| In California many insurance companies will inquire | | | | the policy will state that these people specifically will |
| about additional household residents that live in the | | | | not have any coverage. |
| home at the time that the insured purchases a policy. | | | | The reason that the insurance company does this is |
| Often times, these companies will also mail the | | | | to ensure that the appropriate premiums are being |
| insured a written request upon renewal to check if | | | | charged on the auto insurance policy to so that the |
| there are additional household residents. | | | | company can maintain profitability. A good example is |
| The majority of auto insurance policies that are sold | | | | if a parent purchased a policy and did not disclose |
| in California offer coverage that extends out to | | | | that they had a newly licensed child living in the |
| other operators that are not named on the policy. | | | | household. If the newly licensed driver were to be |
| This is called permissive use coverage and generally | | | | rated on the policy the premium would be significantly |
| extends to non household residents that occasionally | | | | higher than if not. These premiums would need to be |
| use the vehicle for a short amount of time. | | | | higher because of the additional exposure that the |
| When shopping for an auto insurance policy is it very | | | | insurance companies has by having a newly licensed |
| important that the consumer discloses all of the | | | | operator driving the vehicle. |
| residents of the home. With most insurance | | | | Consumers should make sure that all household |
| companies any person that lives in the household will | | | | residents are disclosed to their insurance company. |
| need to be listed as an excluded operator or be listed | | | | Even though these residents may not be listed as |
| on the policy as a driver. When listed as an additional | | | | specifically excluded most insurance companies |
| driver the premium will be rated appropriately by | | | | protect themselves in the insuring agreement of a |
| factoring the driving experience and record of the | | | | policy stating that the permissive use coverage does |
| additional drivers. When listed as an excluded driver | | | | not extend to household residents. |