Auto Insurance Claims: is this true?, car insurance policy, material misrepresentation


Question
I was told by an insurance agent that I could open a separate car insurance policy on my 20 year old son and save a lot of money by not having him on our family policy.  He has a good driving record and drives a car that doesn't warrant collision coverage.  My question is...  what would happen if he occasionally needed to drive one our other cars that would be insured on the family policy and an accident happened?  We live in Michigan and are under no fault insurance.

Answer
Hi Glen,

This is a sticky situation. Generally, all licensed drivers in the household must be listed on the policy. If your son is not listed and drives your car and has a wreck it may be considered "material misrepresentation" and could void your insurance coverage. However, their are some insurance companies that will allow you to do this. I would suggest that you get something in writing from the agent indicating that this is ok and the insurance company is ok with it. That way if their is a problem in the future you can sue the agent and collect undder his errors & omissions insurance.

I hope this helps
Richard Hixenbaugh