YOU ASKED US…
Insurance-Canada.ca has been responding to consumer questions for the past six years. "You Asked Us ..." features the answers to some of your most frequently asked questions.
The Question:
Q: My husband and I own three cars. My son is only an occasional driver, but the insurance company wants to rate him as a full driver and charge a much higher premium, even though the cars are registered in my husband's and my name. Is this allowed?
A: Yes, it is allowed, and is common practice among insurers. And while it may seem like a money grab, there is some logic behind the practice. The thinking goes that, if there are three cars and three drivers, each driver must be rated as a principal driver. Since your son, in theory at least, has access to a car at all times, he cannot be rated as an occasional driver. Even though you may control your son's access to the car, if insurance companies did not take this position, sons and daughters everywhere would register their cars in the name of their parents and then claim to be occasional drivers. They'd save money on their insurance, but everyone else would have to pay more to subsidize their higher accident rate.
If you are a long-term client with a good claims record, you may be able to convince your insurer to reconsider its position, but don't count on it.
Other consumer questions & answers
The above is intended as general information only, and does not constitute legal advice. Be sure to check with your insurance representative regarding your specific situation.
Find Insurance
Specialized Providers
Below are links to featured insurance products and services that are specialized or difficult to categorize.
News and Articles
- Debris removal gets underway in Lytton as one-year anniversary of BC wildfire approaches
- Allstate reminds you to wait until after your trip to post that vacation selfie
- Enhanced Insurance Protection Available to Canola Farmers This Spring
- Social pressures are prevent Canadians from securing their financial futures
- Severe Weather in 2021 Caused $2.1 Billion in Insured Damage
- Canadian insured losses from catastrophic events exceed CAN $2 billion in 2021
- The Impacts of a Changing Climate: Canada’s Top Ten Weather Stories of 2021
- Protecting Canada’s Coastal Communities: Intact Centre for Climate Adaptation
- Insurance Bureau of Canada Statement: Speech from the Throne
- IBC’s top 10 tips to reduce insurance premiums