Everyone wants to save money on car insurance. Sometimes, people think about leaving a regular driver off their policy to cut costs. They do this because, for example, a teen driver or a family member with speeding tickets costs more to insure.
However, doing this is a huge mistake!
Is It Legal to Withhold Household Members from Your Car Insurance?
No, it is not legal. When you buy car insurance, you sign an application. You must tell the truth. If you hide a regular driver, you commit insurance fraud. Experts call this “rate evasion.” Insurance companies base your price on everyone who lives with you and drives your vehicles. Therefore, lying about who lives in your house breaks the law.
The Costly Consequences
What happens if the car insurance company catches you? The results can be very serious.
First, your insurance company will deny your claims. If the hidden driver crashes your car, you pay for everything out of your own pocket. You will pay for the other person’s medical bills, and you will pay for their car repairs.
Second, the company will cancel your policy. Having a canceled policy on your record makes finding new coverage at an affordable price very hard.
Finally, you might face criminal charges. Because this act counts as fraud, Texas law can punish you with fines or jail time.
The Right Way to Save on Car Insurance
What if you have a risky driver at home, but they never drive your car? Texas law gives you a safe choice called a “Named Driver Exclusion.”
With this rule, you sign an Named Driver Exclusion form. This document states that the excluded person has absolutely zero coverage. It safely lowers your price. However, you must remember that the excluded person can never drive your car. This is because, if they drive the car and crash, you will get no coverage from the insurance company. Thus, you will pay for all medical bills and property damage out of your own pocket.
How to Find Better Rates
Finding cheap coverage does not mean you must break the rules. You just need to shop around.
A local independent insurance agent can help you do this safely. For example, AlphaSure Affordable Insurance Services has helped drivers in San Antonio and Laredo find great rates since 2003. We know the Texas market well. We can check prices from many different companies at once. Let us help you find affordable car or home insurance the right way, without the risk.
