To List or Not to List? Disclosing Drivers on Your Auto Policy

April 24, 2017

Some may not think it, but listing all drivers in your household is of the upmost importance. Failing to do so, can be detrimental to your policy. This is a common mistake that some aren’t aware of making. Our blogs are here to help you maintain knowledge and confidence in all things insurance. Read more to find out why listing drivers is such a crucial step.

Like many of us, families, jobs and other commitments, make it difficult to remember specific steps you need to take when it comes to things like insurance. If you have a brand-new driver in your household or if you simply never listed drivers in your household, the repercussions to your policy, extend longer than a cancelled policy. To start, your auto policy, is a legal document that informs you of the coverage and protection applicable to you. In it, it will cite important information applicable to your specific policy. For example, under the OAP1 section 1.4.1 of the wordings, it states: “promptly tell us of any change in information supplied in your original application for insurance, such as additional drivers, or a change in the way a described automobile is used.” This means that under this policy, you have an obligation and responsibility to your insurance broker to inform them of additional drivers. If you do not inform your broker of all drivers in your household, you can risk your policy being voided or cancelled for non-disclosure.
Aside from this, the repair costs to your vehicle, will also be altered. For non-disclosure, the driver that is not listed is responsible for the repair costs to the vehicle. If the non-listed driver gets involved in an accident with your name on the policy, it is not the insurance broker’s responsibility to provide coverage to that driver, since they aren’t on said policy. As well, in the case of the driver getting sued by a third party because of an injury, they will not have their broker on their side to protect or defend them. So, is this risk really worth it?

What Will Happen?
By not letting your insurance broker know of all drivers in the household, even if they drive rarely, there is the question of will happen to the policy holder? This results in claims made under your policy can be denied or even cancelled, with exception to certain accident benefits. In such an important circumstance like driving, there is strict and standard statutes in Ontario insurance forms that asks applicants to state all drivers, even if they drive on rare occasions. If it is not read properly, or not followed, it ultimately falls on the policy owner.

Who Do You Need to Add?
We have compiled a list of the different circumstantial drivers that also needed to be added to your policy:
• Newly licensed teenager
• Teenage driver who does not live in the house with you full-time.
• A minor who lives with you, but has her own vehicle.
• A parent that lives with you and drives your car.
• A caregiver who drives you everywhere.

What Do You Do?
The answer is surprisingly simple. By calling your insurance broker and adding the driver to your policy, you can avoid all the hassle and risk that non-disclosure comes with. Like we always tell our clients, calling and speaking with your insurance broker is the best solution to any questions or concerns relating to your policy. At Bedrock, we always take pride in getting to know each client and their specific needs and circumstances. We stand by our comprehensive and unique policies that provide our clients with not only great coverage, but also peace of mind. Call us or visit our website to learn more about us and how we can get you Bedrock covered today!

Contact Us: 416-907-2130