Can a Car Insurance Company Deny a Claim If You Don’t Add Your Child to the Policy?
If you’re a parent with a teenager at home who just got their driver’s license, you might wonder whether you really have to add them to your car insurance policy. After all, insurance rates can jump significantly when a new, inexperienced driver is added. But what happens if you don’t add them? Can your car insurance company deny a claim because of that?
The short answer is yes—your insurance company can deny a claim if you intentionally fail to list a driver in your household. In fact, denying claims for this reason has actually become much more common. In many cases, parents forget or don’t think to add the new driver. This is understandable. Insurance is not necessarily front of mind for many people. The omission to add the new driver can be very innocent. Here are reasons why the car insurance company may elect to deny a car insurance claim.
Why Insurance Companies Require You to List All Household Drivers
Car insurance is based on risk. When you apply for a policy, the insurance company uses the information you provide to calculate the likelihood of a claim being filed—rates are set your accordingly.
One key piece of information is who has regular access to your vehicles. Most insurance policies require you to list all licensed drivers in your household, especially those who live with you full time, like your children.
If a child in your home has a driver’s license and access to your car, your insurance company expects them to be listed on your policy—either as a covered driver or explicitly excluded.
Yes, young drivers are expensive on your car insurance. Statistically, drivers aged 16 to 20 are much more likely to be involved in an accident than any other age range.
In 2015, Progressive Insurance determined the 15% of all of their accidents involved drivers that were not listed on the car insurance policy. This is a huge number of drivers to not be rated for. It is a huge amount of premium not collected to pay for these damages. Since that time, Progressive Insurance has taken a much harder stance during the new car insurance application period. They want to make sure they are rating for the people that are driving the vehicles that they insure.
What Happens If You Don’t Add Your Child?
If your licensed child gets into an accident while driving your vehicle and they are not listed on your policy, the insurance company may consider that a material misrepresentation. In plain terms, it means the company believes you intentionally withheld important information when setting up or maintaining your policy. This perceived misrepresentation can be enough to void the agreed contract. This misrepresentation can result in:
- A denied claim — especially if the child was at fault.
- Policy cancellation — your insurance could be dropped altogether.
- Difficulty getting future coverage — new insurers may see this as a red flag.
- Out-of-pocket costs — you could be stuck paying for the damages yourself.
What If Your Child Doesn’t Drive Much?
Some parents assume they don’t need to add their teen if the child “only drives once in a while.” Unfortunately, that doesn’t matter much. If your child is licensed and lives in your home, most insurance companies still require them to be listed. Some insurers may offer limited-use or student-away discounts if the child is only home part-time or doesn’t drive regularly, but that doesn’t eliminate the need to disclose them.
What Should You Do?
If you have a newly licensed child, talk to your insurance agent right away. You’ll want to:
- Add your child to your auto policy or,
- List them as an excluded driver if you don’t want them to drive your car (note: this also means your insurance won’t cover anything if they do drive it).
It’s always better to be upfront. Even though adding a teen driver may increase your premium, the cost of a denied claim can be much higher.
Final Thoughts
Trying to save money by not adding your child to your car insurance may seem harmless, but it could backfire in a big way. It could end up costing you far more than adding him or her to your car insurance policy. Insurance companies expect honesty, and failing to list a licensed driver in your home can lead to claim denials, canceled coverage, and serious financial risk. When in doubt, ask your insurance agent for guidance. It’s better to be safe than sorry.