Auto insurance providers offer the insured a great deal of flexibility regarding who they share their policies with. Ultimately, you have the legal right to determine who is on your policy, but as with most things, your decision may have consequences. For this reason, if you are considering changing your coverage, it is helpful to learn more.

Right to Remove 

Again, insurers leave a great deal of choice up to the policyholder, but certain insurance requirements and state laws might limit just how much freedom the policyholder has to decide who has coverage. For instance, in some situations, every licensed driver in the residence must be covered by insurance, especially minor drivers. 

If you are the only person with a policy in the house, you might be unable to remove the driver until they secure their own policy. The same might be true when it comes to a spouse. Likely, your spouse would have to provide consent to the insurance company before you could remove them from the policy. 

Decision to Remove

In addition to the right to remove a driver, assessing when removing a driver makes sense versus when it does not is important. Aside from the passing of the driver, whenever the other party moves out of your residence, it is best to take them off the policy. Residing apart from you generally means the driver will no longer have access to your vehicles, so being covered on your policy is unnecessary.

However, one instance when the decision to remove a driver could backfire is in the case of a multi-vehicle discount. For example, if you and your adult child share a policy, it might be best to remain together, provided you will stay in the same residence. Splitting up the policy would cause you to lose the discount.  

Excluded Drivers

As you recall, some insurance companies require all licensed drivers in a home to fall under the policyholder's coverage. However, there is a way around this. Some companies will allow you to list an excluded driver. To gain this status, you must certify that while the driver resides at your residence, they will not have access to your vehicle. 

If someone with a less-than-stellar driving performance or a poor insurance history lives with you, listing them as an excluded driver could keep you from paying a higher premium.

For specific questions about your situation, be sure to speak with a car insurance agent that can answer your questions.