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Written by: Shelly Campbell

Category: Agent

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With the long-term economic crisis this country is experiencing, many insurance companies are seeing a growth in the number and severity of claims.  The result of this rise in losses, combined with the increasing cost of paying the insurance companies’ business costs, is an increase in the overall insurance rates for everyone.

While as a consumer, none of us can do anything about the increased cost of electricity, for example, there is one area in which we can all make an effort to ensure a fair and equitable risk assessment by the insurance company for your household.

Costs associated with claims filed due to undisclosed or uninsured household members have risen dramatically.  As households attempt to drive down their monthly premiums, they decide who to include on their insurance policy.  I may be an agent, but I have had young drivers living in my household, and the premium hurt to pay.

Many of my customers complain that it isn’t the insurance company’s business who lives in their household or that their fully licensed roommate or child doesn’t drive their vehicles.  If this is true, there is no argument for signing a driver exclusion or providing proof of that person’s insurance.  Personal experience has taught me that it is easier to tell the insurance company upfront and get proof of insurance from your roommate than to explain why your roommate driving your car and getting into an accident wasn’t disclosed on the application.  If this happens, the insurance company may return your premium and deny the claim altogether because of the misrepresented risk on the application. It’s even worse if it is your child.  Please remember to disclose all household members over age 14, even if they are not licensed yet.