When Should You Add a Driver to Car Insurance in South Carolina? | Davis Insurance Associates

When Should You Add A Driver To Car Insurance In South Carolina?

September 15, 2024, by Brad Davis, CIC

I should have written a blog post about this years ago, it has to be one the most common questions that come up. It can seem confusing, I guess, to know when to add someone to your auto insurance policy. I mean maybe your neighbor told you they pay half as much because their insurance company doesn’t “know” about his teenage drivers yet. Or a family member heard once from an agent in another state that you don’t have to add your children until the insurance company finds out they live there. Trust me, I have heard these and other crazy things a few times. Well, I definitely disagree with the above. To add is to be safe!

Generally, drivers who live at your address and/or regularly operate your vehicle should be added to your auto insurance policy. If you keep it simple, it’s not that complicated. Let’s look a little deeper at who should be listed as a driver on your car insurance and why it is important.

I want to go ahead and say this up front. This is a general guideline – regulations/rules/guidelines/etc. between insurance companies and states vary. Contact your local agent or insurance company if you have any doubts about who should be listed (or a named insured) on your insurance policy.

Also, this blog addresses household members or drivers. There are more considerations if adding a vehicle.

Who Should be Listed as a Driver on Your Auto Insurance?

Here are some things to consider when thinking about who should be on your auto policy in South Carolina:

• Who will drive your vehicle and how often

• Do you co-own a vehicle with anyone

• What is the driver’s relationship to you

• Who of the age 14 or older lives with you

Below are examples of people who typically should be added to your insurance policy:

• In my opinion, spouses should be listed (and be a named insured) 99.99% of the time. I would say 100% of the time, but there are exceptions to almost all rules

• Significant others/partners/financés

• Teen drivers and college students

• Parents or grandparents living in your home

• *Roommates who live with you

• People who regularly drive your vehicle or have regular access to your vehicle (could be a friend or neighbor)

• Anyone of driving age (regardless of licensed or not) that lives with you

• If you are not sure ask your agent or insurance company

*This one seems tricky. I’ve been writing and servicing auto insurance over 20 years. I don’t think I have seen a single time a customer didn’t push back on listing their roommate. The way insurance companies are changing wording on policies now – it is usually best to add them. You don’t want to think about this as insuring your roommate. That’s not what you are doing, you are properly insuring your vehicle so it will likely be covered in the event of a claim. A good insurance agent will try to work with you and the insurance company for a solution that best meets your needs.

Will it Affect My Premium if I Add a Driver to My Car Insurance?

The answer is maybe. It depends on the characteristics of the person and the company you have your car insurance with.

For instance, many companies do not charge when you add a person with a permit driver’s license.

But what if you add a driver with a regular South Carolina driver’s license? This may increase your premium, especially if they are young or have a not so perfect driving history. However, for a young driver a good student discount or defensive driver training class may be able to offset the difference in premium.

On the other hand, adding an older driver with a great driving record can even lower your auto insurance premium.

I already mentioned this above, but what you don’t want to do is try to hide a driver or potential driver from your insurance company to save on premium. It will probably just hurt you in the long run. The saying, 'penny wise but dollar foolish' comes to mind.

How to Add a Driver to Your Auto Insurance Policy?

First of all, it is really simple. You can contact your agent or the insurance company directly to inquire about it and/or add a driver.

You will need the following information available when adding a driver:

• Full Name (as it appears on their driver’s license)

• Date of Birth

• Date first licensed (for newly licensed drivers) or how long licensed

• Driver’s License Number

• Social Security Number (in some cases)

• Address if different than yours

Tips and Other Considerations When Adding a Driver:

1. CONSIDER INCREASING YOUR COVERAGE - You may want to increase your liability (and other) limits with the additional liability exposure that comes with an extra driver. Rental Reimbursement (or other coverages) may become more important if two drivers are sharing the same vehicle.
   
   
2. Know the driver’s history of violations or accidents before adding them to your policy. This can help you be prepared for the impact they may make to your premium or policy.
   
   
3. Have information and documents ready for any potential discounts such as proof of good grades or a defensive driver’s training certificate.
   
   
4. If you have not already taken advantage of a company’s telematics program, discuss the benefits and details with your agent and consider giving it a try. Many insurance companies offer a telematics program, and it has become much more popular in the last few years. The programs differ, but in a nutshell the insurance company offers lower premiums for good drivers that are willing to share some driving data.
   
   
5. AUTO INSURANCE POLICIES DIFFER IN AS MANY WAYS AS THERE ARE DIFFERENT AUTO INSURANCE COMPANIES. Some companies even have more than one policy filed with their respective state(s), meaning they have multiple policies that have different policy wording (not just different coverages or limits). I mentioned this in another recent blog – the industry should get rid of the term apples to apples. Rarely are two insurance policies the same. Why is this so important? Just one example – I have personally seen a claim denied and the policy cancelled because the insured did not list all of the household drivers (that’s the gist of what happened, but true story).
   
   
6. A little bit of a rabbit hole about how insurance companies classify drivers (again all insurance companies are different) - Some insurance companies rate drivers as either a primary driver, a secondary driver, or an occasional driver. As you would expect, heavier rating is applied to the primary driver and less to the secondary or occasional. But some companies rate the drivers all the same. These companies have filed this type of rating with the state(s) Department of Insurance and are allowed to do this. Sometimes the former works to your benefit and sometimes it’s the latter.

Final Thoughts

Adding a driver to your auto insurance policy in South Carolina is a straightforward process that can prevent many potential issues down the road. By keeping your policy up to date, you’re ensuring that all drivers in your household are properly covered and that you’re complying with state laws. Regularly review your policy, especially when significant life changes occur, to maintain peace of mind and financial security on the road.

Care to see what we can do for your Home, Auto, or Flood Insurance in Myrtle Beach? Please visit ThinkDavisInsurance.com or call (843)213-0000.

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