Wife and I each have a car and we have auto policy together. Our 16yr son just got his license and will be driving our cars time to time. If we don't add him to our policy and he gets into an accident, will he still be covered? An agent told me that technically he should be since our cars are covered but I wanted to make sure.
Adding my son to our auto policy
- Thread starter jayre
- Start date
WolfpackAgent
Expert
- 91
Any agent who told you this is leaving important stuff out. Most states require a driver to be added to a policy in order to get licensed. At best he may be covered but then you would likely be non-renewed, or else he'll be automatically added to your policy and you'll have to prove he has his own before removing him, or have to sign an exclusion. The claim could also be denied. (An IL agent would give you better information for that state but an accident would raise an army of red flags.)
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Most companies now subscribe to services that match drivers licenses of those in the household to active policy holders. The company will then add them to the policy and request that you prove they have coverage elsewhere to remove the new driver.
Companies were losing premium, but taking the risk. Your son is in the household, add him as occasional driver...and get a new agent.
Companies were losing premium, but taking the risk. Your son is in the household, add him as occasional driver...and get a new agent.
marc82much
Super Genius
- 240
I am not licensed in IL (WI, OH, MI, AZ, TX) but I am sure that is right. Read your policy, under WHO IS AN INSURED, or maybe under definitions. From experience, if you son turns 16 and gets a license and you do not add him (to save money or screw the insurance company out of rightful premium, depending on your outlook) and they pay a claim on him...it will get ugly. Man up, add the kid. If you don't like the rate, shop around BEFORE junior has an tickets or accidents. Some insurers are way better than others on YOUTHFUL DRIVER.
- 2,623
OP wrote a duplicate post this morning:
https://insurance-forums.com/community/threads/add-or-not-add-my-son-to-our-policy.92986/
I refer everybody to my comments about denial and rescission.
I was the claim rep who denied coverage and rescinded policies when our policyholders concealed a material fact from the underwriters.
Yes, the consequences of lying to an insurance company do get ugly.
Oh, it doesn't matter what the policy says about who is covered. Fraud trumps EVERYTHING that the policy says.
https://insurance-forums.com/community/threads/add-or-not-add-my-son-to-our-policy.92986/
I refer everybody to my comments about denial and rescission.
I was the claim rep who denied coverage and rescinded policies when our policyholders concealed a material fact from the underwriters.
Yes, the consequences of lying to an insurance company do get ugly.
Oh, it doesn't matter what the policy says about who is covered. Fraud trumps EVERYTHING that the policy says.
marc82much
Super Genius
- 240
I think you are making an assumption. If I buy a family auto policy and my oldest is 13...three years later he turns 16, gets a license and starts driving. I don't inform my carrier. Is that fraud. Now it would be different if he was already 16, had a license and was driving and I declared on an application something to the contrary.
Also, I thought rescission could only be used when there was a material mis-representation of fact that would have caused the carrier to NOT issue the policy to begin with. For example. I buy auto insurance, put down my DOB as 1-1-1970 when it should have been 1-1-1960. Carrier charges me accordingly. I have an accident. In the investigation, they find the mistake in age. Can they rescind?
- 6,457
Yes. You have deliberately exposed your insurance carrier to financial risk for which they are not being compensated; because you, like every other parent of teenage drivers in America, does not want to pay the premiums for teenage driver insurance.
Your family auto policy is priced based on the vehicles and drivers put into the application. It is not like dental insurance where one family price covers three family members, or five.
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WolfpackAgent
Expert
- 91
We've told customers as far as insurance goes, fraud is the F word.
marc82much
Super Genius
- 240
I would be willing to be that the State Insurance Commissioner would see it differently. Maybe go back and adjust premiums, but the claim would have to be paid.
Another hypothetical...I buy $100,000 life insurance policy. I am asked if I am a smoker. I say no. But, the company accepts smokers and has a rate for them. My rate should be $100. But, I lied and say no. So, they charge me $90. Six months later I get in a car crash and die. Upon investigation, it turns out I was a life long smoker. Did you mean to tell me that an insurance company would try to rescind? I think a first year attorney would get that claim paid.
Different example.... I buy $100,000 life insurance policy. I am asked if I am a smoker. I say no. But, the company accepts smokers and has a rate for them. My rate should be $100. But, I lied and say no. So, they charge me $90. Six months later I have a massive heart attack and die. Upon investigation, it turns out I was a life long smoker. Did you mean to tell me that an insurance company would try to rescind? I think a first year attorney would get that claim paid.
- 6,457
When a parent or guardian does not report a teenage driver to the insurance company, they are not trying to get liability coverage for someone for a lower premium, they are trying to get liability coverage for someone for no premium. Op's policy was priced for two specific drivers and two specific vehicles.
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