When more than one drivers are likely to drive a vehicle on a regular basis the owner of the vehicle should include them on the policy. This ensures that all the drivers would be able to use the benefits of the policy without any arguments with the insurer in the future. Drivers who are listed on the policies have similar rights as the policyholder. But the drivers who happen to use the car occasionally may not be granted the same rights.
Advantages of Buying Joint Car Insurance Policies
In many cases buying joint policies may be a requirement instead of a choice. When someone is regularly using your car you need to include them in your policy. Also, family members who are over driving age should be included in the policy if they are likely to drive the insured auto. Otherwise, their existence in the household should be disclosed along with their access to the vehicle. For example, youngsters may have own cars and they may not be driving parents’ one. Still, if they are living with you they must be disclosed.
Sometimes, a friend or a partner may be using the car at times and it would be better if they are listed in the policy. In business vehicle insurance policies it may be a good thing to include employees and business partners in the policies as well. Overall, it makes things safer, clearer and comfortable to have joint policies or have others listed in your policy.
Joint policies are normally cheaper than two separate policies. Furthermore, people might have two separate cars and still like to have joint multi-car policies because especially partners can switch cars whenever it is more convenient. When you have one car between two people then it is only logical to have a joint policy.
Even though policies are joint one driver is listed as policyholder and the rest are listed drivers in many cases. Who will be the policyholder can make a difference in the premium charged. Generally it makes sense to buy the policy on the one driver with more mature age and better driving history. Sometimes, a partner with good driving history may help the other with bad driving record to be insured at reasonable cost.
Disadvantages of Joint Automobile Insurance Coverage
Unless drivers are in a traditional marriage (where husband and wife share all the burdens and benefits) or partnership joint policies may create issues from the start and some point in the future. First of all, how the cost would be split between drivers could be an issue since the bad driver’s record would make it harder to get a low premium quote. Nonetheless the costs would probably be cheaper than having two separate policies.
The real problems arise when there is a claim. Even though the policyholder has a clean driving history any accident caused by a listed driver or even for an occasional driver who is not listed in the policy would go down as a claim on the policy and on the records on the policyholder. Suddenly, both parties would have an insurance claim record.
If they are two go their separate ways and buy two separate policies in the future the effects of one claim would almost be double. So, motorists should think carefully when they are co-signing a policy especially for the benefit of a bad driver. Unless they are ready to face the consequences of any accident they should refuse it politely. Also, it can be considered an insurance fraud to buy a joint policy to help a bad driver to get reasonable rates. If you have no intention of using a car you are not supposed to insure it under your name.