Does a moocher have to be listed on your car insurance?

You’ve tried everything you can think of to get that deadbeat relative (a.k.a. moocher) out of the house – you put a lock on the fridge, stopped buying groceries, canceled the cable television, and turned the heat waaay down – but he still refuses to leave.  The last thing you want to do is be stuck paying extra money for him to drive when you could be enjoying cheaper auto insurance rates.  So you make sure the car is always locked up, and the car keys are kept safe and sound.  Isn’t that good enough?

In most cases, the answer is no.  Most insurance companies require that any licensed driver living within your household must be listed on your auto insurance policy.  Some insurers are permitted (by state mandate, so you need to check with your state insurance agency) to exclude a moocher, upon request.  You’ll likely be required to sign a waiver attesting to the fact that you will not allow said moocher to drive your car for any reason and in the event of an accident with said moocher driving – even an emergency beer run – you acknowledge that your insurance coverage will not apply.

But that’s not always the wisest course of action.  Even if you can exclude a moocher from your car insurance policy, consider the “what ifs” and what those “what ifs” could cost you.