YOU ASK:

If we have car insurance and it covers anyone with permission why list children?

WE ANSWER:

The "any driver" cover has its exclusions, even if that driver has your permission to use the car. The "any driver" clause will only apply to those that:

  • Are not part of your household - someone who's not living in the same address as you
  • Do not have recurring access to the car or who don't get to borrow your car often
  • Are not listed in the registration of the car

Thus, your children should be listed if you want them to drive your car and still be covered.

Legal Requirement

There is a law that requires insurance companies to include all members of the household who have driver's license in the car insurance coverage. It is assumed that those who belong to your household and can drive can take your car anytime and use it, increasing the risk of getting involved in an accident. To protect the insurance company, they require applicants to either list the children or exclude them from the cover.

One Factor of Premiums

The list of drivers is also one of the things that the insurance company will look into when they set premiums. You see, teenagers usually cost more to insure and thus, you need to have them listed in order for the insurance company to know that fact and set the premiums accordingly. The insurance company will look at the driving records (or lack of it) for all the drivers listed and covered in the policy.

Potential Claims Denial

If your children are not listed as "additional insureds" in your policy, if they drive the car and it is involved in an accident, your claim for the damages (and liability) will be denied. In this case, you as the parent will be held responsible for the liability (due to injuries or property damage).

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