Living in the same house as your roommate might mean that you are allowed to add them to your insurance. The rules of car insurance typically depend on your state and insurance provider. Your insurance provider will ask about the people in your household to determine rates. Even if you do not share a car with your roommate, consider putting them on your auto insurance. A quick trip in your car can always result in an accident. You may have to put your roommate on your car insurance, especially if you plan on letting them borrow your car. This ensures coverage in case of an accident.
You do not have to put someone on your car insurance if they are not using your car. However, there are circumstances where you let your roommate borrow your car. To be on the safe side, put your roommate on your insurance if they are ever going to borrow your car. Check a few solutions below for any alternatives
What If I Don’t Want My Roommate On My Insurance At All?
The best advice is that everyone in your household should be on your insurance. This eliminates a situation where you are liable if your roommate borrows your keys. There may be a case where you do not intend on letting your roommate use your car. In this case, consider adding them as an “excluded driver”. An excluded driver keeps people off of your insurance, even if you live in the same house. In this case, you can be liable if you allow your roommate to drive your car. Be careful, since you take personal liability in this situation. Any damages made to your car while it is in the possession of your roommate are yours to repair.
The circumstances that allow you to add a roommate to the “excluded drivers” list depend on the rules of the state you live in. Your insurance company may also have special rules regarding the situation, so be sure to check with them. Make sure that your insurance company’s rules line up with your intentions, especially since many already require you to add non-drivers as an excluded driver.
Sharing Insurance And Liability
There are other solutions if you choose not to hold full responsibility for your auto insurance. For example, your roommate and you may decide to split the cost of insurance. Consider this a good decision if the two of your driving records are clean, especially if your roommate is a good driver. This solution is budget-friendly and ensures full coverage for both parties.
While this solution is budget-friendly, it does have downsides. If you or your roommate get into an accident, the premium goes up regardless of the situation. Even if they are a good driver, auto insurance skyrockets after an accident.
Take your roommate’s coverage into consideration as well. More than likely, in the event of an accident, your insurance covers your roommate’s damages. If your car insurance fails to cover full damages, however, then their own insurance may cover the costs of the rest of the damages. This solution has the potential to raise the price of your premium, even if you were not involved in an auto accident.
Conclusion
Putting your roommate on your car insurance depends on your situation. Adding household members to your insurance is required in some states, but some insurance companies allow you to add them as an “excluded driver”. If your roommate is going to borrow your car, then put them on your insurance. If you never intend to let them borrow your car, then excluding them from your insurance is up to you. Keep the risks in mind before sharing an auto insurance policy with your roommate.