Who has to be placed on a car insurance policy?
When you are filling out an auto insurance application, you will face the question of who is in your household. You may be thinking that although you live with three other drivers, you are only looking to insure yourself on your vehicle. However, generally, everyone in your household should be listed on your car insurance policy.
Typically, an auto insurance company will then use the information you have given to include drivers on the policy, exclude drivers from the policy or not rate certain people on the policy. All household members should be known to the car insurance company, even if they are not intending to drive your vehicle. This means you need to tell the insurer all licensed drivers that are in your house, including your spouse, teen drivers, roommates, and elderly parents. These people do not necessarily have to be listed as covered drivers, depending on the situation.
Even someone who does not drive your car can be expected to use it on rare occasions. For example, the insurer should know that your roommate may need to drive your vehicle if you have an emergency and cannot drive yourself to the hospital. If the person is listed on your policy and is involved in an accident, the insurance company will have to honor the claim.
In most cases, the insurer will not charge you higher rates for allowing a licensed driver to use your car, but they should know who is driving because of the risk of possible damages or injury. In some cases, if other members in your household have a poor driving history, your rates can increase. If this is the case, you can add the individual as an excluded driver, which means that he or she will not be covered to drive your vehicle in any situation.