Recommendations for Someone who has a Non-resident on their Auto Insurance Policy
If you know someone who currently has their dependent’s insurance set-up this way, we highly recommend they get a statement in writing from the current agent demonstrating that the child has coverage even though they do not live in the household. Chances are the agent won’t send that e-mail or letter because most companies would not knowingly insure the child under the parent’s policy. Would an insurance company cover the client if this was the situation? Possibly, but there may be legal issues and the insurance company may cancel the client for misrepresentation. Additionally, if the insured cannot produce any documented piece of evidence (such as an email or signed letter on company letterhead) showing they notified their agent of the situation and were told/assured coverage is still in place, the next place to look for clarification is in the policy itself. When we look at the policy it likely says coverage is only for relatives who reside in the household. Ultimately, our goal as an agency and agents is to never operate in the gray area between covered and not covered.
We provide our clients with the coverage that best fits their needs and are just as happy as they are when the end result is giving them peace of mind that the policy is written properly and, as it often happens, actually saves them money at the same time.
