Adding drivers to an auto policy?

I have an auto policy with 4 personal vehicles.

I added a person who needs to be able to routinely drive 1 of the the 4 vehicles. Because all 4 vehicles are one policy, adding this person makes the premiums for all the vehicles go up- because naturally, that person could potentially drive any of the vehicles.

My question is: am I allowed to have 2 auto policies? Can I divide up my auto policies, so that one car I'm concerned with is the only policy with that person added? This person doesn't drive my other 3 vehicles, and will not be permitted to drive them.

I feel like I tried to do this a couple years ago and was given a vague answer about why I couldn't. What's the law regarding this? I was going to probe an agent on the phone for answers, but sometimes these kinds of line of inquiry open new cans of worms.

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  • 1 month ago

    Most insurance companies do NOT charge all four vehicles for one new driver.  Typically, the highest rated driver is charged to the highest rated car, and the next highest rated driver to the next highest rated car, etc.  

    Some carriers will allow two separate policies, however, they will make you specifically exclude that person from whichever policy has the cars that you say they do NOT drive.  

    That means, if they drive one of those vehicles, and crack it up, there's NO COVERAGE.  Not for you, not for your car, not for them, not for the people or car they hit.  You will be writing the checks personally, for EVERYTHING.    It's very risky.

    The reason why?  It's not law, it's underwriting.   Because unless you carry the EXACT same limits on both policies with the same carrier, any claim gets "shared" on a pro rata basis between the existing policies.   It turns any simple claim into a total nightmare to adjust and handle.   Also, MOST of the time, that person who doesn't have permission to drive the other three cars, will, at some point, drive one of the other three cars.  Then there's usually an accident involved, and - again - the claim gets ugly, with denials, and fraud, and lawsuits.   It's a PITB for the agent to be involved in a situation like that.  Most agents don't want that HUGE potential E&O lawsuit, and frankly, for the little bit of money you save, their commission on it -  10% usually - means slightly less money for a whole lot more work and aggravation, and a much bigger exposure to a lawsuit from you, for writing crappy coverage.  

    And again, some carriers will do it, some won't.  

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  • 2 months ago

    Insurance companies are not ok with you having a second policy anywhere else...this is a question and if you dont answer correctly, you just committed insurance fraud.  

    Why are you loaning out your car to some random person?  

    There are reasons why auto insurance companies would not accept this...too many to name but the ability to tap other policies for issues unrelated to that policy would be the issue (cause something serious with one car, lawyers bring in the second policy).  Thats the biggest issue...

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  • Judy
    Lv 7
    2 months ago

    There's not a LAW on this, it's the insurance company's policy. When I've been in a similar situation, with multi-vehicle policies, they've only raised the rates on one vehicle. I've also had multiple auto policies with one company. Talk to your agent. You might be misunderstanding the situation.

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  • Anonymous
    2 months ago

    My advice would be to get this person off your policy altogether by selling or gifting them the vehicle.    Do you really want to be in the hot seat if they plow through a red light and paralyze a single mom of an autistic child? 

    I really don't know the answer to your question, but you might consider if it's possible to drop the car from your current policy and get a second policy from another company.   You'd probably lose some discounts. 

    I hope you have a good personal umbrella policy in place.

    ETA:   To answer your question about homeowner's insurance...I own two homes and they are insured at two different companies.   I'd prefer they be insured at the same company, but because I own a certain type of home business I had to go with a different insurer for that home. 

    • Okay, I appreciate your input and advice. Thank you

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  • Kevin
    Lv 4
    2 months ago

    Because they could drive any vehicle they have to be covered. Sell 1 car and let them get their own insurance

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    • Casey Y
      Lv 7
      2 months agoReport

      Actually, when you own 2 homes, one is considered primary and has all of the standard homeowners coverage...the other one is basically the same as a rental policy.  

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