Who Needs to Be Listed on My Auto Insurance Policy?
Automobile insurance is designed to provide financial protection for the policyholder in the event of a covered accident or incident. There are a wide variety of components to automobile insurance, including liability, comprehensive, collision, uninsured motorist and other add-ons. Some type of liability insurance is required by all 50 states and the District of Columbia.
Other People Are Reading
-
Function
-
An accident may be as simple as a slight fender-bender that only requires a few hundred dollars to repair, but a serious accident that results in major injuries or even death could be financially ruinous to the driver who is at fault. Automobile insurance is designed to pay the costs of repair for property damage, the medical expenses for injuries and funeral expenses and legal compensation in the event of a death.
Identification
-
Listing individuals on an automobile insurance policy specifically identifies these individuals as being covered by the policy. According to GMAC Insurance, any member of the policyholder's household who has the potential to drive the insured vehicle, even if only occasionally, should be listed on the policy.
-
Required Listing
-
The individual who owns the vehicle being insured must be listed on the policy, even if that individual does not drive, because the vehicle's owner is considered to be legally liable for any damages caused by the vehicle. If the vehicle is financed, the company or individual who made the loan must be listed on the insurance policy. Anyone whose name is on the title of the vehicle being insured must be listed on the policy, according to InsureOnTheSpot.com.
Considerations
-
Automobile insurance typically covers the vehicle rather than specific drivers. Individual drivers who are listed on the policy are specifically covered by the policy, but in most cases other members of the policyholder's household are also covered. Covered individuals typically include the spouse of the policyholder, family members, foster children, children who may be away at college but maintain the policyholder's address as their permanent address, and others who borrow the vehicle with the consent of the policyholder. To be covered, the vehicle operator must be a licensed driver.
Exclusions
-
Policyholders may add a policy endorsement which specifically excludes certain individuals from coverage by the automobile policy. This could include a member of the household who has an exceptionally bad driving record, or a history of driving under the influence or while intoxicated, because the cost of covering such a driver could make the policy unaffordable. The excluded driver must not be permitted to operate the vehicle as insurance coverage is not available to her.
-
References
Resources
- Photo Credit Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com
