Your child just got their driver’s license and he or she is begging you to borrow your car(Insurance). What should you do next? Whether it’s your child, a loved one, a family member, or someone you live with who wants to use your car regularly, that person will need to be insured before getting behind the wheel. That’s where occasional driver insurance comes in. Occasional driver insurance is an add-on to your current policy and allows people on it to be covered while driving your vehicle. If you’re unsure whether you should add someone to your car insurance policy, which may even be added, or how it will affect you and your current policy, we’ve done the work to help you decide what makes sense for your situation.
What is the difference between a primary driver and an occasional driver?
The main driver of the police is usually the person who will drive the car the most. This is usually the person who owns the car, although this is not required. If someone else will also drive the car occasionally (as the name suggests), but not as often as the main driver, that person should be listed as an occasional driver in the policy.
Who can be added as an occasional driver?
Anyone with a valid driver’s license who will often drive your car can and should be added to your policy as an occasional driver. On the other hand, if you have a valid driver’s license, don’t own a car, but regularly drive someone else’s car, you should be added as an occasional driver to the owner’s policy.
Depending on the province you live in, all licensed driver’s members of your household will also need to be considered occasional drivers on your policy, unless they have an active insurance policy. But let’s say you have a new driver in your household who only has a learner’s license, it won’t be necessary to add them to your policy as an occasional driver just yet. Once that person gets their driver’s license, you’ll need to look at their insurance options.
When should I add occasional drivers to my policy?
Here’s a general rule you can follow: If you have someone who plans to drive your car regularly (other than yourself), that person will need to be added to your policy as an occasional driver before you get behind the wheel. Remember that adding someone as an occasional driver does not necessarily mean that they must reside in the same household as you (depending on the province). An important factor to consider is how often the person will be driving your car. If, for example, you allow a loved one or trusted neighbor (who has a valid driver’s license) to borrow your car for a day, it won’t be necessary to add them as an occasional driver to your policy. By allowing him to borrow your car, you also offer him your insurance for this period. If something goes wrong with your vehicle while that person is driving it, your insurance will cover it, not theirs.
How does assigning a primary or occasional driver work if:
I’m the main driver, but I don’t use the car regularly?
Every vehicle listed on a policy must be driven by a primary driver, regardless of how it is used and regardless of who owns it. This means that if you are the sole driver of the vehicle, you will still need to be the primary driver, even if you don’t use the vehicle often. If another licensed driver is now using your car more often than you are, your policy will need to reflect this change. The licensed person will become the primary driver and you will transition from primary to occasional driver.
Several people are licensed in my household, but we don’t all use the car?
Although it varies from province to province, the person who drives the most will be considered the primary driver (usually the owner of the car) and other people should be added as occasional drivers, whether they drive the car or not.
The only exception to this rule is if the person listed as the primary cardholder (or the vehicle’s registered owner ) signs an exclusion form. This generally excludes any coverage when the person listed on the policy is driving the vehicle. The exclusion form must be signed by both the excluded driver and the principal driver and must be requested separately by each person you plan to exclude from the policy.
My household has several licensed persons and several insured cars?
Your insurer will need to determine who will be the primary drivers and who will be the occasional drivers. If you have two insured cars and four license holders at home, two of those license holders will be primary drivers and the other two will be considered occasional drivers.
If, on the other hand, you have four insured cars and four licensees, your insurer will usually determine that each licensed driver is the primary driver of at least one vehicle, even if it’s not the one you own. he mainly drives. The insurer will also designate each driver as an occasional driver for the other three vehicles for which the person is not listed as the principal driver.
Remember that every situation is different and certain exceptions should be considered in your policy. Consult an insurance advisor to learn more about your insurance policy.
Will adding occasional drivers to my policy affect the cost of my insurance?
Have you ever asked to add guacamole to your meal? It almost always costs more, doesn’t it? Just as you expect extra charges for adding guacamole, adding an occasional driver to your policy will inevitably incur additional charges. When you add additional members to your policy, you are essentially asking your insurer for extended coverage to protect the additional people who will be using your vehicle. And since the factors are not all the same, your insurer will have to assess the level of risk of each occasional driver. Your insurer will consider many factors, like the number of years the driver got their driver’s license and even their driving history or records, to name a few. Then, your new policy price will reflect the protection needed to adequately insure everyone on your policy, including your occasional drivers.
How can I save money by adding an occasional driver?
When you add occasional drivers to your policy, you may be eligible for different types of discounts depending on the type of drivers you add. Here are some associated rebate scenarios:
- If you add a child who is a new driver and has passed a driving course.
- If you add a child who will be living away from home to attend school, they may be eligible for a student discount.
- If you add your elderly parents who have good driving records, they could be eligible for our free claim bonus.
- If you add a driver who has their own car and insurance policy, and that person is insured by the same insurer as you, you may be eligible for a multi-vehicle discount.
At TD Insurance, we offer over 30 ways to save. If you’re curious about what other discounts might apply to your policy now that you’ve added an occasional driver, talk to a licensed advisor. You can also get a quote. In just three minutes, you can have an idea of what your new policy will look like, including discounts.
How do I add someone to my policy as an occasional driver?
If you need to add someone to your policy as an occasional driver, you must contact your insurer as soon as possible. The sooner you notify your insurer, the sooner they can add the driver to your policy so they’re covered before you get behind the wheel. If you’re a TD Insurance customer, we’ve simplified the process; you might even say it’s as easy as adding guacamole. You can add occasional drivers to your policy through TD MyInsurance or the TD Insurance mobile app. Simply log in, select My Policies, click Add Driver and enter all the necessary information for your occasional driver. If you need help, we have advisors ready to help.
Can I get occasional driver insurance without being added to someone’s policy?
Yes and no; let us explain. What we mean is that you can buy insurance without being added to someone’s policy, but technically it wouldn’t be considered “occasional driver insurance”. If you want to get insurance without being part of someone’s insurance policy, you can consider non-owner driver auto insurance. If you borrow your neighbor’s car more often or rent cars regularly, non-owned driver auto insurance might be a better fit for you. This option is a great alternative that allows you to insure yourself rather than the vehicle you drive. This way you will always be covered no matter what vehicle you are in.
Remember that it is illegal to drive without insurance in Canada, so make sure you and the people you lend your car have the appropriate protection before driving from point A to point B.