Who Should Be Listed On My Auto Policy?
By Linda Frania
Knowing who should be listed on your auto policy is just as important as choosing your insurance limits and could very well save you from a major financial sting down the road.
There are two key terms to ask yourself that will help you know who to list on your policy. They are "drivers" and "household members". If someone regularly drives your car and/or lives in your home, they should be listed on your auto policy; this includes children away at school. Now, having answered the who, you’ll want to determine how to list them: Rated, Excluded or Not Licensed.
A Rated driver is one who is permitted to drive the vehicles scheduled on a policy and influences the premium the insurance company will charge. The better the driving record, the better the rate and vice versa. In exchange for the premium, the insurance company promises to pay for damages, in the event of a covered loss, up to the policy limits, less any applicable deductible.
An Excluded driver is one who is not permitted to drive the vehicles scheduled on a policy. In fact, when you exclude a driver from your policy, you are formally telling your insurance company they will not drive your car, ever! In exchange for the exclusion, meaning- the excluded driver will not be covered under any circumstances, their driving record will be excluded and your policy will be rated accordingly.
A Not Licensed driver is anyone who has the knowledge and ability drive a vehicle but does not have an active license. This category typically includes teenage children and adults who have never been licensed, as well as persons who have surrendered their license due to age or illness. Most insurance companies will not charge a premium for your teenager while not licensed or when having a temporary permit, until they either receive their license or become 18 years of age.
Failure to tell your insurance company about all household members and those who regularly drive your car can be costly when they find out, including a premium increase, denial of coverage and policy cancellation. That age-old cliché, ‘honesty is the best policy’, proves itself once again.
We recommend you call your auto insurance agent to learn more about listing drivers on your policy and how they should be listed: rated, excluded or as not licensed. We at Avalon Insurance Group, Inc are available to answer any questions you may have about this topic or any other questions you may have about your policy. Our licensed agents and licensed customer service representatives are ready to help. Call us today at 239-275-3888.