The need for comprehensive insurance for your assets cannot be overemphasized. For your vehicle, it is essential to get car insurance the moment you purchase it since driving exposes it to the possibility of an accident, theft, and many other risks.
In the case of an unfortunate event, it would be better if you have an insurance company that will help in minimizing the loss you would have incurred.
In some circumstances, however, claims are rejected by insurance companies without substantial explanation. One reason can possibly be the issue of having a regular driver.
Here are a few essential tips you need to follow to avoid having your claims rejected.
Who is a Regular Driver?
It is just as the name implies. It doesn’t matter who the original owner of the car is, the regular driver is the one who will be driving the car most often within a given period.
This can be a little complicated if, for instance, you have a sizable family with multiple members who are licensed drivers.
If you have a car which will be used by everyone in the family, it may be hard to decide who the regular driver would be. But you can always know who drives it most of the time and this person will have to be listed as the regular driver.
If you are still confused about this, make sure you speak with your insurance broker directly and he/she will provide you with the right answer to avoid any hassles during the process of applying for an insurance claim.
How Does a Regular Driver Influence the Premium?
First off, you must understand that insurance is a risk not only for you, but the insurance company as well. By agreeing to cover you in the event of an accident, the insurance company is taking over your risk and they have to know the amount of risk they are accepting. They must know who will be driving the vehicle most of the time so that they can estimate the possibility of an accident.
It is well known that young and inexperienced drivers are more likely to be involved in an accident than older and experienced drivers.
Insurance companies assume that for someone who has had his/her license for 2 years or less are prone to being in an accident compared to someone who has been a licensed driver for 20 years.
You are required to provide the insurance company with the correct information so that they know what amount in Insurance premiums should be paid.
Implications of Naming the Wrong Person
Trust plays an important role in insurance and your insurance companies expect that you will provide them with the correct information. If you present the wrong information, they will generally assume it is intentional and this can offten affect your claim's outcome.
Some people often put the name of the wrong person as the regular driver to reduce the amount of premium they have to pay. Since younger drivers will definitely pay higher premiums, some parents intentionally provide their names as the regular drivers even when a car is being used primarily by their children.
Though this might help them pay a lower premium, it will backfire when it comes to making claims. When the insurance company finally finds out that the wrong name was entered for the regular driver, they reserve the right to deny the claims partly or outright.
They will always confirm the regular driver as part of the validation process and you may not get your benefit if they notice that you were being dishonest with the information.
Get A Free Broker or Get A Quote - Click Here
Does it Imply that Another Person May Never Drive Your Car?
Of course, someone else might still drive your car from time to time.
When another person driving your car gets in an accident, you can still make and receive your claims as long as the driver was in the right condition to drive.
The driver has to have the right license type for the vehicle in question and must not be under the influence of any substance that could affect his/her driving ability. It also means that you should trust that these drivers must not get easily distracted when driving.
Depending on the provisions of your policy, you may have to pay additional excesses. There are some insurance companies that will want you to give a list of people that may be driving the vehicle, so make sure you give them the right information.
The Best Strategy is to be Honest
As it has been mentioned before, trust is essential in insurance and there is no point in trying to cut corners with something as complicated and as valuable as insurance. If you get your daughter or son a car and want to get it covered, add their name as the regular driver.
The premium may be more, but it is essential to take care of the risk you are being covered for. There is another advantage to this: your child will build his/her insurance history that will eventually lead to a better insurance score that will affect many other policies in the future.
Update Your Insurance Policy when Needed
It is essential to update your policy whenever there is a need for that. If you have decided to leave a car for your spouse or child permanently or for a reasonable period of time, notify your insurance broker of the change.
If you move houses or change jobs that might affect the way you use your car, be sure to notify your insurance company so that your policy will be updated to avoid any surprises in the event where you apply for a claim.