As you purchase or switch auto insurance, does everyone in your household need to be listed on your policy? This is a common question asked by new couples joining their households or families who are adding a new teen driver. There is a common misconception that omitting someone, either a teen driver or a partner, can get you a better rate. However, this is simply not true. Worse yet, this mistake can actually cost you more in premiums. Read below as we answer: “Do all my household members need to be on my auto policy?”
It Is Illegal To Not List Your Household In CO
First and foremost, most states, including Colorado, have ruled that is illegal to not list family members on an auto policy. The repercussions for ignoring this law include misdemeanor charges (or worse) for insurance fraud. In addition, breaking the law almost guarantees that the insurer will deny your claim if you’re in an accident. Needless to say, respecting the law will ensure your family is properly covered.
Claims With Unlisted Drivers Are Often Denied
Legal statutes aside, it is always in your best interest to be truthful and accurate when setting up a policy. Any false information could result in a denied claim, especially when an unlisted driver gets in an accident involving your personal vehicle. If a claim is denied for these reasons, you could find yourself responsible not only for accident damages but all related medical and legal fees as well. In 2022, the average property damage claim was $6,551 and the average bodily harm claim was $26,501. These costs are just the mean, and in some cases the damages are much higher. The risk of covering these potential costs is not worth leaving drivers off your policy.
Married Or Unmarried, List Together If You Live Together
Today, it is more common for unmarried parties to purchase a home together or rent together, and insurance companies have responded accordingly. If you are both listed on the mortgage or lease, then the policy is structured similar to a married couple. Both people will be on the policy, and your rate will be determined with both parties in mind.
Premiums Are Based On Your Individual Situation
It is never wise to provide incorrect details to your insurance company. They base premiums off of your personalized data, and there is no benefit to misleading your insurer. In fact, you may see higher premiums with incorrect information. Instead, you should ask about additional discounts like multiple driver that make the policy more affordable vs. single driver coverage. If you are married, you can add an additional married discount to a multi-driver policy to maximize your savings.
A Word On Teen Drivers
Without a doubt, the greatest concern surrounding adding a driver to a policy involves new teens who have just received their license. While yes, teen drivers are more expensive to insure than adults, this is no reason to leave them off your policy. First off, you want to ensure your teen is properly covered on the road. In addition, many insurers offer a good student discount as long as the teen maintains a GPA above 3.0. This can be a great motivation for a young driver to keep their grades up, and it helps keep a family policy affordable.
Recap – Do All Household Members Need To Be On My Auto Policy?
As we’ve examined “do all household members need to be on my auto policy,” there is only one answer – absolutely, yes. The risks of breaking CO law and facing claim denial far outweigh any savings in premiums. In fact, adding additional drivers to your auto policy can actually lower the rate. While many parents worry about the rise in premiums from a teen driver, the incentive of a discount for a GPA of 3.0 or better can make a big difference. Still have questions about listing or excluding a driver on your auto policy? Contact Square State Insurance for more info or to start your free quote.
