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If the child is a lisenced driver living in your household, the insurance company assumes that he will drive the car. It is possible to have an exclusion added to the policy (more likely to be the company's decision after the minor has had 3 or 4 claims) that states the child will not drive it. If you have this exclusion, there is NO COVERAGE IF THE KID IS DRIVING, so don't even let him back it out of the garage. In a nut shell, because they do not believe that the child won't ever drive the car, and actuarial experience bears out that they are right. Odds are that sooner or later most parents will let the child drive the car "just this one time...". As mentioned above, most states allow insurers to exclude an operator from coverage and thereby reduce the premium accordingly, but be aware that if the child is the operator in an accident of significant proportions, your financial life could be profoundly effected. In other words, if he/she seriously injures or kills someone, and you are found liable, well.... let's just say it won't be pretty. Think VERY carefully before selecting this option. If he/she is not living in your household (and has a legal address elsewhere but the car is NOT pricipally kept there), none of the above applies. As long as they are licensed and operating the vehicle with your permission (and do NOT do so on a regular and frequent basis), there would be coverage. You are required to add a child to the policy because almost every policy is a family policy, in that every resident relative is covered to drive your vehicles contractually whether or not they are listed as an operator on the policy. See your Definitions section of the contract for 'insured driver'. What that means is that the company is legally on the hook for paying if they drive or not, so they are deffinitely going to collect the premium for it. A NDE (Named Driver Exclusion) is a possibility, but be warned: these are usually underwriting decisions by the company (We'll nonrenew you unless you sign this NDE for your son who has had 4 accidents in the past 3 years.) so if you ASK for an NDE and one is applied, it will still be considered generally as though the company asked you to have one when you want it to come off. In that the company may NOT WANT to take it off, may have some guidelines (no accidents/tickets in past 3 years for example) for when one can come off.

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โˆ™ 2006-10-19 23:51:18
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Q: Why do you have to add your child to your car insurance policy if they never drive your car?
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Related Questions

Do you have to add your child to your auto insurance policy if they do not live at your address?

In the state of Texas you do not have to list your child on your policy. If living in your home you can enlist a separate policy for that child. If living in another home it is never a requirement to have them on your policy although there are some policies which certain insurance companies write which require the child on your policy while living in your residence.

In New York State can you exclude a spouse from your auto insurance policy if she will never drive due to a lifelong disability?

As long as you let the insurance company know that you are married and the reason she will never drive the vehicle.

Do you have to add your child to your car insurance?

As long as the child is a member of your household they must be listed on your insurance policy as does anyone living in your household or being a driver of any of your vehicles. This is stated on your policy that you agree to list all residents of your household and drivers of your vehicles on your policy. Most insurance companies will allow you to list and then exclude people who have their own insurance and will never driver your vehicles. Just remember that if you exclude a person that anytime they drive your vehicle for any reason there will be no coverage at all if the excluded driver is driving.

Which insurance policy is never primary when the insured has more than one policy?


I had a house fire last year and my insurance company dropped me after the claim Can my girlfriend purchase a homeowners insurance policy and claim that she has never had a canceled policy?

She can buy a new policy all day long and claim she had never had a policy cancel if: 1. She is the only person on the deed to the house. 2. She never had a policy cancel.

Is your car covered by homeowners insurance on their property?

No. Your Car is covered by your Auto Insurance Policy. It is never covered by a homeowners policy no matter whose property it is on.

If an uninsured driver has an accident while driving an insured person's car will that person's insurance rate go up?

== == The insurance company COULD cancel your insurance, because you allowed some body, who was NOT covered on your insurance policy, to drive your car. They COULD also refuse to pay to fix the car, as the driver was UN-INSURED by them. You have no one to blame, other than yourself, for all this trouble. Never allow anyone to drive your car, if they are not NAMED on your insurance policy.

What happens if the sole beneficiary on an insurance policy dies before that person and the policy is never changed?

It goes to the estate

Do you have to add a licensed family member to auto insurance policy?

You usually have the obligation to list all household residents and regular drivers on your insurance policy. If we are talking about your Grandparents who live in another state and never drive your can then no. If it is your sister who lives with you and borrows your car occasionally then yes she must be listed as a driver.

Do you have to add live in boyfriend to car insurance if not driving but licensed?

Most policies state that you have to notify them of all household members and drivers of the vehicle. This is something that you have agreed to do in the insurance contract. Many insurance companies will allow you to exclude the person from your insurance policy if they absolutely do not drive the vehicle. When you sign an exclusion you are agreeing that not only does the person never drive your vehicle but also that if this person does drive for any reason there is no coverage under the policy while he is driving. If you get sick and cannot drive but your boyfriend does and has a wreck they pay nothing. In order for a person to be covered they must be listed on the policy and any premium for them must be paid. Doesn't that sound fair. They are covered only if you pay for them to be covered.

Can coverage on a non-owners auto insurance policy be extended to a company car that I drive?

No, Non Owners often referred to as Named Driver insurance never covers a company vehicle. It is the responsibility of your company to provide insurance for it's employees when driving a company vehicle.

What are the disadvantages of a Modified whole life insurance policy?

A major disadvantage of a modified whole life insurance policy is that you can never change the face value on your policy. Additional coverage would require the purchase of an another policy. Also the growth potential on your policy is limited.

If you remove your dependent child from your auto policy after he has received two speeding tickets will the rate still go up?

you will likely have to 'exclude' this child from your policy....and this means NEVER EVER EVER let him drive if he is excluded...if you do and he's in an accident there will be NO coverage at all for your vehicle or the other parties........

If you and a spouse have different health insurance but have never designated one as primary or secondary could this cause problems when you do designate primary or secondary?

If you have insurance through your employer, and you are the policy holder,(the insurance is in your name) this insurance will be primary for you, and your spouses insurance policy will be secondary. The insurance policy thru your spouse's employer, (your spouse is the policy holder, or the insurance is in their name), this would be primary for your spouse, and your policy would be their secondary. Here's the phamplet from Medicare

How do you find out what happened to the life insurance policy your grandmother had when she died and your cousin and yourself were beneficiaries but never saw the money?

You should phone the insurance company and ask them about it; make sure you have the insurance policy number on hand, they will need to know.

In NJ if you have a valid drivers license but never drive do you still have to have insurance?

Do you own a vehicle that is driven? If so you would want to have that vehicle insured. Otherwise, no, I see no reason to have auto insurance if you do not own a vehicle and NEVER drive.

I bought a 2007 impala for my daughter in my name. I never drive the car. I want insurance on the car in my daughter's name.?

Contact your agent or policy services dept for the insurance company you have, they will be able to help you if the vehicle is in your name your daughter can be listed as the principle driver, you will likely be on the policy as the owner of course, there shouldn't be any problems.

Does homeowners insurance cover ruined gardens?

Not likely. Never heard of someones garden being covered under a homeowners insurance policy but. To be sure though you might want to review your policy schedule of coverages or ask your Insurance Agent.

What is cashless policy for comprehensive car insurance?

I have never heard of it and I have been an agent for 26 years. I don't believe it is a true insurance term.

If a Life Insurance company goes out of business what happens to the loan you have with them?

Life insurance companies never go out of business. They are merged, purchased, or absorbed by another insurance company who then owned their assets and liaiblities. Any loan you have on a life insurance policy is going to be less than the cash value of the insurance policy so the value is going to exceed the amount you owe. You will want to find the new insurance company who now is responsible for your policy.

Can you get a policy of car insurance to drive your sons car?

The owner of the vehicle must have the insurance in their name. You cannot legally insure something that you do not own. You can be listed as a driver on the policy and therefore can drive the car with no problem. You never want to insure something that you do not own because any benefits cannot be paid to you because you don't own the vehicle and they cannot pay the owner because he doesn't have a contract with the insurance company. I have, under special circumstances made exceptions with permission from the insurance company. If you son was in Iraq for military service for example, I have gotten the insurance company to allow the son to give the father power of attorney over the vehicle by signed and notarized documents. The policy is still written in the son's name as it should be but it allows the father to sign the insurance application and handle the insurance.

Day Insurance: A Smart Way To Save?

Day insurance protects you for just one day. The best tip someone can give you about day insurance is to be prepared. Check with your insurance company about day rates for the people in your house for things such as an automobile day rate. You can never be too careful, or too prepared. By knowing the day rates for all of the drivers in your home you can save money. There's no need to add a child on a policy if they aren't going to be driving. For those special occasions when they do get to drive, add them for a day.

If a life insurance policy is contested how does a judge determine intent if a new beneficiary form was requested but never submitted?

The life insurance policy is a contract. A judge can not determine "intent". Whoever is the named beneficiary is the beneficiary by contract.

Do you have to keep insurance on an unused car?

Not necessarily. If you never drive it you don't have to keep insurance. If you do use it, (at least once a month at best), you are required to have insurance as you have to have insurance anytime you are on the road with a motor vehicle.

Can you be liable if someone was driving your car and he hit a pedestrian walking out of a crosswalk?

It was your car so your insurance will have to pay. Never loan a car out to someone who is not on your insurance policy.