Is there a reason to notify my auto insurance company of a student driver?

Is there a reason to notify my auto insurance company of a student driver?

It will raise the crap outta my rates and since every licensed driver is insured and the insurance follows the car, not the driver, is there a reason? My young learner is 15 and has a learners permit. Right now the lessons have just been in the country, so no worries yet, but shes getting better and will be ready to get out among the other idiots on the road soon.Thanks

Obi

Yep, there's a reason. That reason is the misrepresentation / non-disclosure clause in your policy agreement (every policy has one), and it's serious stuff.An insurance policy is a legal agreement, and wilful misrepresentation voids a legal agreement. Your policy is no exception, I assure you. Your policy also contains a clause that you'll notify the insurer of any material change to the contract, and a new driver in the house is one of those material changes. If you 'forget' to let them know about this driver, they'll think you did so to avoid paying the increased premiums. And they'll be right.Here's how it always happens. You, knowing that the insurer will raise your rates, decide not to tell them about the newly-licenced driver just yet. Maybe you want to wait until she starts really driving, or maybe you figure the renewal date is the better time. You might even use that semi-technical assumption stuff like you did in your first sentence, figuring there's some loop hole that you found that they haven't seen before.Then, unexpectedly and at the worst time possible (because accidents always happen at the worst time possible), you get that call. You lent her the vehicle, and it's just been turned into a smoking ruin at some intersection. You call the insurer to put in the claim, hoping they won't make a big deal out of the fact that the driver was someone they hadn't heard of before. But they do make a big deal out of it, because they looked up her address and how long she's been licenced (yes they can do that) and think you were deliberately hiding her from them to avoid the premium increase.Next thing you know, you get a registered letter delivered to your house. It says that not only are they cancelling your contract with them immediately, they're denying coverage for the accident for reasons of non-disclosure / misrepresentation of material information. And they'll get away with it, because their team of expensive lawyers closed all the loop holes many years ago. Now you're stuck paying all the repair & medical bills yourself, hoping against hope that no lawsuits arise from this one little incident.I worked in auto insurance for 15 years, and I can't tell you how many times I've seen that very thing happen to people. I've even seen people pay 10 to 20 thousand to lawyers and sue the broker, insurer and anyone else they can think of for not explaining that to them properly, but I've never seen anyone win.Do you really want to be one of those people who finds out the hard way? Your call, but at least now you know.

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