If a person had the same ins company for several years, and a young driver became of age and got a license?

Question

What happens if you don't report them to the ins company? I don't see anything that says you must. Can't afford the premium.

Answer 1

Your insurance comp would never know about the minor driver. But your state might recover at least liability for any licensed driver

Answer 2

How large are your stones, my friend? Most carriers' auto policies EXCLUDE "youthful drivers." That is, unless you add him or her as a listed driver on the policy. The rub comes if there is an at-fault accident caused by the "youthful driver" and the carrier will most likely deny coverage. That leaves you, as the vehicle owner, personally holding the financial bag. Do you want to risk a suit or judgmentagainst you in the event of an accident that you personally can't pay? Trust me when I say that the injured third party will have no reservations against taking your savings, your boat, your home, and any other assets you have to get the money. A judgment against you will ruin your credit and will, in most states, cause your MVA or DMV to suspend your license until the judgment is paid. Oh, and try to get coverage with another carrier ..... It's unfortunately not a pretty picture and getting the young driver insured is worth it even if just for peace of mind.

Answer 3

First it depends on your state if the insurance company can exclude a driver.  In my state, they CAN'T so I will tell you how it works here.

If you have a licensed young driver in your household and you do not add them to your policy & they have an accident, 2 things usually happen.

First, the company will investigate the accident as they normally would, find out who is at fault.  If they find out your driver is at fault and not on the policy, the claims dept will notify the underwriting dept that there is an undisclosed operator.  The underwriting dept will investigate to see if this person should  have been on the policy (if they are your child living in your household, without a policy of their own, they should have been on your policy, if they didn't live in your household but were a regular operator, they should have been on your policy).  Some situations where they don't need to be - a friend's child that does not live with you & borrowed the car one time, a relative visiting from another state, etc.

If it is determined the driver didn't need to be on your policy, they will pay the claim as appropriate & that would be it.

If it is determined the driver needed to be on your policy, the company can charge you the additional premium it SHOULD have charged you had they known about the driver, ALL the way back to the date the driver was licensed.  So, if the driver had their license for 3 yrs before the accident & the additional premium would have been $1,000 per year, they would charge you that additional premium all at once BEFORE they pay the claim.  Then, when your policy is due for renewal, instead of a renewal policy, you would receive a non-renewal notice stating that the company is refusing to offer you a renewal policy due to an undisclosed operator.  This is a perfectly legal reason for a company to get off of a policy.

Then, the next company you go to you will have to tell them that you were nonrenewed by your last company & you will need to give them the reason why.  They may or may not insure you based on this.  You may have to go to a company like Progressive that takes almost anybody.  Sometimes their rates are great, sometimes they are very high.

Note to the person that says that the driver will get in trouble with the police for driving without insurance.  This is not true.  The police only look to see that the CAR is insured (by looking for a valid ID card).  The ID card only states the named insured on the policy, NOT any drivers.  There could be 10 drivers on a policy or one driver on the policy but the police would NEVER know who they are because it would NOT state that on the ID card.

Personally it is not worth the chance.

If you are in a state that can exclude drivers, it is even worse because you would have to pay out of pocket for all damages to your car, all damages to the other vehicle(s) and all bodily injuries to anyone involved.

It is much cheaper no matter how you look at it to properly insure all drivers in the household and all regular operators of your vehicle.  If you child wants to get their license, they should have a part time job to help pay the additional insurance costs of them being licensed.

Answer 4

1. If the young driver is stopped by the police he is in trouble for driving without insurance since his name isn't on your policy.

2. If he has an accident you will be liable for the entire cost as the insurance company will not cover him.

'3. If the insurance company finds out he is driving they will cancel your policy and you'll be up the proverbial creek trying to get coverage at any price.

4. If you really can't afford the premium then you also can't afford to let him have a license.

Answer 5

In the state of Florida at least, most companies will not "find" the underage driver without you telling them. If they do find the child you need to exclude him/her. Just know that legally they cannot drive the vehicle. If something were to happen the company would not pay the claim if an unlisted person is driving. If it's Florida i can run you a quote, some of ours are reasonable for underage drivers.

Answer 6

Well if you don't and this young driver that has become of age got into an accident in your car he/she would not be covered under your policy.  All persons living in the same household should be on that insurance policy.  The insurance company figures everyone has access to the car they are insuring.  Unless ofcourse 2 or 3 adults have their own separate insurance then each persons insurance would cover each other when driving