29 April 2010

4 Important Persons Covered by Your Personal Auto Insurance Policy

The usual persons covered by your personal auto insurance policy include the insured, the family members, any driver listed in your policy, and other drivers who have valid reasons or permission to use your insured car.  The coverage, however also varies from the laws of your state and the policy contract you have with your insurer.

When insuring your car, it is important to know who is covered in your policy for you to be aware who can actually drive your car without worrying from insurance liabilities in case something happens.  As you go over asking for online auto insurance quotes, do not forget to inquire about insurance coverage, too.  For most instances though, here are the usual persons covered by your auto insurance policy:

The insured

Being the policy holder, you are the one insured.  You are the foremost person covered by your personal auto policy.  The insured also automatically includes your spouse, if you have any.  The condition is that you and your spouse should be living together in the same residence.

The family members

Your family members who have driver's license can also use your car and be covered by your auto insurance policy.  These include your children, your relatives, and even your in-laws.  Adopted children and stepchildren are also covered in the policy as long as they live with you in the same residence.

Any driver listed in you policy

The third category includes those people who drive your car and whose names are listed in your personal auto insurance policy.  You need to be careful on this one since there some policies that only cover drivers who are listed in your policy.  This is what we call "named insurance".  This type of policy helps you save on insurance premiums because of its limited coverage.  Even if the law in your state says that any driver using your insured car with your knowledge and permission can be covered by your auto insurance, it is always your policy contract that stands out, since it is the agreement being made and contracted by you and the insurance company.  Always pay close attention to the terms and conditions, as well as the nature of your contract to be safe.

Other drivers who have valid reasons and permission to use your insured car

If you applied for an auto insurance other than named insurance, other drivers who have valid reasons and permission to use your insured car is usually included in your coverage.  Even if that person is not listed in your policy, he could still be covered, just as long as he has a driver's license and you gave him permission to use the car.  A good example would be a close friend who may have come for vacation with his family in your place and you offered him your car as their service.  Another is that you ask your next door neighbor to run an important errand for you.  These are just some of the common instances. There are many other cases that are being considered by insurers to qualify for your personal auto insurance coverage.

It is always advisable to do a little research on the laws of your state regarding insurance coverage on auto insurance policies.  Aside from that, it is also wise to ask your insurance company agent about this issue and make things clear from time to time or even while applying for an insurance to be certain of your coverage.

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