List All Drivers

To List or not to list

I would like to address one of the most common loopholes people try to exploit; not listing 16-year-old drivers. I have heard, “Just don’t tell the insurance company, they will pay” or “I have never listed my kids, and it’s never been a problem” or “It’s too expensive.” Yes, yes, it is, your rate will double, literally double. Here is the thing, with inflation insurance companies have been losing money. So, they have been more difficult to work with, and they have clamping down, and not paying claims they don’t legally have to. So list your drivers, specifically if that person lives in your house, even part-time. In insurance terms even a part-time “resident relative” should be listed, this is because of the special coverage that is provided to them. The bottom line is to list your drivers, all your drivers.

What do I mean by clamping down? Recently, a newly licensed driver hit a school bus. The family covered the car with comprehensive and collision coverage. The newly licensed driver (about 3 weeks after being licensed), hadn’t been added to the policy because friends had advised them it wasn’t necessary. The insurance company paid for the damage to the school bus, but not the family’s car. Why? An unlisted driver. 

Horror Stories

This is not the only story. A borrowed car that is wrecked by an adult daughter. A grandson wrecked a borrowed car at prom.  A coworker borrowed a car and wrecked it. These claims were paid, but in every case, there was a lot of hassle because of unlisted drivers. I am not saying that you need to list people who don’t live in your house who legitimately borrowed your car, but if they have regular access you should. 

What I do

As a guy who sees a lot of claims, I add my kids the same day they get their license (or when they get their permit depending on the company rules), and I am personally listed as a driver on at least one other policy (that is not my own because I have regular access to the vehicle).

Why? Because I strongly believe in the idea that I never want to give a reason to an insurance company that would allow them to deny a claim, and that is the point. You can do what you want, maybe it won’t be an issue, but an insurance policy is a contract of adhesion, which means they make the rules, and you live by them. Under that situation follow the rules and claims go pretty smoothly, don’t and you end up with a horror story.