Can you add relatives to your car insurance?

Policyholders commonly wonder about adding family members to their auto insurance policy.  In the following information, we will discuss the possibility of adding a relative a car insurance policy, explain how it works and discuss the pros and cons. 

The most basic rule for auto insurance is that anyone who is living in the policyholder’s household should be included on the policy.  The insurance company will want to have a list of every driver in the household, so they can charge accordingly.  The reason the insurance company needs this information is to evaluate the risk the original policyholder being in an accident.  In fact, every insurer asks about the driving history of every member of the household. 

Adding other people (even relatives) to the insurance policy may or may not affect the rate of the premium.  Whether or not the rate will increase is dependent on certain factors.  If the individual has been driving for a long period of time and has a flawless (or decent) driving record, there is a significant chance that the premium rate will not increase.  On the other hand, if the driver being added is a new driver, a younger driver or has a flawed driving record, there may be a considerable increase in the premium. 

What factors raise the auto insurance premium?

*Drivers who are under 25 years in age — particularly it they are male.

*Drivers who have had tickets or accidents in the past three years (the increase is based on the amount of tickets or accidents and the severity of the driving infractions on their record, as well).

Moreover, adding a driver who has had serious driving offenses such as, a DUI or has a severely flawed driving record will place the policy in a high-risk category that may make the premium too expensive to pay for, which may lead to a lapse in coverage.  However, if a driver with a poor driving record is living in the household, it is possible to discuss a policy with the insurance company that will exclude that driver from coverage.  The insurance company will be more willing to consider exclusion as an option if the person living in the household has their own vehicle and insurance policy. 

It is important to note that family members who live in the household and drive the policyholder’s vehicle MUST be added to the policy, otherwise it is considered fraud.  In addition, if a claim is made and the non-listed individual was driving, there is a possibility of the claim getting denied and this type of fraudulent activity may result in the insurance policy being cancelled.  In addition, if the policy is cancelled it could lead to difficulty in being insured through other insurance companies and a substantial premium rate increase because of the high-risk status. 

Therefore, it is possible to add a relative (living in the household) to the auto insurance policy and in fact, it is the law.

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