Occasional driver insurance

What is occasional driver insurance?

Occasional driver insurance, or secondary driver insurance, is a type of car insurance coverage for people who aren’t the main drivers of a vehicle. It’s especially useful in families or households with multiple drivers, where not everyone uses the insured car regularly.

For instance, if you’re a teenager driving your parent’s car, you can be covered as an occasional driver. All it takes is being added to the primary driver’s car insurance policy.

Primary driver vs. occasional driver

Primary drivers are typically the people who own the car and hold the insurance policy. They are the people who drive the car most of the time, like commuting to work or school every day.

On the other hand, an occasional or secondary driver uses the car less frequently—less than 50% of the time. For example, if the car owner drives it to work regularly, their child might be the occasional driver, only using the car on weekends to run errands.

Do I need to add someone as an occasional driver?

The short answer is yes—occasional drivers do need to be insured. First off, every driver in Canada, including occasional drivers, is legally required to have insurance. If they aren’t insured, you could face serious penalties, like hefty fines (up to $50,000 in Ontario) and even a licence suspension.

All drivers in Canada are required to have a minimum amount of coverage in third-party liability coverage and accident benefits coverage. Some provinces also require uninsured automobile coverage and direct compensation-property damage coverage.

Additionally, if you let an occasional driver use your vehicle without insurance, you could be held personally responsible for any damages or injuries they cause in an accident. This means you might have to cover medical bills, property damage, legal fees, and other costs out of pocket.

Even if the occasional driver has their own car insurance, their policy might not fully cover them when driving a car that isn’t listed on their personal insurance or when they’re not the policyholder of the vehicle.

Who should you add as an occasional driver?

You don’t need to add someone as an occasional driver unless they start driving your car regularly. For example, if your friend borrows your car once to pick up her child from school and doesn’t need to do it again for a few months, that’s considered “incidental” use. In that case, she doesn’t need to be added to your policy.

However, if this same friend needs to borrow your car every Tuesday and Thursday to pick up her child, that’s “regular” use. In this situation, she would be considered a secondary driver and should be added to your insurance policy. You can add several people to your insurance as occasional drivers, including:

• People who don’t drive the car daily
• Family members
• Friends, neighbours, or roommates
• Your children
• Your spouse or partner

When do I need to add occasional drivers to my policy?

If your children drive your vehicle regularly, they must be added to your insurance policy. However, in Ontario, you don’t need to add young drivers until they have their G2 licence.

You can let your friends borrow your car occasionally without adding them to your policy, as long as they’re licenced drivers. But if they start driving your car regularly, you’ll need to include them on your insurance as soon as they start using your car regularly.

When you add an occasional driver to your insurance, you can rest assured that if they get into an accident while driving, your policy will cover the damages. However, if they’re not on your policy, there’s a risk that your claim could be denied, leaving you, the car owner, responsible for any damages.

Nevertheless, anyone who isn’t listed on your policy can still drive your car with your permission, and your insurance will cover the vehicle no matter who’s behind the wheel.

Examples of occasional drivers

You may need to add someone as an occasional driver if they are:

• Your spouse, who sometimes drives your vehicle
• Your child who just got their licence
• Your college or university student who wants to use your car during their summer break at home
• Your friend, roommate, or neighbour who borrows your car occasionally to run errands
• A family member who is visiting from out of town for an extended stay and wants to borrow your vehicle during their visit

How do I insure an occasional driver on my policy?

Now that we’ve covered why it’s important to add occasional drivers to your insurance policy let’s talk about how to get them listed on your policy so you can feel confident that any accidents or mishaps will be properly covered:

Contact your insurance provider or broker

Reach out to your insurance company to let them know you need to add an occasional driver to your policy. Be ready to share details about the occasional driver, including their name, age, driving history, and their relationship with you.

Ask questions

Ask your insurer about the coverage provided for your occasional driver. Be sure to ask questions like what the costs involved in adding them to your policy are and how this will affect your monthly premiums.

Shop around if needed

If the quote you get isn’t ideal, consider shopping around. This is where having an insurance broker can really help you out, as they can do the insurance shopping for you by comparing several quotes to find you the best one for your needs.

Fill out the paperwork

Once you decide whether to stick with your current insurer or switch to a new one, complete any required paperwork to finalize the process.

Inform your occasional driver of their coverage

After your occasional driver is insured, let them know they’ve been added to your policy and make sure they know where to find important documents, like their pink slip.

How much does occasional driver insurance cost?

When you add someone to your insurance policy, your premium will go up, though how much your car insurance increases depends on your policy and your insurance company. If the person you’re adding has a good driving record, the increase might be small. But if they’re a new or inexperienced driver, or if they have a poor driving history, your rates could go up significantly. Several factors can influence the rate increase, including:

• The person’s driving history
• Any fines or tickets on their record
• Their history as an insured driver
• Their age and driving experience

Adding an occasional driver to your policy can raise your rates, but a broker can help you manage those costs. Insurance companies offer various discounts, and an insurance broker can shop around to find you the best rate and coverage. A BrokerLink broker can work with you to choose the plan that suits you best, and we can help you find discounts and promotions that might lower your rates even more. When all these discounts are combined, it can significantly reduce the premium you’ll need to pay.

When should I not add an occasional driver to my policy?

As the primary driver, anyone you add to your occasional driver insurance policy should be someone you trust and know to be a responsible driver. If you know a driver has had several accidents or violations (tickets) in the past, it’s best not to add them to your occasional driver coverage. Remember, adding an occasional driver to your policy can increase your insurance premiums, and adding someone with a bad driving record can increase them significantly more. Also, if you add someone with a poor driving record and don’t inform your insurance company, they might deny any claims if there’s an accident involving that person.

What happens if the occasional driver gets into an accident?

If you add a person to your car insurance policy and give him or her permission to drive your vehicle occasionally, he or she will be covered by your insurance company if he or she is involved in a vehicle collision. The person must have a valid driver’s licence and not have been engaging in illegal activity when the accident occurred.

Your collision coverage will cover the cost of repairing or replacing your vehicle if the occasional driver was involved in an at-fault collision with another vehicle. Your liability coverage will cover the costs related to any third-party injuries or property damage.

And remember, if the collision is caused by the person who occasionally drives your vehicle, your insurance company could raise your rates. However, if you have accident forgiveness coverage, this can help prevent your rates from increasing.

What if they don’t have occasional driver insurance coverage?

If someone borrowed your car and they are not listed as an occasional driver, your insurance company will still cover the damages if the driver meets the following qualifications:

• The driver must have a Canadian driver’s licence
• You must have given the person permission to drive your vehicle
• The driver must follow the rules of your policy
• The person must not have been driving recklessly or in an impaired or distracted state
• The person must not have been driving your vehicle regularly

What if the occasional driver gets a ticket?

Tickets follow people, not cars. If someone other than you gets a speeding ticket while driving your car, all the repercussions will fall on them.

However, you should still exercise care when choosing who to lend your vehicle to. In Ontario, police can impound your vehicle if you are driving too fast. This means your car would be towed and put in an impound lot. If your friend refuses to reimburse you for these costs, you’ll be on the hook if you want your car back.

Need to add a driver to your policy? BrokerLink can help

If you need to add or remove someone from your policy, or if you have further questions, reach out to BrokerLink. You can contact us by phone, email, or in person at any one of our locations across Canada. Our brokers are happy to answer any insurance-related questions you may have. You can also take advantage of our free car insurance quotes by using our online quote tool today.

Get an auto insurance quote [phone]

FAQs for occasional driver insurance

What is the difference between an occasional driver and a secondary driver?

Nothing. The two terms are often used interchangeably, but they mean the same thing. An occasional driver, also known as a secondary driver, is someone who regularly drives the vehicle but isn’t the one who uses it the most.

Can someone drive my car if they are not on my insurance in Ontario?

Yes. You can let someone borrow your car occasionally without adding them to your policy, as long as they’re licenced drivers. But if they start driving your car regularly, you’ll need to include them on your insurance.

Does an occasional driver need insurance in Canada?

Yes. If you let an occasional driver use your vehicle without insurance, you could be held personally responsible for any damages or injuries they cause in an accident. This means you might have to cover medical bills, property damage, legal fees, and other costs out of pocket.

Will adding a driver increase my insurance?

It’s very likely, though how much it increases depends on your policy and your insurance company. If the person you’re adding has a good driving record, the increase might be small. But if they’re a new or inexperienced driver, or if they have a poor driving history, your rates could go up significantly.

How much is insurance for a secondary driver in Ontario?

How much your insurance coverage will increase depends on several factors, including the secondary driver’s age, driving record, insurance history, and driving experience.

If you have any questions, contact one of our local branches.