What if wife does not have insurance on Car as 2nd driver ?
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Posted on: 19-01-05 12:32:52
Hi,
My friend has a Car and insurance.
His wife got licence to drive G2 few months ago.
Now she is driving his car without her name on insurance as a second driver.
I told him to put her name as 2nd driver but he says that my car has insurance so it is not so important to put her as a second driver and by doing this he can save around $400 a year.
Apriciated advise if you have any knowledge regarding this matter..
Thanks
As far as my understanding goes, any person living in the same household and possessing a valid driving licence, HAS to be included in the insurance policy. If not, the insurance company can avoid paying any claims, if arises, on the theory that this fact was not disclosed to them and the person not added to the policy as an occassional driver.
Infact I have last week added my son because of this ruling that insurance company follows.
But then it might be the case with my company - not others!
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Adding a second driver should not make any difference to the insurance premium, unless the driver being added has a proor driving record and/or violations and past claims.
If the wife has recently got a G2 and doesn't have any past violations, claims or bad record then insurance should not go up.
He is taking a big risk letting the wife drive without being insured.
AFAIK, most insurance companies insist that you add all adult members of your household to the policy, including kids over 16.
Does the insurance company even know that he is married?
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Orginally posted by pratickm
Adding a second driver should not make any difference to the insurance premium, unless the driver being added has a proor driving record and/or violations and past claims.
If the wife has recently got a G2 and doesn't have any past violations, claims or bad record then insurance should not go up.
I doubt if that is right Pratik, since the more drivers you have driving the same car, there are more and more chances of the car being on the road more often than with just one driver. That would translate into more risk to the insurance company.
I do not know about other companies, but mine as well as a few that I had shopped around with always used to ask how much is the distance between home and work - the higher the distance, the higher the premium. Similarly, another factor that counts is whether the vehicle is used to commute to work, or is it for family and pleasure use. If commute to work, it would be mean use every day as compared to other used which might not be every day/less mileage etc.
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
It depends on insurance company.
In case of Meloche, if you put your wife name as second driver, they give new driver discount. Infact the insurance premium gets reduced not increased provided your wife should have Insurance Certificate that she can get after attending classes (25hrs) and so on.
Also, other factors for new driver discount is you or your wife should not be in category of high risk driver such as if your wife is 20 years old, do not expect discount but premium will get marginally increased.
Quote:I have never seen anybody's insurance premium increase simply on the basis of adding a spouse to the policy.
Orginally posted by chandresh
I doubt if that is right Pratik, since the more drivers you have driving the same car, there are more and more chances of the car being on the road more often than with just one driver. That would translate into more risk to the insurance company.
In fact, I have found (in my own case as well) that after a spouse is added, the premium usually comes down because your classification changes from a single male to a married couple.
Insurance premiums are usually highest for single males below 25 years of age.
Getting married and/or increase in age usually reduces premiums.
Of course, assuming that the spouse being added does not have a poor driving record, past violations or claims.
When issuing a policy for a car, the agent always asks the percentage of time the vehicle is driven by the primary policy holder and the percentage driven by the spouse.
If you are adding kids with fresh licenses and no driving record, insurance premiums sometimes increase.
Quote:Yes, those are also very important factors and affect the premium.
I do not know about other companies, but mine as well as a few that I had shopped around with always used to ask how much is the distance between home and work - the higher the distance, the higher the premium. Similarly, another factor that counts is whether the vehicle is used to commute to work, or is it for family and pleasure use. If commute to work, it would be mean use every day as compared to other used which might not be every day/less mileage etc.
But assuming other things remaining same, if a person adds a spouse - that action should not per se raise the premiums.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
my insurance company Meloche Monnex charged $15 more over premium when included spouse name. That is affordable rather than going into discussion with insurance company at time of claim.
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