Cars can be expensive, and getting one for each household member is a pipe dream for some. One day, in a perfect world, everyone will have a car, but in the meantime, joint ownership continues to be the foremost method of vehicle use and ownership for those living together or sharing a car.
So, with drivers legally allowed to co-own cars, that begs the question. Do they also need to co-own car insurance? Such a thing does exist, but it’s not without its limitations. Here is how you can and can’t get car insurance with at least two names on the car’s title.
When Would You Get Car Insurance with Two Names on the Title of a Vehicle?
Having your name on the title of the car is just one step. To receive the full benefits of joint ownership insurance, the people on the title usually have to live together in the same household.
This is often the case for married couples and families. When they have children and become old enough to drive, they would also be added to the policy until they get their own.
Inversely, if the owners of the car’s titles don’t live together and don’t share equal driving responsibility, there can be some discrepancies. This can be the case if a child relocates to school or work.
At that point, they would have to get their insurance policy even if they use the original car occasionally. There are also exclusion forms available that list specific drivers of the vehicle to which coverage will not be extended.
Who Do Insurers Consider in Joint Ownership Auto Insurance Policies?
In the simplest of terms, it’s drivers that live together that insurance companies always consider when underwriting a joint ownership policy. Some insurance companies call it family car insurance since it is primarily families that purchase such a policy. Every driver added to the policy will have their driving record looked at. The primary policyholder’s record will be considered the most.
How Much Does Joint Ownership Auto Insurance Cost?
While having more drivers on a car insurance policy would increase the cost, married couples are known to have lower premiums than those of a single person, mainly because married couples are seen as safer drivers. They’ll need to be sure they will drive their children around as they grow up. These insurance rates are about $116 per month, up to $1,392 a year. That’s slightly less than the average rate of $1,451 annually.
However, it also depends on the insurance company that is underwriting your policy. Everyone has a different formula for calculating insurance rates. Things that can increase the cost of your car insurance are accidents, traffic violations, and several claims within a short period.
What Are The Different Types of Drivers Besides Those on The Car’s Title?
Drivers that are mentioned explicitly on the car’s title are known as listed drivers. The insurance company knows them by name as regular drivers or owners of the vehicle. Listed drivers can’t make any changes to the policy itself. This is the type of car insurance that families use with their cars.
At the same time, there are passive drivers as well. Permissive use insurance allows anyone with the owner’s permission to drive the car to be entitled to all of the policy’s protections. These drivers aren’t listed by name and can even be drivers outside of the household.
What Other Factors Affect The Cost of Car Insurance With Two Names on the Title?
Aside from the people themselves being listed on the car insurance policy, other factors that can influence the cost of your joint ownership insurance are:
- Zipcode - Your location significantly determines how much you pay for car insurance based on crime rates and traffic. The more there is of these, the more you will cost to insure.
- Driver demographics - Who is driving the car plays a role. Determining factors include age, driving history, and marital status.
- The car itself - Your car’s make and model significantly determines your insurance rates. Insurance providers look at safety features, speed capability, and size.
Could you be overpaying for auto insurance? Compare cheap car insurance quotes today with Insurance Navy. Call us at 888-949-6289 or request a free quote online to see how much you could save. If you need further assistance, feel free to stop in at one of our storefronts to speak with an insurance expert in person.
