Unlisted Driver Protection
If an unlisted driver causes a crash in your car, you could face a financial consequence unless you have Unlisted Driver Protection.
Flexibility to lend your car
If you’d like the flexibility to be able to lend your car occasionally to a driver not listed on your policy, Unlisted Driver Protection can provide peace of mind. It protects you from the Unlisted Driver Accident Premium, which is a financial consequence if an occasional driver, not listed on your policy, causes a crash in your car.
Unlisted Driver Protection can apply to Basic and Optional insurance.
Here are some scenarios where Unlisted Driver Protection would protect you in the event of a crash:
A friend is visiting from another province and uses your car to run an errand
Your neighbour's car won't start and you let them borrow your car to pick up their child from school
You aren't feeling well and a colleague or classmate who lives nearby is driving you home in your car
Before you lend your car to an unlisted driver
Ask the driver to show you that they're in possession of a valid licence. If they don't have one and cause a crash in your car, you could face a financial consequence.
A driver's licence is not valid if it's expired, suspended, cancelled or prohibited.
Drivers you should list
Some types of drivers are excluded from Unlisted Driver Protection. Even if you have the coverage, you could face a financial consequence if a crash is caused by an unlisted driver who is:
A member of the household of the registered owner or principal driver, meaning anyone who ordinarily lives with them. This can be a spouse, family member, friend or roommate, or even a student who is home for holidays or a school break.
An employee of the registered owner or principal driver, who is working full-time, part-time or temporarily
A regular driver of any of your vehicles
Responsible for a previous crash in your vehicle and driving any of your vehicles
If you're not sure if you need to list a driver, talk to your broker.
IMPORTANT: Don't forget to list a member of your household or an employee who becomes a learner driver. Household members and employees who become learner drivers must be listed on your policy if they drive your vehicle or you could face the Unlisted Driver Accident Premium.
What does Unlisted Driver Protection cost?
As long as unlisted drivers do not cause crashes in any of your cars, this protection will be free.
However, if an unlisted driver does cause a crash in your car, and you want to continue to have this protection, then you’ll need to pay for it. This is in addition to the financial consequence you may have to pay.
If more unlisted driver crashes occur, the cost of this protection will continue to increase.
What is the financial consequence if an unlisted driver causes a crash in my car?
If an unlisted driver causes a crash in your car, you could face a financial consequence, called the Unlisted Driver Accident Premium. This will depend on a number of factors, such as where they are licensed and their driving experience and crash history.
The Unlisted Driver Accident Premium will look at how much your Basic and Optional premiums would have been, had you listed the driver who caused the crash. If there is a difference in premium, the financial consequence is 15 times both the Basic premium difference* and the Optional premium difference**.
*to a maximum of $5,000
**to a maximum of two times the Optional premium
If there is no difference in the premium, there would be no consequence to pay. However, you will need to pay for Unlisted Driver Protection at your next renewal, if you want this protection.
Here's an example
Mike lives with Jennifer and uses her car. She chose not to list him as a driver on her policy and he caused a crash using her car. Because Mike is a member of the household, he is excluded from Unlisted Driver Protection.
Jennifer paid $1,800 ($1,200 for her Basic insurance and $600 for her Optional coverages) at her last renewal.
If she had listed Mike, her insurance would have cost $2,100 — a difference of $300.
The Unlisted Driver Accident Premium that Jennifer may have to pay is:
15 x $300 = $4,500
Jennifer's claim will still be paid, but she'll have to pay the $4,500, which accrues interest after 30 days.
If she still wants the Unlisted Driver Protection, she'll have to pay at her next renewal or if she purchases new policy.