Auto Insurance Forum

I was told by State Farm that I could not drop my 17-year-old daughter from our auto insurance policy. She no longer lives at home and doesn't own a car. She doesn't want to pay the premium, so I assume I am stuck with the bill. Their explanation was that she "might" drive someone else's vehicle and have a wreck, causing my husband and I to be sued. They also said that any insurance company would insist she be on the policy until she is 21 or obtains her own insurance. Is this common?

J ude, Texas

Dear Jude,

Lee Jones, a spokesperson for the Texas Department of Insurance, says that personal auto insurance policies in Texas automatically cover family members living in your household. Thus, if there is a young driver in the household — regardless of whether they are allowed to drive the vehicles or do not own a vehicle of their own — the insurance company has the right to price the policy according to the risk the young driver poses.

The crux of the matter is where your daughter is living. Is she living somewhere else temporarily, such as at a college or prep school, or with friends or relatives? If it is temporary, the insurance company will probably not allow you to drop her from your policy. If she is out of the house permanently, ask the insurance company what kind of proof you would need to show that she is on her own.

Jones says you can also request that a "named driver exclusion" be placed on your policy in which your daughter is excluded from coverage. However, it's generally not a good idea to do this because if she is excluded from the policy and she drives one of your vehicles and causes an accident, you can be sued for damages.

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