Cancelled Car Insurance Policy: When an Insurance Company Adds Unauthorised Drivers
Introduction
Have you ever wondered what happens when an insurance company decides to add someone to your car insurance policy without your permission? It's a common misconception that only the policy owner can add or remove drivers. Unfortunately, insurance companies often add household members who may not have your consent, leading to significant issues, including an unwanted cancellation of your car insurance policy. This article explores the reasons behind this action and what steps you can take if it happens to you.
The Role of Household Members in Car Insurance
Car insurance companies take into account every person living in your household when assessing your car insurance risk. This is because they believe that all household members will have access to the car, which in turn, may increase the chances of an insurance claim. Consequently, if an insurance company discovers that a member of your household, particularly one with a poor driving record such as a DUI, is driving your vehicle, they may decide to cancel your policy.
Public Record and Risk Assessment
License information is considered public record. This means that insurers have access to the home address of every licensed driver. When an insurer reviews your policy and finds that a household member is living in the same household and has a poor driving record, they may determine that the risk is too high and therefore cancel your policy, unless you formally exclude that individual.
Insurance Company's Responsibilities vs. Your Responsibilities
Insurance companies do not require your explicit consent to add household members who are at driving age to your car insurance policy. It is your responsibility, as the policy owner, to disclose all household members who are potential drivers or to exclude them if they pose a risk. If you fail to disclose family members who may be driving your car, an underwriter may discover this and add them to your policy without your consent. In cases where these individuals constitute a bad risk, your policy is likely to be cancelled.
Steps to Take if You Discover Unauthorized Drivers
If you have discovered that your car insurance policy has been added to by an unauthorized driver, here are some steps you can take:
Review Your Policy Details Thoroughly: Regularly check your insurance policy coverage to ensure that no unauthorized drivers have been added. This will help you identify changes quickly and address them.
Communicate with the Insurer: Contact your insurance company to report the unauthorized addition. Ask for a policy exclusion to remove the individual from your policy.
Check Your Family's Driving Habits: Discuss with your family members about the importance of informing you of their driving activities. Encourage them to only use the car with your permission.
Update Your Policy: If necessary, update your policy to add or exclude drivers based on your family's current driving arrangements.
Consider a New Provider: If several unauthorized individuals have been added, you may consider switching to a different insurance provider. Some companies may have stricter policies on adding unauthorized drivers, which can prevent such occurrences.
Conclusion
Being aware of the processes involved in adding drivers to your car insurance policy can help prevent unwanted cancellations. It is crucial to keep your insurance company informed of all household members who are potential drivers. By following the above steps, you can ensure that your car insurance policy is under your control and risks are managed effectively. Always keep a close eye on your policy and communicate openly with your insurer to avoid any unpleasant surprises.
Frequently Asked Questions
Q: Can I add or remove drivers from my car insurance policy without the consent of the other party?
A: Typically, you, as the policy owner, have the authority to add or remove drivers from your car insurance policy. However, it is advisable to inform the other party, as they may have an interest in the policy's terms.
Q: What happens if I provide a false driving record to my insurer?
A: Providing false information to your insurer can lead to policy cancellation, fines, and legal action. It is important to provide accurate information to ensure a fair and effective insurance policy.
Q: Can an insurance company add someone to my policy without my knowledge?
A: Yes, insurance companies can add household members to your policy without your explicit consent, especially if they are at driving age. You are responsible for disclosing all relevant information to your insurer.