Ask Anne Marie: What’s the Advantage of Adding a Driver to Your Policy Versus Just Lending Them Your Vehicle?

We often spotlight auto insurance questions sent to Anne Marie Thomas, our resident insurance specialist. Whether it’s a question about passenger responsibilities to the driver or insurance for high-risk drivers, Anne Marie will help you learn more about how car insurance works.

This week’s question is about listing people on your policy who live in your household.

Eric asks:

“You say that auto insurers generally require anyone living in a household with a vehicle is added to that car’s policy as an occasional driver, but you also say the lender's insurance policy will cover the borrower anyway, so what's the advantage to adding that driver to the policy?”

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There are a variety of times when a driver needs to be listed on your auto insurance policy, explains Anne Marie, as part of your agreement with your provider.

“Although you may view it as lending your vehicle to someone you happen to live with, insurers don’t. Instead, it’s presumed that everyone you live with, who has a valid licence, has access to your car even though you may try to limit it. For this reason, when you purchase an auto insurance policy, the contract asks that you list all drivers in your household. It’s not so much an advantage as it is keeping up your end of the contract by providing the necessary information.

“When you lend your vehicle to someone who lives outside of your household, you are not required to add them to your policy if they occasionally borrow your vehicle. However, you need to add them if they are a regular or frequent user of your vehicle. For example, you can lend your truck to a neighbour to do a Home Depot pick up, but if they borrow your truck weekly, you should add them to your policy.”