Does Swapping Cars Affect Your Car Insurance?


Sometimes my wife and I swap cars. Does affect our separate insurance accounts? 

Partners and spouses who use each other’s cars will have to be listed under each other’s account at their respective insurance companies. Since you each have your own insurance your driving records should not affect each other’s insurance. f you have an accident in someone else’s car your rates could go up even though your company did not have to pay anything. Note that multiple incidents involving your partner’s car could cause his/her insurance company to take adverse action, such as excluding the offending driver. 

My eldest son just got his driver’s permit. Do I need to tell our auto insurance company? 

No. A student permit holder is not a licensed driver. Your son does not need to be added to the policy until he actually takes the written and driving tests and is licensed (he’s still protected, don’t worry). When he does get a proper license, you will have to notify your insurance company for them to update your record. Upon doing so, be sure to ask about all the possible credits he is eligible for, like student discounts and/or driver’s training discounts. Note that this will warrant a substantial increase in your payments, regardless of credit.

I recently became widowed. We have 2 cars, But I only use one. I had an accident. Will this affect the insurance of the other car? 

In the case of multiple car ownership, most insurance companies will surcharge the most expensive car if there is only one driver. Note, however, that some companies may put the charge on the vehicle you have listed as your primary means of transport. Your overall insurance cost would definitely decrease if you got rid of the other vehicle. Be reminded though that getting rid of the other car will cause you to lose multi-car discount, which can be a credit of up to 20% of the premium. Do consider the practicality of owning a spare car in the case that your primary vehicle gets conked out or is involved in an accident. 

I hired someone to drive for me as I am now too old to drive. Will this affect my insurance?

Yes. You should notify your insurance company so they can properly underwrite the account. Always consider the age and experience of your driver. Ask them for proper driving records, which can be retrieved from the DMV. Since you have authorized them to use the car, it still remains as your responsibility. There is no need to add friends and relatives who drive for you on occasion, more so if they have their own insurance.