Should you add your caregiver to your auto insurance?

When should you add a caregiver to your car insurance?

You should add a caregiver to the policy when they regularly drive the car, live in the home or become the vehicle’s main driver. Occasional trips may be covered under permissive use, but coverage rules differ by insurer. The car owner should confirm the arrangement before the caregiver starts driving.

How the caregiver uses the car	What you should do
Drives the car only occasionally, lives elsewhere	Ask the insurer whether the caregiver is covered as a permissive driver
Drives the car regularly, lives elsewhere	Add the caregiver to your policy
Lives with you and has access to the car	Add the caregiver to your policy, even if they don’t drive often
Is the main person using the car	Have the caregiver listed as the primary driver
Is paid to drive or run errands	Ask whether the policy needs business-use coverage or another endorsement

Your insurer can confirm whether the caregiver needs to be added and what coverage applies. Here are a few common caregiving situations and how car insurance may apply in each.

1. Your great aunt gives up her license, but maintains a car for you to drive her to appointments.

If your aunt owns the car but no longer drives, the insurance company needs to know who will use the vehicle. You will need to be listed as the primary driver because you regularly drive the car. Your aunt should call her insurer before you start driving.

The auto insurance company will use information about you, such as your age, gender, and driving record, to determine the policy premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods., since you are the main driver.

Have your aunt call her car insurance company or agent. An insurer is more likely to accommodate special circumstances for a customer with a good track record with the company.

Read more about the best car insurance companies for seniors.

2. Your sister is laid up for six months with a broken leg, so you move in and use her car to help out.

If you move in and use your sister’s car for several months, you should be added to her auto insurance policy. Permissive use is meant for occasional borrowing, not regular household access. Once you live there and drive the car regularly, the insurer will need your information.

Insurance companies want information on all the licensed drivers who live in the household and have regular access to the car. Neglecting to tell the company about a driver who shares the household could create a sticky situation if that driver crashes the car.

3. Your grandmother asks you to drive his to a monthly bridge game.

Driving your grandmother once a month generally falls under permissive use. She should confirm coverage for permissive use with her insurer. Some policies limit protection for unlisted drivers, even for infrequent trips.

And some policies include tricky exclusions. Cheap car insurance policies, for instance, sometimes exclude everyone but the named drivers, or exclude permissive drivers under 25. In some states, insurers are allowed to include "step-down provisions" in their policies, which reduce the policy's liability limits to the state minimum requirements when permissive drivers are using the car. These types of limitations are more common with nonstandard, inexpensive policies.

4. You move in with your elderly father as a permanent caregiver and take over driving her car.

If you live in the home and are the only driver of the car, you should be on the insurance policy. If your father doesn’t plan to drive again, consider transferring the vehicle to your name and getting your own insurance to avoid potential issues.

The bottom line? It's always worth calling the insurance company if you're going to drive someone else's car as a caregiver to verify coverage.

FAQ: Caregivers and auto insurance

What happens if I do not list a caregiver who drives my car?

If a caregiver drives regularly and you do not list them, your insurer may deny a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. after an accident. The risk is higher if the caregiver lives with you, drives often or is paid for caregiving work.

Can a caregiver use their own car to drive someone to appointments?

Yes, but if they are paid to drive or run errands, they may need business-use coverage or an endorsementAn endorsement is a supplement or change to an insurance policy. It amends the original policy and can increase or decrease coverage, change names or update addresses..

Does non-owner car insurance help caregivers?

Yes. Non-owner car insurance can help if you do not own a car but drive cars you do not own. It provides liability coverage for you as the driver, but it does not replace the car owner’s policy or cover damage to the car.

Should a live-in caregiver be listed on the policy?

Yes. If a caregiver lives in your home and has access to your car, you should tell your insurance company. The insurer will tell you if you need to list or exclude the caregiver under your policy.