
What Happens If You Let an Undeclared Driver Use Your Car?
Many of us have been in a situation where a friend or family member asks to borrow our car. While it might seem harmless, letting someone drive your car who isn’t listed on your insurance policy can have serious consequences. At AEI Insurance Brokerage, we want to make sure you understand the risks involved and how to protect yourself.
What Is an Undeclared Driver?
An undeclared driver is someone who regularly drives your car but isn’t listed on your auto insurance policy. Insurance companies expect you to list all regular drivers on your policy, so if someone not listed on your policy has an accident, it can lead to complications.
How Do Insurance Companies Handle Undeclared Drivers?
- Potential Denial of Coverage: If an undeclared driver gets into an accident, your insurance company might deny coverage for the damages. This means you could be on the hook for paying for the repairs and any other costs out of pocket.
- Increased Premiums: Even if your insurance company does cover the accident, they might raise your premiums afterward. They may see the undeclared driver as a risk, which can lead to higher costs for you.
- Policy Cancellation: In some cases, if an undeclared driver causes a serious accident, your insurance company might cancel your policy altogether. This can make it difficult and expensive to get coverage in the future.
How to Protect Yourself
To avoid these issues, it’s important to list all regular drivers on your insurance policy. This includes anyone who lives with you or drives your car frequently. Here’s what you can do:
- Update Your Policy: If someone new starts driving your car regularly, contact your insurance provider to update your policy. This might lead to a change in your premium, but it’s worth it to ensure you’re properly covered.
- Understand Your Coverage: Not all policies are the same, so make sure you know how your insurance company handles undeclared drivers. Some companies might offer more flexibility than others, but it’s always safer to list all drivers.
- Ask Us for Help: At AEI Insurance Brokerage, we’re here to help you understand your auto insurance policy and make sure you’re fully covered. We can review your policy, help you add drivers, and find the best rates for your situation.
Letting an undeclared driver use your car might seem like no big deal, but it can lead to serious consequences if something goes wrong. By keeping your insurance policy up to date and listing all regular drivers, you can avoid unnecessary risks and ensure that you’re properly protected. If you have any questions about your auto insurance or need help updating your policy, reach out to AEI Insurance Brokerage today. We’re here to make sure you have the coverage you need, no matter where you live.