Why wasn't my neighbor covered on my insurance when he was driving my car and had an accident?
Every Wednesday I let my neighbor drive my car to the softball field where his league plays since he doesn't own a car. On his way back from the field last week he was involved in an accident. When I tried to file a claim on my insurance to get my car fixed they told me that my neighbor wasn't listed on my policy so they weren't going to fix my vehicle. How can they do this when I pay them every month for coverage?
Auto insurance is all about risk and your company uses these known risks to determine the price of your policy. The higher the risk you pose, the higher your rate will be. If you let someone drive your vehicle on a regular basis then your insurance company expects you to list this person as a driver on your policy to properly rate the risk. This may result in a higher rate, but failure to list this person can cause your company to deny payout of a claim if this person has an accident while driving your vehicle. Avoiding a potentially higher rate by not listing additional drivers is a recipe for disaster and can wind up costing you big time if you are taken to court by someone injured by a non-covered driver operating your vehicle. Not to mention having to fix your own vehicle too.