Driving instructor insurance is a special type of insurance policy that is meant to provide coverage for driving instructors and the vehicles that they use for their job. Being a driving instructor presents a higher risk, due to obvious reasons. When a driving instructor takes out a student on the road, the chances of getting into an accident – however minor – are higher than when an experienced driver is at the wheel. As such, not all insurance companies like to offer driving instructor insurance policies. In fact, some insurance companies do not carry this product at all, and those that do carry the product usually charge higher premiums and have more requirements.
What usually happens is that insurance companies offer driving instructor insurance on a company-wide basis. That is, companies that offer driving lessons can take out insurance policies for their employees and their entire fleet. In this kind of setup, the insurance policy usually covers the basics – legal liability, theft and loss, accident coverage, and so on. On top of these things, driving instructor insurance will cover the student driver and any damage that may result due to the student driver’s fault. As may be obvious, the student driver will be a generic label, as it can be anyone at any given time.
While driving instructor insurance can be rather expensive, there are options that may lower the cost for a driving school. For example, some insurance companies may offer a tiered structure with incentives. Say a driver goes a year without being involved in any accidents, and then the premiums may be lowered in the following year.