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Many vehicles | kids moving out | who to cover?

by Alan

I own four cars. Two of them are being driven by my children that do not live with me.

I currently have all the cars covered under one policy with everyone listed as drivers. I do this because their cars are financed in my name and require full coverage.

It is also cheaper for them since I get a discount for multiple cars.

My question is do I have to list them as drivers since they do not reside with me and will they still be covered?


Hello Alan,

I would be very careful with what you are doing. Chances are that those two vehicles will not be covered in a car accident (today), even if your children are listed as drivers!


Because most auto policies extent coverage to family members. But aren’t your children family members? Nope. They are not!

If you read the definitions section (fine print), a family member is a member of the household. A person that lives with you. Therefore, a roommate can be a family member, but your kids might not (if they do no live with you).

What is the effect of this exclusion in your case? If this exclusion is on your policy (which most likely is), it will declare your children not part of the household and therefore the fact that they are “specifically” listed as drivers might not matter.

The way it works is: Declaration gives coverage, but exclusions take it away. So even if they are listed (they have coverage), the later statement can freely take it away.

Why is this?/b>

Underwriters and insurance professionals want you list every driver of your household and every non member of the household to have their own separate policy (more money for the insurance company).

What happens if you do not list them and they get in a car accident?

Insurance companies have figure that one out also You can lend your vehicle to anyone you like, however, if you make the vehicle available for the regular to anyone, the policy probably excludes that type of use. Again, either you have a person living with you in your policy, or the person not living with you gets a separate policy.

Note: The fact that you own the car does not mean that your children cannot have their own policies on their own names insuring your car. States varies greatly on how they treat this type of thing. You have to worry about the concept of insurable interest, please see:

Please contact your agent and explain your concerns. If the agent tells you that they are covered even if they live in a separate household, then make sure to ask for this on writing. Your agent should be able to help you.

Good Luck

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