Expert: Bennie719 - 1/4/2009

Question
I live in NJ and would like to ask a generic question. Is it ok to have separate car insurance policies (one in my wife's name and one in my name before being married) and can another person that does not live with us be covered under one of the policies as a driver. Can this person be placed as a driver on the policy or do they need their own insurance, if the person borrows the car regularly.

Answer
Hi David,
Yes, it's OK to keep the cars on separate policies but there is quiet a savings by putting them on the same policy.
Most companies will apply a 10%-12% multi-car discount on each car.
If you decide to leave them on separate policies, be sure to add each to the others policy as a driver.  An insurance company will decline any claim presented by a resident who is not a named driver on the policy.

If you have a friend who drives your cars on a regular basis, then he should be added as a driver on the policy with clear insrtuctions to the insurance company that he is not a resident.

I hope that you find this information to be of help.

Your feedback by rating my response will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area