RISK MANAGEMENT TIP: AUTO INSURANCE: What to Keep In Mind When It Comes to Unnamed Drivers

Asking the right questions when writing auto insurance is vital to ensure no drivers are left off of the policy.

Failing to name additional drivers on the policy could lead to the carrier denying a claim or pursuing the
agent in an E&O claim.

Always ask the questions exactly as stated when completing the application. For example, the ACORD
Personal Auto application asks for all residents and dependents – licensed or not – in addition to the
regular vehicle operators. Do not make any assumptions if your application deviates from the carrier’s
questions when entering the information into the carrier’s system. Verify the information with the client.

Important items to address include:

1. Who lives in the household?
2. Is there anyone with interest in the vehicle other than the listed drivers or lienholder?
3. Do you regularly lend your vehicles to friends or family? This could be particularly relevant if you have a one-person household with multiple vehicles.

Remind clients at renewal that they should contact you or the carrier if there have been any changes to their household situation since the prior term. Note that any newly licensed household members may need to be added to the policy even if they do not have a vehicle.

Carefully investigating the drivers can help you avoid E&O claims while also servicing your client and carrier.