??!CAR INSURANCE NEW JERSeY??
Dec 17th, 2009 by AutoInsGuy
fdsfsdf asked:
my car is already insured under my name, however my son drives it about once every 3 weeks. Do I need to tell the insurance company he is an occasional driver????
i know a state farm agent who has his car insured but his daughter who drives it is uninsured. He said that it’s fine to not tell them about an occasional driver so long as the CAR ITSELF is insured. Is this Correct????
Mark
Here’s the deal: the car is insured, but if you don’t add your son as a driver and he gets into a wreck, the insurance company can charge you retroactively for the premiums that you should have paid for him. So if you think he is a responsible driver and you want to gamble, OK, but if he gets into a wreck, you’ll end up paying for it….a lot.
I work in the industry and if you told me that – I wouldn’t be that worried. The actual exposure to something happening is very little because he only drives the car once a month.
There is some truth to what the other person said though. If your son drives the vehicle, gets into an accident and is not on your policy – this is considered a “lending loss”. The accident would more than likely still be covered but your premium would still increase because your insurance is paying out. Though the accident would not be your fault, it could still follow you around for up to 3 years as a “lending loss”.
**** a quick note but a VERY important one: Almost all insurance companies will cover your son while he drives once a month. BUT, some companies will drop your liability limits to the state minimum when someone NOT on your insurance policy drives the vehicle. This could be bad if you have high liability limits to protect your assets.
I hope this helps! Good luck!
I suggest you locate a nearby car insurance agent to assist you. Since I live in Vermont I can’t recommend an agent in New Jersey, but here is an online resource that can help you.
Good Luck.