Youth drivers and auto insurance are two things that always make parents cringe. Young drivers account for a disproportionate share of auto accidents and, consequently, are expensive to insure. At Safeguard Insurance, we truly understand how expensive young drivers can be. That is why we offer our customers multiple auto insurance quote options to make sure you always have the right coverage at the right price.
Given the cost of insuring young drivers, there is a temptation to hide those drivers from your auto insurance company. While this might save you some money in the short term, it could cost you much more if that youth driver has an auto accident. Here are 4 reasons you should never hide a young driver from your auto insurance company:
- Material misrepresentation or concealment. Your application for auto insurance is a representation of material facts. This includes things like where you live, how many miles you drive, and the drivers that live in your household. That last part is important: the drivers in your household. Insurance companies have a right to know about the licensed drivers that live your household and have regular access to your vehicles. If you sign an auto insurance application that intentionally omits information about drivers in your household, you may have materially misrepresented your risk to the insurance company. This means the auto insurer, at the time of claim, may have the right to void your policy and deny all coverage.
- Coverage reduced to minimum limits. Some auto insurance providers will reduce your liability limits to the statutory minimum if an accident is caused by an undisclosed driver living in your household. This means that high coverage limit you purchased to protect your assets is now practically worthless. In Nevada, the statutory minimum is $15,000 per person, $30,000 per accident for bodily injury liability and $10,000 for property damage liability.
- Retroactive premium charge. Even if your auto insurance company decides to pay a claim caused by an undisclosed driver, they have the right to charge you retroactive for the premium you should have been paying. If you’ve been hiding a young driver for several years, that retroactive premium charge could be substantial and payment due in full.
- Non-renewal of coverage. Insurance carriers have the right to refuse renewal of insurance policies. They must notify you of the reason for non-renewal and sent out a notice within a certain period of time. If you have an auto accident claim caused by an undisclosed youthful driver, expect your policy to be non-renewed at the next expiration date. In Nevada, auto insurance providers can, and do, ask about prior non-renewals of coverage and the reason for non-renewal. Expect that you will pay substantially more for auto insurance if you have been non-renewed due to an undisclosed driver.
The bottom line is simple: do not make the mistake of hiding drivers that live in your household. If you feel your Nevada auto insurance rates are too high, call Safeguard Insurance for no-obligation quotes. Let us help you find an auto insurance policy that provides the coverage you need at a price you can afford.