Letting some else drive your car might seem harmless, but can cost you thousands of dollars. Letting a driver that is not on your insurance behind the wheel of your car just might skyrocket your insurance. Cheap insurance isn’t always cheap. Many things can lead to your automobile insurance rates to jump. One of the main factors of rate increases is automobile accidents. When an unlisted driver is in the driving seat when an accident occurs you can expect a rate increase even if the accident was not their fault.
Know Your Coverage
According to carinsurance101.com, it is best to check your insurance coverage before you let an unlisted driver behind the wheel of your car. In some states when an unlisted driver is in an accident, the insured driver of the car can choose if they or the unlisted driver uses their own insurance coverage towards a loss. In other states the insurance company will only play the claim if the car was in the hands of a listed driver.
Risks and Rates
Insurance companies don’t like to take risks. Insurance policies are made to follow the car itself, not the driver. Cheap insurance policies don’t allow unlisted drivers to drive the insured car and they don’t get any coverage if they are in a wreck. Insurance companies with good coverage know insured drivers might not always be behind the wheel. Most are flexible and will cover damages done by unlisted drivers even if they were at fault. This does not mean your rate will not change. Rates and risks go hand-in-hand. Loaning your car to an unlisted driver is considered a risk by an insurance company.
Investigations Often Lead To Skyrocketing Rates
Insurance companies usually pull the trigger on an insurance investigation when an unlisted driver is in an accident. The company is usually forced to dive into the driver’s background looking into their driving record and their own insurance coverage. There is usually not a problem unless the investigation finds the unlisted driver has a bad driving record. The insurance company might conclude the insured driver put themselves in a bad position by letting an unlisted driver behind the wheel. This is when your rates will skyrocket. If the driver was at fault, the rates keep climbing.
Invest In Your Future
Unlisted drivers are expensive, but insurance companies know in emergencies and special times, you might not be able to drive your own vehicle. Don’t skimp by on cheap insurance thinking it will always stay cheap. Cheap insurance is called cheap for a reason. Invest in your future and keep your rates at a minimum.