For context, I live in NY.
My mom is disabled and hasn't driven in probably 20 years (she stopped driving before she became disabled) and we don't see her driving in the near future.
My dad wants to take her off the policy (since it became more expensive once I got my license at 16 a year and a half ago) to possibly reduce the cost of the policy, but when both my parents called to have her taken off (2 separate calls), they told her she has to give in her driver's license. I have found no information online saying this so I want to see if this is actually a thing or something the insurance company is just saying.
Do you have to surrender your license to be taken off the policy?
byu/RealTME01 inInsurance
Posted by RealTME01
8 Comments
People love to say whatever they can to prevent being charged premiums. It’s called rate evasion. It makes sense that if she hasn’t driven and has no desire or need to, to turn in her license and just got an ID.
With that being said, if she doesn’t want to do that, ask to have her excluded from the auto policy instead. That way she won’t be allowed to drive any vehicles on the policy, and if she *does* she, your father and any other owners of the vehicle will be held personally responsible for damages and/or injuries.
It is really company specific. If your company is saying that is how they do it then yes.. she would have to do it. You could look at other companies that maybe dont require it. However New York is one of the most regulated states for insurance. I know that with Liberty mutual if she still has a license they cannot remove her.
Usually a driver exclusion endorsement form is signed and added on. There would be no coverage provided by the policy for any accidents if the excluded driver drove any car.
It may actually increase the rate to remove her. Any company I have worked and written for, a married couple with active drivers licenses rates better than one where one is unlicensed. And it is never easy to explain to an older couple that their rate increased because one of them no longer has a license.
And yes, if she has an active license, most companies would require your spouse to be on the policy, so to list her as a non-driver, she would have to surrender her license.
We require the license be surrendered to remove a driver who won’t otherwise be insured.
The insurance company says to have her not listed as a driver she has to give up her drivers license. That’s their rule. Where’s the question?
So long as she is a licensed driver, she has to be listed.
every licensed driver has to be assigned to a vehicle. if they have their own policy and vehicle, that’s fine- if they don’t- they have to be assigned to someone else’s policy in the household. if your cousin (who has a drivers license) who never drives moves in but exclusively takes the bus- they still have to be represented. some companies will allow a driver exclusion- most won’t.