Question
Can I carry liability insurance for my mother-in-law's vehicle even though she does not live with us?
Last week, while shopping for homeowner's insurance with a potential new provider, it was mentioned that we might be able to improve the cost by bundling our auto insurance. During the discussion, it was mentioned that we may have some issues with our liability coverage for my mother-in-law. This provider was saying that he would not be able to include my mother-in-law as we have been and he suggested that there could be some risk that coverage may be denied if something happened. Is what we have been doing okay or are there legitimate concerns?
Answer
The rules for having a non-household member on your policy depend on the specific insurance companies rules and guidelines. Some companies do not like to insure a resident who does not like in the household. Other companies do and can refer to them as non-resident drivers. It sounds like this is not a policy the company you are shopping with has, which is okay. You are not breaking any laws by having her on your policy as long as your current company approves the risk. Good luck and if you have any other questions, don't hesitate to ask.