Why Do Household Members Need to Be Listed on My Auto Insurance Policy?

Ever wondered why your auto insurance policy needs to list your parents, children, or other household members even if they have their own cars and insurance? Let's dive into it!

In Massachusetts, you must list all household members who are licensed drivers or anyone who has customary or occasional use of your car, even if they don't live in your household. This includes those already covered by their own insurance policies. While the policy only requires you to list "customary" operators, insurance companies often interpret this term broadly and may require you to list anyone who might use your vehicle. Keep in mind, adding a household member does not always result in an increase or change in premium. If they have their own vehicle and insurance, some insurance companies will allow you to defer the driver to their own policy.

Why is this important?

Listing all household members ensures your insurer knows about every licensed driver in your home. This information helps determine your premiums and coverage eligibility. If you don't list a household member and they get into an accident while driving your vehicle, your insurance company might refuse to pay your claim, even if you were driving at the time of the accident. Yikes!

What happens if you don't list them?

If you don't list household members, carriers can run reports with the registry on your address and see who has licenses in the house. They can add these drivers to your policy. According to?www.mass.gov/doi:

“While reviewing the declarations page of their auto policy, consumers may be surprised to find that a family member or other individual has been added to their auto policy and may question their auto insurance company’s ability to add someone without permission. In Massachusetts, there is no law prohibiting insurance companies from adding drivers to your policy if they have reasonable belief that these individuals should be listed.”?

The risks of not listing household members:

• Denied Claims: If an undisclosed household member drives your car and gets into an accident, your insurance company may refuse to cover the damages. This could leave you personally responsible for costly repairs, medical bills, or legal fees.
• Policy Cancellation: Insurers view inaccurate or incomplete information as a form of misrepresentation. If they discover that you omitted household members, they could cancel your policy altogether.
• Higher Future Premiums: A canceled policy or denied claim can follow you for years, leading to higher premiums or difficulty securing coverage with another insurer.

How to avoid these risks:

Review your auto insurance policy regularly and update it whenever there are changes in your household. Here are some situations that warrant a policy update:

• Make sure anyone who has moved out of the home has updated their license with their new address (they can do so by visiting?www.mass.gov?and searching for "change address on driver's license").
• A teen in your household gets their driver’s license.
• A new roommate moves in.
• A family member with a license returns home.

Accurately listing all household members on your auto insurance policy isn't just about following the rules; it’s about protecting yourself and your loved ones. Ensuring your policy reflects your household’s current situation can save you from costly surprises and provide peace of mind.

Call us today to discuss! We’re here to help you protect what matters most!

Questions on your auto insurance? Contact Paige Souza at (508) 659-8731 or at [email protected]

Learn more about auto insurance FAQ's here: Auto Insurance Solutions - FBinsure

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