If you have shopped around for inexpensive auto insurance, you have likely noticed insurance companies require everyone in your household to be listed on your policy. You have to disclose all household members because insurance companies need the information when determining auto insurance quotes. Insurance companies use the information you have listed to include drivers on the policy, exclude drivers from the policy, or not rate certain people on the policy. Without this information, an insurance company cannot accurately determine the risk and the premium for the policy. Listing all household members will ensure accurate auto insurance quotes and adequately determine the cheapest auto insurance.
Included Drivers
In most states, all drivers in your household must be included on an auto insurance policy. This includes your spouse, children, and any other relatives or friends who live with you permanently.Insurance companies define a driver as someone who has the knowledge and ability to drive. Therefore, even a driver who doesn’t have an active license because it has been revoked, suspended, or simply expired still needs to be listed on your policy. Someone who’s never had a license in the United States but has driven in other countries, such as a recent immigrant, should also be on your policy. The reason all drivers, even ones without licenses, need to be included is because they have access to your vehicles. Even if the person never drives your car, they may need to drive in an emergency. If your insurance company finds out you knowingly left a driver off your policy, the company could raise your premiums or cancel your policy. In addition, if a member of your household not listed on your policy gets into an accident driving your vehicle, any claims would be denied due to misrepresentation.
Excluded Drivers
Just because every household member needs to be known to the insurance company, there are situations when household members do not have to be listed as covered drivers. One instance would be if you have a 16-year-old son who does not have a license. The insurance company may require you list him on the policy, but he will not be rated until he is licensed. If your adult children live with you and are licensed drivers, they need to be listed on your policy. If your children do not live with you but still occasionally drive your vehicles, you should inform the insurance company. Some companies may require you to list them as occasional drivers, but it depends on the company’s internal guidelines. In many cases, drivers can also be excluded if you provide proof they have their own insurance. For example, if you live with a roommate, it is likely you would each have your own car insurance policies. Simply provide that information to your insurance company and your roommate can be excluded from your policy. As a general rule, any person who drives in your household and sometimes people outside of your household who drive your vehicles on a regular basis should be listed on your policy. It is best to speak with your car insurance agent about your specific situation and who is required on your policy. If you are looking for inexpensive auto insurance, contact us. Our Dallas, TX, agents can help you determine who should be listed on your policy.