Who must be listed on your car insurance policy: household members, regular drivers and exclusions

Who must be listed on your car insurance policy

There is no single national rule. Each insurer writes its own application and underwriting rules, within limits set by your state. In practice, the same groups of people show up on almost every application.

The California Department of Insurance says insurers ask for the names, ages, marital status and license numbers of all drivers in your household, plus their driving records. The Texas Department of Insurance notes that some companies require you to list everyone who lives with you and is of driving age, and that you should tell your company when a family member starts to drive.

Occasional drivers vs regular drivers

Most policies cover you, your family members and people who drive your car with your permission. That last group is why a friend can usually borrow your car for an errand. The NAIC notes that liability coverage generally extends to a licensed driver using your car with permission, but it also warns that some policies say no other person is covered when driving your car. Read yours.

The line between "borrowing" and "regular driver" is where trouble starts. A neighbor who borrows the car now and then is an occasional driver. A partner who drives it to work most days, or a nanny who drives the kids every afternoon, is a regular driver whom the insurer would expect to see on the application. If in doubt, ask your agent and get the answer in writing. For more on how coverage attaches, see does car insurance follow the car or the driver and insuring a car that is not in your name.

Drivers who do not own a car but regularly borrow or rent one may want their own coverage; see non-owner car insurance.

What happens if you leave someone off your policy

Insurers price your policy on who drives. Leaving a high-risk driver off can make the quote cheaper, which is exactly why insurers treat it seriously. Official guides describe the consequences:

New York's guide is direct: disclose all the information an application asks for, even if it means a higher premium. Knowingly giving false information to an insurer can also be treated as insurance fraud under state law. And if your policy is canceled for misrepresentation, you will usually have to disclose that when you apply elsewhere; see what to do if your car insurance is canceled or nonrenewed.

Named driver exclusions: how they work and where they are limited

A named driver exclusion is a written agreement that your policy will not cover a specific person when they drive. People use it when a household member has a poor record or a suspended license and would make the policy unaffordable, and that person will not drive the insured cars. States regulate these exclusions closely, and the details differ.

Michigan's required warning sums up the risk in one line: when the excluded person drives, "all liability coverage is void—no one is insured." If that person crashes your car, you, as the owner, may have to pay the damages yourself.

Before agreeing to an exclusion, check:

• Whether your state allows it for that person, and on what conditions. Your state insurance department can tell you.
• Whether the excluded person has their own policy, which Florida requires.
• Whether your lender or lease requires that every driver be insured.
• How you will keep the car keys away from that person in practice.

Teens and learner's permits

Permit rules are where insurers differ most. The Texas Department of Insurance says you are not legally required to insure a teen with a learner's permit, but you should always tell your insurer when a teen is learning in your car, because otherwise the insurer could deny a claim, void the policy or refuse to renew it. New York's Department of Financial Services says most insurers consider any household member with a learner's permit an insured operator for rating purposes.

Once your teen is licensed, they need to be on the policy before driving alone. Insurers generally rate new drivers higher; in New York, a principal operator licensed less than 3 years gets an inexperienced operator surcharge. The premium factors tool shows which factors move your price, and our post on graduated driver licensing by state shows when teens move from a permit to a license in each state. For older first-time drivers, see car insurance for new drivers, and for drivers under 25, car insurance for young drivers.

How to add or exclude a driver on your policy

1. Gather each driver's details. Full name, date of birth, license number, and any accidents, claims or moving violations in recent years.
2. Call your insurer or agent before the person starts driving. Ask exactly when coverage for the new driver begins.
3. Ask how the driver will be rated and assigned. In Texas, a teen who is the main driver of a car is rated on that car; otherwise insurers base the teen's premium on the family car with the highest rate.
4. Ask about discounts. Good grades, driver education and telematics programs can offset part of the cost for young drivers.
5. If you want an exclusion, sign the insurer's written form. Make sure the excluded person's name appears on your declarations page or an endorsement.
6. Make sure an excluded driver never drives your cars. If they do, you may have no coverage at all for that trip.
7. Check the declarations page. Confirm every driver, vehicle and exclusion is listed correctly; see how to read your declarations page.
8. Update the policy when your household changes. Moves, marriages, divorces, new licenses and children leaving home all change who should be listed.