Why does an insurance company need all the drivers in my house insurance information?

Answer 1

Hiya:

You don't have to actually insure all the people in your household.

If you don't have them added to your policy - then they HAVE TO be excluded.

Here's why:

1 - In any household there is the possibility that any 'of age' drivers could drive your car. If there is a possiblity that any one of age would drive your car - the insurance company needs to be aware of ALL risks. They need to establish a risk profile and set your premium accordingly.

Here are some scenarios for you.

Let's say your brother of 23 lives with you. He drives your car on a regular and frequent basis. He is NOT listed on the policy and gets in an accident while driving your car

Auto policies specifically exclude coverage for any blood relative living in your household that is not listed on the policy.

But here is something else to consider. Let's say you have a friend/neighbor who has keys to your car and has your permission to drive your car whenever they want to. Guess what? Auto policies specifically exclude REGULAR and FRUQUENT drivers of your vehicle unless they are ADDED to the policy.

Yeah. Not so good, huh?

Can you lie?

Nooooooooooooooo. Material misrepresentation on an insurance application is FRAUD. Punishable under the law.

If you don't want to pay for all those people - just tell the agent that. No biggie, really. And tell all those people you DON'T add to the policy that they need to get their own insurance.

Okie dokie?

Goodluck!

~jifr!

Answer 2

Because they want to make sure everyone is insured!

Insurance companies want anyone that lives in the house and has a driver's license, to be on the policy.
The exeption to this rule is if those other driver's already have insurance.
Otherwise, they will be a "named excluded", meaning the policy will not pay for damages caused by those drivers.

Answer 3

because your policy protects you and your family members in the event of a covered loss. If they have their own coverage, their policy may be the primary policy to pay out, say if they are injured. Also, they do not have the right to charge twice for a drivers inexperience or unsafe driving. Therefore, if you list a driver who has their own insurance elsewhere on their own car, they would be called a "deferred" operator, which means they are a permitted operator who is being charged on their own policy based on their record and experience. You may exclude operators on your policy if they will NEVER drive your vehicle-but seriously, they cant drive or you wont be paid if they have an accident. They are listed as excluded operators but you have devulged that they are family members who are licensed in your household. Again, if you have drivers in your household who have their own insurance, give your company their policy information and there will be NO charge on your policy. It is only fair that an insurer collect higher premium if you have a driver with a terrible driving record who uses your vehicle, the chance for loss is higher than if they did not use the car. Dont forget, it is always your option to exclude an operator but you have to disclose all licensed operators in a household or if they drive and have an accident, the company can deny payment of your claim. If a driver in your household is only an occassional operator, you will be charged less of a premium than say, if they are the principal operator of a vehicle registered and insured under someone else's name. You have the right to change the status of drivers on your policy at any time as long as you report it to your insurer. For example if someone in your home has a serious at fault accident or OUI, and your premium increases as a result, you may exclude that driver after that. Also, if someone is just visiting your home who does not reside there permanently, you do not have to list them if it is a rare event-such as a relative staying with you for a weekend. The most important thing to remember with adding drivers to any policy within the family is to give your company the household members policy information so it doesnt cost you anything for them to be on your policy. Hope this helps. As simple as this sounds, review your policy every time a change is made to make sure that the information is current. If a member leaves the household, an adjustment to the premium will be prorated in your favor as of the date that they left. Hope this helps.

Answer 4

Because they all have access to the keys. Some folks try to avoid paying insurance for under 25 drivers or drivers with blots against their record by saying that they won't be allowed to drive. Yet, because the law allows you to let any legal driver drive your car, if that driver is in a crash, insurance is stuck paying. They only get out of it if the driver does not have a valid license. In most cases, that driver lived in the same home as the insured.

Answer 5

Because any one of those people, if they have a license, may borrow and drive your car, and they (the insurance company) would like to evaluate what chance they are taking by giving you insurance with those potential drivers. If they are all insured, no problem, but it there happens to be one that has no insurance and a pocket full of tickets, it will affect your rates. Choose your room mates carefully.

Answer 6

As a safety precaution because people that live in your house with you are more likely to just grab your keys and take your car making anyone that lives with you a liability

Answer 7

Because it is assumed anybody with a license in your household could drive your vehicle.

Answer 8

they are looking to protect themselves from people who might borrow your car. There are strange things done. Sometimes someone with a really bad record will move in with someone with a clean record and drive the clean record persons car (the b/f or g/f from hell and they drive like it)

Answer 9

Because it is likely that they will be driving your car(s). They want to know if you are living with Evil Knevil so they can adjust your rates accordingly.

Answer 10

That is NONE of their business, really. Find a different company, if possible.