Many motorists carry the impression that car insurance attaches to the driver. In fact, it is connected to the car for which it’s issued. Insurance companies use the Vehicle Identification Number of the car to identify it on policies. Therefore, adding other people to an auto insurance policy is logical. Anyone who drives the car on a regular or occasional basis should be listed on that car’s insurance.
How to Add Drivers to Your Car Insurance
If a driver isn’t added at the time the insurance policy is purchased, adding them is a simple process. Contact your insurer by phone or in writing. Be prepared to provide the following information for each driver:
- Marital status
- Number of years as a licensed driver in Canada and/or the United States
- Date the driver received each level of graduated license
- Driver training certification
- Any accidents or insurance claims in the previous 6 years
- Any traffic violations in the previous 3 years
(Source: Understanding Automobile Insurance, FSCO)
Note that, in Ontario, insurance agents and brokers cannot use credit information to determine a driver’s status. They can charge more when a driver has previously let car insurance lapse for non-payment.
How Additional Drivers Affect Car Insurance Pricing
Car insurance premiums build on a number of factors, only some of which have to do with drivers named on the policy. The make, model and year of the car, the neighbourhood in which the owner lives and the regular use of the vehicle all influence insurance price.
Individual data for additional drivers factors into premiums the same way as for the main driver. It’s difficult to pinpoint precisely how an insurance company will price a policy. As long as a company’s policies gain approval from the Financial Services Commission of Ontario, that company can calculate premiums however it chooses. The Ontario auto insurance market is competitive, so each company tries to gain an edge over its competition.
Many insurers apply a discount for insuring multiple drivers, multiple vehicles and for carrying other property and casualty insurance products, such as home insurance.
Additional driver may qualify for discounts themselves. A new driver with a certificate of completion from a driver training program approved by the Ministry of Transportation may receive a discount. Some insurers recognize the responsibility displayed when a student achieves honours level marks and rewards them with a further discount. Other programs, such as usage-based insurance using telematics devices or smart phones bring participation discounts and potential savings later.
Comparison Shopping for Car Insurance
Since there’s such a range of pricing offered by Ontario’s many car insurance providers, any car insurance consumer is likely to benefit from aggressive comparison shopping. Ratelab’s car insurance calculator is here to help. Enter your postal code above to get started. Complete the information for both main and additional drivers. The car insurance calculator searches dozens of providers. The search engines locate the most affordable provider who delivers what you need for your auto insurance policy. With these quotes at hand, you’re in the best position to choose the right coverage. The service is free and you’re under no obligation.