How much extra does it cost to add someone to an auto insurance policy?
UPDATED: Dec 3, 2014
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Asked December 3, 2014
In order to know the total cost to add someone, you have to know the basics of insurance. Simply put, if you are underwriting a policy, you are looking at their risk. This means the individual rate will be a combination of things such as credit score, driving history, accident history, and etc. It also matters whether or not you are adding an additional car.
Long story short, however, the cost to add an additional person who has a very similar risk profile as yours would be far less than having an additional stand alone policy. This is because you are adding a second (or additional) driver, but not an additional auto. Only one person can drive at a time, so while there is an increase in the risk, you can assume it will not be a significant increase.
Another thing to note is the relationship of the individual. If you are adding a new spouse for example, and you both happen to be roughly the same age, then you can expect that individual to have roughly the same risk profile as you. This means the cost of their insurance will greatly mirror your current cost. By adding a child onto the policy, however, you can expect a significant increase in their cost because of their age and lack of driving experience.
The answer depends, but most times it is far more cost effective to add an existing driver with a similar risk profile to an existing policy than it is to write an additional policy.
Answered February 19, 2016 by Parker2009
Adding someone to an auto insurance policy is usually a quick and simple process. You have to call your insurance company and give them the name and driver license number of the new driver, but they can be added to the policy immediately. If there are any additional costs associated with adding the new person, your insurance company will bill you for the difference on the next billing cycle.
The cost of adding someone to your policy varies by the person, and how they will be using the car. For example, someone with a few tickets on their driving record but only using your truck once to move from one location to another may not cost you anything, but adding the same person as a regular driver might add a substantial amount to your premiums.
Another factor is the age of the driver. People under 25 are automatically considered a high risk driver, so adding a young driver will have a large impact, especially if they will be using the car a majority of the time. Time is the only way to reduce the cost of insuring a young driver, but they can reduce the burden by taking a driver education course and, if they are a student, keeping a B average or better.
It is rare for your car insurance company to request an immediate payment for adding a new driver. Since you already have a policy in place, making changes is easy and does not require any in-person meetings. Any pro-rated billing can be added to your next premium, and the increase will automatically be included in future bills.
Answered December 3, 2014 by Anonymous