Additional Insured vs. Additional Interest: Understanding Your Policy

Additional Insured vs. Additional Interest Explained

Additional insured and additional interest are two different ways someone can be included in your homeowners or auto insurance policy. In simplest terms, an additional insured is covered by your insurance, while an additional interest is not covered. But an additional interest will be notified when you make any policy updates, and additional insured is not. It’s important to keep these similar-sounding insurance terms straight. Let’s look a little closer at additional insured vs additional interest, and how to use them in regards to your insurance policies.

What Is An Additional Insured?

An additional insured is a person who your insurance policy extends coverage to. Their name is not on the policy, and they’re usually not responsible for paying premiums. However, they do receive the benefits of your policy.

Additional Insured On Your Home Insurance

In terms of homeowners insurance, an additional insured is typically a household member. For example, a retired senior living with their daughter and son-in-law would be considered an additional insured. They’re a member of the household that is covered by the home insurance policy, however they are not responsible for paying the premium.

Additional Insured On Your Auto Insurance

Auto insurance works similar to home insurance in terms of additional insured. For example, if your sibling often borrows your car and you’re wanting them to get liability coverage through your auto policy, they would be added as an additional insured.

What Is An Additional Interest?

An additional interest is someone with a financial interest in the property that your insurance policy covers. In other words, they’ve got skin in the game! Your policy doesn’t cover them, however, they will receive updates when changes or updates are made to the policy.

Additional Interest On Your Home Insurance

Additional interest with home insurance typically comes into play with landlords and renters. If you’re renting a home, your landlord may ask you to list them as an additional interest on your policy. This helps them confirm you are consistently insured without giving them the power to adjust your policy or get claim payouts.

Additional Interest On Your Auto Insurance

Additional interest is less common for auto insurance policies. An instance in which it could apply to auto insurance is if you drive a company car. In this case, your company may ask for you to list them as additional interest on your auto policy. This could also apply to a co-owner who doesn’t drive the car. When it comes down to it, the goal is to keep everyone who has financial interest in the vehicle in the loop about the policy.

Additional Insured vs. Additional Interest: Which One Impacts My Premium?

An additional interest on your insurance policy will not impact your premium! On the other hand, an additional insured on your policy will increase your premium slightly.

Unsure of What You Need? Ask The Experts

Insurance can be a giant headache, but TGS Insurance is here to help! Our expert agents are ready to help guide you through your specific coverage needs, and find you the best deal out there. Learning more about your home and auto policies is as easy as a call! Chat with one of our trained agents today to learn more about your home and auto insurance and to ensure you’re getting the best deal possible.