From time to time, you may find yourself in a circumstance where you need to lend another driver your car. This could be a friend, sibling, your children, or even a parent. Driving is marred by many risks, and anyone, whether a primary or occasional driver can get involved in accidents. But what happens if an occasional driver is involved in an accident? Will your insurance provider cater for the liability? 
Luckily, occasional driver insurance protects policyholders in the event of an accident. Despite the added protection, occasional driver insurance can affect your premiums. As such, it is important to understand what the insurance policy entails before purchasing one. Here is a comprehensive guide on occasional driver insurance. If you're looking for more information on a secondary driver, we've written an article here to explain the difference. 

Who is an occasional driver?

An occasional driver is anyone who regularly drives the policy owner’s car. A teenager who uses the car while on school holiday should be listed in the policyholder’s insurance. It is important to note that different provinces have varying regulations about occasional drivers. For instance, every household member who holds a valid driver’s license is mandated to be named as an occasional driver in Alberta, whether they use the car regularly or not. 
If a friend uses your vehicle a few times in a year, you do not need to list them on your auto insurance. Your insurer will provide coverage for them only if they have permission to drive your car. For instance, if your neighbour uses the car to go grocery shopping once or twice, they do not have to be listed as occasional drivers. Also, there is no limit for the number of occasional drivers that you can list to your policy. Occasional driver insurance Ontario laws allow anyone who holds a valid driver’s licence to be listed as an occasional driver. 

What is occasional driver insurance? 

Occasional driver insurance is an extension of auto insurance that provides coverage for named persons in case they are involved in an accident while driving the policy owner’s car. Letting an unnamed person drive your car for an extended period may nullify your claim if an accident occurs. 

What factors affect the price of occasional driver coverage? 

Occasional driver insurance rates differ. However, your rates will increase once you add an occasional driver. This is because each driver carries a different risk level. It is important to get a quote from your insurance provider once you decide to add an occasional driver. Here are some factors that your insurer will consider before determining the price of your premiums: 

• Age- If you are adding young and inexperienced drivers, your insurance rates will be on the higher end. This is because younger drivers, especially teenagers, are at a higher risk of being involved in accidents. Similarly, adding your parents (or other older persons) who are over 70 years old will increase your insurance rates. While they may have good driving skills and experience, they may have a slower reaction to events on the road or have medical conditions that make it more difficult to drive. 
• The number of drivers- As we mentioned, there is no limit for the number of occasional drivers that you can add to your policy. The more the occasional drivers added, the higher the insurance rates. However, it is cheaper to have more occasional drivers than vehicles in a household. 
• Driving record- Want to add your teenager who just caused a serious accident? You may want to think twice. Drivers with bad records are expensive to insure. While you can still add a driver who has a poor record, be ready to pay higher premiums. 
• Driving experience- Adding experienced drivers will cost you less than adding someone who just got their driver’s license. This is because a person with less experience portrays a higher risk to your insurer. 

How can you save on occasional driver insurance rates? 

Adding an occasional driver will have an impact on your insurance rates. However, you can save on your insurance premiums by doing the following:

• Choosing the occasional drivers wisely- While it can be an inconvenience to chauffer your teenager around, it may be more expensive to allow them to drive your vehicle. 
• Consult an advisor before adding occasional drivers- There are many coverages available on the market. And choosing the right one is not as easy as it sounds, so be sure to work with an advisor to help you get the right coverage. The right coverage is an insurance policy that is not only affordable but also one that offers enough.
• Shop around before settling for one insurer- Shopping around helps you compare insurance rates and coverages offered by different insurers. This puts you in the right place to choose affordable insurance while also getting the required coverage. 
• Ask around for discounts- If adding your teenager as an occasional driver, check discounts offered by your insurer. For instance, insurers offer discounts for young persons who have a graduated license as well as those who have completed a recognized training program. And if you are adding an older person, ask for mature discounts, especially if they have a clean driving record. 

What happens if an occasional driver is involved in an accident?

All occasional drivers are covered by your insurance company. As such, the insurance provider will cater to the sustained damages as a result of the accident. However, the insurance company may raise the rates if the occasional driver was at fault.
Also, the person must have a valid driver’s licence and must have not been engaging in illegal activities at the time of the accident, as per occasional driver insurance laws in Ontario. If the occasional driver gets a ticket, they will cater for the repercussions. This means that you may pay towing fees if your teenager gets a ticket. As such, it is important to reinforce safe driving to all occasional drivers. 

What if someone who is not listed as an occasional driver is involved in an accident while driving your car?

If someone who is not listed as an occasional driver is involved in an accident with your car, your insurer will cover the damages. However, you must have granted the person permission to drive your car. Also, they must have valid auto insurance and must have not been engaging in careless driving or driving while impaired.