Car insurance is a very important item to have. There are many different types of plans available, each with a different cost. The premium each driver will pay depends on several factors closely examined by the car insurance company. Some of these factors include the age of the driver, whether or not the driver is married and the driving record of the main person listed on the policy.
Driver status is another important factor an insurance agent will take into consideration when helping you set up a policy. During this process, a policyholder has the ability to choose who can drive a certain car on their policy and still have car insurance coverage. A person can opt to have other drivers within the household be able to drive the car by simply listing them on the policy. Certain drivers can also be excluded from the list, meaning that they are not allowed to drive the vehicle at all. Doing this may be beneficial if someone has a bad driving record, meaning they come with a higher risk of having to file an accident claim. If an excluded person is driving the car and an accident occurs then the insurance company will not be held liable for any damages.
Excluding certain drivers can help policyholders save money and is a very good idea for households with multiple drivers. Drivers can be insured for one vehicle, but excluded on another. For example, if a child is going to college and will not be driving their parent's vehicle, the parent can exclude them on the policy. Excluding them from the list of eligible drivers for that vehicle can result in lower premiums. When the child returns home, the policyholders can then reinstate them and change their driver status so that they are included on the car insurance policy.
Most insurance companies will assign a certain person to be the main driver of a vehicle. The person with the best driving record is usually assigned as the listed person, with others in the household being secondary drivers. The person that has the best driving record is the one with the least amount of accidents, tickets or other types of moving violations - and is therefore eligible for the lowest car insurance rate. Assigning that person as the main driver of a vehicle is advantageous for the insurance company and the policyholders. It can help the policy holder to save money on their car insurance premiums while still allowing others in the household to drive the vehicle.
Knowing the type of driver statuses you will assign in your household is key when you are establishing your car insurance policy.