Do you have to add all members of your house to your auto insurance policy?
The Importance of Adding Returning Household Members as Drivers on Your Auto Insurance Policy
In today’s world, it’s common for family members to move back into the family home. Whether it’s adult children returning after college, parents moving in for care and companionship, or other relatives seeking a temporary or permanent residence, the family household can often expand. While this can be a joyous reunion, there’s an often-overlooked aspect that needs attention: adding them as drivers on your auto insurance.
Why Add Returning Members to Your Auto Insurance?
- Legal Requirement: In many states it’s a legal requirement to inform your insurance company about all household members and regular drivers of a vehicle. If someone is living in your household or someone frequently drives your car, they should be listed on the policy.
- Coverage Assurance: If an unlisted driver gets into an accident, there’s a risk that the insurance company might deny the claim. This could leave you with hefty bills for repairs, medical expenses, and potential legal fees.
- Accurate Risk Assessment: Insurance premiums are calculated based on risk. By informing the insurance company about all drivers, they can assess the risk accurately and provide a policy that truly covers your needs.
Consequences of Not Adding a Driver
- Claim Denial: One of the most immediate consequences of not adding a resident driver to your policy is the potential denial of a claim. If an unlisted driver is driving during an accident, the insurance company might refuse to cover damages. In Maryland, most insurance companies will not pay for collision damage to your vehicle in this scenario.
- Policy Cancellation: Repeated offenses or a significant claim can lead to the insurance company canceling your auto insurance policy altogether. This can make it challenging to find another insurer willing to cover you, especially at a reasonable rate.
- Increased Premiums: If the insurance company discovers an unlisted driver and doesn’t cancel the policy, they might significantly increase your premiums. This adjustment could be retroactive, meaning you could owe a substantial amount for past coverage.
- Legal Implications: Depending on where you live, failing to list a regular driver can be considered insurance fraud. This can lead to potential legal consequences.
- Financial Burden: Without insurance coverage, you’ll be personally responsible for all costs associated with an accident. This includes repairs to your vehicle, the other party’s damages, medical bills, and potential legal fees if you’re sued.
In Conclusion
It might be tempting to save a few dollars on your monthly premium by not listing all drivers. But the potential consequences far outweigh the savings. It’s essential to keep your auto insurance policy up-to-date with all regular drivers in your household.
This will this ensure that you’re covered in the event of an accident. And, it also keeps you compliant with your insurance agreement. So, as your family dynamics change, make sure to give your insurance agent a call. It’s a small step that can save you a world of trouble down the road.
Contact Huff Insurance
If you have any questions about this topic, or any other insurance topic, please give us a call at 410-647-1111. Our team of knowledgeable agents is always available to help you make the best insurance decisions for you and your family. Thank you for considering Huff Insurance. We look forward to working with you soon!
