This is about laws in U.S.A. where a driver's license is often the most common form of identification.
Some of the backstory:
My wife's sister and her son live with us. Due to her being a single-parent mom and needing a way to get to work, I purchased a car years ago that I have let her use. I never transferred the vehicle title to her because it seemed she did not make enough to pay for the insurance. Consequently I have also been paying for the insurance on both my own car and the car that has been predominantly in her use.
Now when her son obtained a driving license, there has been some talk about him getting his own car and his own car insurance. However my wife called our vehicle insurer (GEICO) to inquire about adding him to our car insurance in the mean time.
As was kind of expected we found out that the insurance rate would go up. More interestingly however the customer service agent also told us the following:
- That everyone in the household with a driver's license must be listed on the insurance.
- That the only way to avoid having my wife's nephew on our insurance is by him surrendering his driver's license.
To me these statements make no sense because there can be multiple valid reasons why a person would have a driver's license (a common form of ID in USA) but not have a car insurance. For example:
- They do not have their own vehicle.
- They live near shopping areas and prefer to walk or bicycle.
- They had a car in the past but now do not have one.
Even in a situation like ours the person living in a household should not necessarily be the responsibility of another member of the household. They could be a roommate/cotenant who would be normally responsible for their own expenses or life choices as regards vehicle ownership/use.
So thinking about this it seemed like the insurance company is coercing me to pay for another person's insurance just because that other person lives in my household.
So here is the question I have:
Can a car insurance provider demand that I insure a particular person having a valid driver's license in my household?