Does Every Person in Your Household Need to Be Listed on Your Insurance Policy?

When completing a car insurance policy application, you may be surprised when asked to list everyone in your household.

Is this true? Do you really have to list everyone in your household on your car insurance policy? Or do you only have to list people who are going to drive your car?

Today, we’re explaining everything you need to know about listing drivers on your insurance policy, including who needs to be listed – and who doesn’t need to be listed – on your policy.

Any Driver Living in Your Household Should Be Listed on Your Policy

insuring everyone in householdGenerally, anyone living in your house should be listed on your policy.

Even if they don’t drive your car regularly, anyone living in your house could drive your car – say, if it’s an emergency situation. Because of this, your insurance company generally wants any licensed driver in your household to be listed on your policy.

This rule applies to drivers of any age. Some elderly relatives may have an expired driver’s license, for example, but they may still need to be listed on your policy if they’re living with you.

For the same reason, any teen drivers living in your household may need to be listed on your car insurance policy. Most teen drivers with a license will need to be added to your policy.

What If My Premiums Go Up When Adding the New Driver?

Adding a new driver to your insurance policy may cause car insurance premiums to rise.

Let’s say your 17-year old son just got his license. He may need to be added as a named driver on your insurance policy. As a teenage male, your son is in the highest risk class for car insurance. That means your car insurance premiums will rise substantially by adding the teen driver to your policy.

Similarly, a roommate or partner with a DUI can cause insurance rates to rise. If someone living in your house has a history of bad driving behavior, then adding that person to your policy can cause insurance rates to rise significantly.

In these situations, you do have an option. You can add the individual as an excluded driver. This means the individual is not permitted to drive your vehicle in any situation. If the excluded individual drives your vehicle and gets into an accident, then your car insurance will refuse to pay the claim.

Do I Need to Add Teen Drivers to My Car Insurance?

If you have a young driver living in your house full-time, then that young driver generally needs to be listed on your policy – regardless of whether or not they plan on driving your vehicle.

You need to add your teen driver to your policy as soon as the driver gets his or her full license (the license that allows them to drive without an adult). Generally, you don’t need to add a teen driver to your insurance if the driver only has a learner’s permit.

Do I Need to Add an Adult Child to My Policy?

Anyone living in your household should be added to your car insurance policy as a named driver. An adult child who still lives with you should be added to your car insurance policy.

Do I Need to Add Parents to My Policy?

Some parents move back in with their adult children as they age. In general, anyone in your household should be listed on your policy – including your parents.

If your parents have their own vehicle and insurance coverage, then adding your parents to your policy will not typically affect your premiums at all.

What About a Neighbor or Friend Who Occasionally Borrows My Car?

Your car insurance will extend to anyone driving your car, assuming that person has your permission to drive your vehicle. If your friend needs to borrow your car for a day, for example, then your car insurance should fully cover your friend based on the terms of your policy.

Don’t forget that when you lend your car to someone, you’re lending your insurance too. If your friend or neighbor causes an accident, then it will affect your car insurance premiums moving forward. Insurance follows the car – not the driver.

Is There Anyone in My Household I Don’t Have to Add?

Generally, your insurance company will want you to add everyone in your household to your car insurance policy – assuming everyone in your household is old enough to drive.

You don’t have to add children to your car insurance policy. However, you will need to add any licensed drivers – so once your child gets a full license, then your child will need to be added to your policy.

You will also need to add roommates, older relatives, parents, spouses, and anyone else living with you. Some insurance companies also require you to add adults without a license to your car insurance policy.

Ultimately, if you’re unsure about adding a driver, we recommend contacting your car insurance company to verify.

Conclusion: Failing to Add Everyone in Your Household Can Lead to Severe Financial Consequences

If you fail to add someone from your household as a named driver on your insurance policy, then you could face severe financial consequences. If the individual drives your car and gets into an accident, then your car insurance company may refuse to cover the claim.

Contact your car insurance company today and verify whether or not you need to add new drivers to your insurance policy.

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