The day I got my driver’s license, my parents had listed me as an occasional driver on their car insurance policy. When I looked after a family member’s house and drove their car for a few months, they did the same. When I moved in with my roommate and let them occasionally borrow my car to run errands around town, I called my insurer and did it again. These are just a few examples of occasional driver insurance in action.
If you have an occasional driver that you’re looking to get insured, read this article first. It includes answers to the most frequently asked questions Canadians have about this type of car insurance coverage, as well as step-by-step instructions to follow when you’re ready.
What Is Occasional Driver Insurance?
Occasional driver insurance, also referred to as secondary driver insurance, is a type of car insurance coverage designed for those who are not the primary driver of a vehicle, but who still may drive it on occasion.
Is There a Difference Between a Secondary Driver and an Occasional Driver?
No, there is no difference between a secondary driver and an occasional driver. They refer to the same thing: People who are not the primary operators of the vehicle but may use it from time to time.
Here are some examples of people who would be considered occasional drivers:
- Students who return from university or college during summer break who occasionally drive a family vehicle
- Young drivers who recently obtained their driver’s license and drive a family vehicle
- Spouses who occasionally drive each other’s vehicles
- Roommates who occasionally share a vehicle for errands, outings, or other purposes
- Babysitters or nannies who occasionally drive the family’s vehicle
- Relatives who visit from out of town and occasionally borrow a vehicle during their stay
Do You Need to Insure an Occasional Driver?
The simple answer to this question is yes, occasional drivers need to be insured.
For starters, every driver operating a motor vehicle in Canada is legally required to be insured, including occasional drivers. Without it, you may be subjected to significant penalties, including fines (in Ontario up to $50,000) and license suspension.
On top of that, allowing an occasional driver to operate your vehicle uninsured could leave you personally liable for any damages or injuries they cause in an accident. This means you could be financially responsible for covering medical expenses, property damage, legal fees, and other costs resulting from the accident.
Even if the occasional driver in question has their own car insurance, many policies have limitations and exclusions regarding coverage for vehicles that are not listed on that specific policy or are driven by someone other than the policyholder.
Cost of Occasional Driver Insurance
When adding an occasional driver to your car insurance policy, insurers will evaluate the same types of factors they used to calculate your premium, such as driving record and age. This evaluation allows them to determine the cost of insuring the occasional driver.
For example, insuring an occasional driver in their 40s with a clean driving record typically costs less than insuring a 16-year-old with no prior driving experience. This cost difference is a result of how car insurance companies evaluate risk. Statistically, younger and less experienced drivers are more prone to accidents compared to their older, more seasoned counterparts. As such, insurers usually charge more to account for the heightened risk associated with insuring younger drivers who have spent less time behind the wheel.
How To Insure an Occasional Driver
Now that we’ve established the importance of insuring occasional drivers, it’s time to get them listed on your current policy so that you can rest assured knowing that any unforeseen mishaps or accidents will be appropriately covered.
To help you do so, here’s a brief overview of how to insure an occasional driver in Canada:
- Contact your insurance provider or broker: Inform your insurance company that you need to add an occasional driver to your policy. While some companies only do this over the phone, others, like YouSet, have online portals that allow you to do so at your convenience.
- Provide info about the occasional driver: Have details about the occasional driver, including their name, age, driving history, and relationship to you, ready to share with your insurer.
- Review coverage and cost: Ask your insurer about the extent of coverage provided for your occasional driver, the associated costs with adding them to your policy, and the implications adding them will have on your monthly or annual premiums.
- Shop around, if necessary: If your insurer gives you a price that you don’t like, you may wish to shop around. Fortunately, a platform, like YouSet, makes it easy for you to compare prices from multiple insurers all in one place.
- Finalize your decision: Once you’ve chosen whether to insure your occasional driver with your current insurer or opt for a new one, expect to finalize the process by completing any documents from the insurer to formalize the arrangement.
- Provide documentation to the occasional driver: Once your occasional driver is officially insured, you’ll want to tell them where they can find any relevant documents, such as their pink slip.
