Does insurance company need to know

Define ‘doesn’t drive’. If his license has expired or been revoked, you definitely need to tell your auto insurer that and remove him from the policy. Insurance companies will ask the state for driving records, often at renewal. They can cancel your policy if a person without a license is listed as a driver.

I highly recomend not letting him drive. You will be opening up yourself, him and all that you own to liability. If someone gits him or he hits someone else, it won’t matter you’ll be into a lawsuit you won’t win. Because?? You were aware he was impaired (yes, even if he still has a drivers license). I told the insurance company and they required me to take my wife to the DMC and surrender her drivers license, which I did. She now has a state issued ID card that looks like a drivers license. I did not safe anything on my auto insurance, go figure……..

I think the answer may vary by state law and insurance company policy. I live in Texas and have State Farm. I was told it is State Farm policy that if I am married and my wife holds a valid driver's license, then she is required to be on my auto policy. In order to take her off the policy, I have to prove to State Farm that she is no longer licensed to drive. When I asked I got the sense this was State Farm policy and not Texas law, but I don't really trust my agent to be accurate source on Texas insurance law.

when I told State Farm that my wife was no longer driving and they could remove her from the policy I not only did not save any money, they charged me $10 for doing so. 😖

@JC5

Any time one ponders a question of legality, it's best to direct it to your elder law attorney. They would be the experts.

I suspect that state law has as much to do with the answer as anything. In some states, doctors are required to report those unfit to drive for a host of reasons including cognitive impairment so the information may be reported in other ways.

My parents' policy became voided if he drove by virtue of his medical diagnosis/medical advice not to drive regardless of whether it had been reported. I don't think the reduction in the cost of their policy was huge— they had 3 vehicles; it might be different with one.

HB

If he drives and has had a dementia diagnosis, insurance will not cover him if he has a wreck AND he will be held responsible for the wreck according to the legal system. The good news is that once he surrenders his license he will be off the insurance policy thereby saving money. That was how I got my DH to give up his license. We have USAA insurance and saved quite a bit with taking him off the policy.

We have Progressive. They took DW off but it did not save us one dime.

In our case I did some investigation. DW driver's license is still valid for a couple of years. Fortunately she agreed to give up driving years ago before any incident every occurred. My auto policy actually goes up a few dollars if I take her off, but I have to prove my spouse is not a licensed driver in order to take her off. Practically, it makes more sense just to leave her on the policy and wait until her license is up for renewal in a few years before deciding to change anything.

== They wrote the homeowners policy in her name, the auto policy in mine, and listed both of us on the auto policy. I had a candid conversation with the agent and they went ahead with everything as if it wasn't a big deal. Maybe it varies by state?==

Is she listed as being a licensed driver or just as a member of the household? Some states require everyone living in the house to be listed due to the no fault medical coverage. And of course the homeowners should be in her name because she owns the house.