a surcharge for any new driver added, regardless of their history. If you're adding someone to your policy who has a past accident or conviction, the policy will be surcharged accordingly.

Adding a driver who doesn't live with you

Whether or not you can add a driver who doesn't live with you to your car insurance policy depends on the insurance company and your state's insurance code. Typically, car insurance covers the vehicle's owner and family members in the same household. Adding a driver who doesn't live with you can be complicated and often comes with additional costs.

In some cases, insurance companies allow you to add immediate family members or someone who regularly drives your vehicle, even if they don't live with you. They might need to have an insurable interest in the car, such as being a co-owner or having your permission to use it regularly. This could include a friend who borrows your car once or twice a week to do groceries, an employee who runs regular errands with your vehicle, or a nanny who uses your car to pick up your children from school.

However, providers usually don't allow you to add a non-related driver who doesn't live with you. If you share each other's cars, it is recommended to consult insurance agents about the best way to insure the vehicles.

It is important to note that adding another driver to your policy can result in a premium adjustment. The increase or decrease in premium depends on various factors such as the driving history and age of the added driver. Younger and inexperienced drivers may cause the premium to increase, while older and more experienced drivers may have a minimal impact.

Adding a driver vs. sharing a policy

Adding a driver to your insurance policy means they are insured under your policy when they drive your car. If they get into an accident, your insurance company is more likely to cover the damage than for an unlisted driver.

Sharing a policy with someone typically means both of your vehicles are covered under one policy. This is usually done when two people share the same permanent residence.

Adding a Driver to Your Policy

You should add any regular drivers of your car to your insurance policy so that damages from accidents are covered. You can also add any drivers that live at your permanent address, and most insurance companies will require this. Some states may allow you to exclude a driver from being covered by the policy.

• Roommates
• Unmarried couples who live together
• Teen or college student drivers
• Friends who drive your car regularly

Sharing a Policy

If you share a policy, both of your vehicles are covered under one policy. This is a good option for people who share the same permanent residence and want to save money by dividing the costs of some auto insurance coverages. However, the other driver's claims or driving history may affect the amount of the car insurance premium.

Adding a car to your insurance policy

Contacting Your Insurance Agent or Company

If you prefer to have your agent or insurance company add the vehicle for you, you can call them or visit their office with your vehicle information and inform them about the changes you want to make to your policy.

Adding the Vehicle Yourself

If your insurance company offers online policy management, you can log in to your policy through their website or mobile app and follow the provided steps to add the vehicle. However, not all companies provide this option, so you may need to contact them directly if they don't allow online policy changes.

Information You'll Need to Provide

Regardless of the method you choose, you'll need to provide some basic information about your new vehicle and your current policy. This includes:

• Vehicle Identification Number (VIN)
• Make, model, and year of your vehicle
• License plate number
• Registered owner's information
• Vehicle safety features
• Type of coverage you want
• Usage estimates
• Leasing information, if applicable

Cost Implications

However, adding a teen driver to your policy along with the vehicle will likely result in a significant increase in your rates. Additionally, if you're adding an inexperienced or high-risk driver, your rates could go up.

Timing Considerations

Most states require you to have insurance before registering your new vehicle. If you're financing or leasing the vehicle, you may also need to show proof of insurance before driving it off the dealership lot. Fortunately, most insurance companies can add a new vehicle to your policy on the same day you purchase it. Some companies also offer a grace period, typically ranging from 24 hours to one month, during which your new car is automatically covered until you officially add it to your policy.

What happens to your auto insurance premium when you add a non-family member to your policy

Yes, it is possible to combine auto and home insurance. Many insurance companies offer bundling options, allowing you to save money and streamline your insurance policies. However, it is essential to carefully review the coverage options and limitations of these bundled plans to ensure they meet your specific needs.

Now, regarding adding a non-family member to your auto insurance policy:

When to Add a Non-Family Member to Your Policy

Firstly, it is important to understand when you need to add a non-family member to your auto insurance policy. Generally, anyone who lives in your household for an extended period and regularly uses your vehicle should be added to your policy as a secondary driver. This includes friends, roommates, or live-in nannies who use your car. Additionally, in certain places like Ontario, anyone in your household with a valid driver's license should be added as a secondary driver, even if they have their own car and insurance policy.

The key factor in determining whether to add someone is how often they use your vehicle. If they borrow your car regularly, such as once every week or two, they should be added to your policy. However, if they only borrow it occasionally, such as once a year, they are typically covered under permissive use and do not need to be listed as a driver.

Impact on Your Auto Insurance Premium

When you add a non-family member as a secondary driver to your auto insurance policy, you may see a surcharge on your premium. However, this varies depending on the insurance company and the driving history of the person being added. Some insurance companies will not raise your premium if the added driver has a clean driving record and a full license. On the other hand, some companies may apply a surcharge for any new driver, regardless of their history. If the added driver has a history of accidents or convictions, you can expect the policy to be surcharged accordingly.

It is important to remember that when you lend your vehicle to a non-family member, you are also lending them your insurance. In some cases, if a secondary driver gets into an accident while driving your car and is later removed from your policy, the record of the accident may remain with you rather than following them to their next policy. Therefore, it is crucial to carefully vet anyone you add to your policy.

Shopping Around for the Best Rates

If adding a non-family member to your policy results in a significant increase in your premium, it is advisable to shop around and compare rates from multiple insurance providers. This is one of the most effective ways to avoid overpaying for insurance. By obtaining quotes from different companies, you can find the most competitive rates for the same level of coverage.

Frequently asked questions