Question: I don't understand why my wife's auto insurer needs my information. I don't drive, nor do I have a license. I get rides every place I go. Why are insurance companies so nosy about who lives in a house? What will it do with the information if it gets it? Will her rates go up? Answer: Your wife's insurance company is trying to accurately calculate its risk by gathering information on who besides your wife may potentially operate the insured vehicle. (See “ Do I have to list my spouse on my car insurance policy?”) The insurance company isn't specifically picking on you. If your household contained a teenager who was of licensing age, or an elderly parent who used to be licensed, the auto insurer would still want to know; it mandates all household residents over a certain age (usually 15) are disclosed. The auto insurance provider needs enough data points to decide if your household is a good fit for the company and, if so, what rates it should charge. The insurer doesn't care about your home life. There isn't a person going over your personal information looking for dirty details; instead the data goes into a computer program whose algorithm analyzes it to discern certain rating (risk) factors. This typically includes factors associated with:
The vehicle - model, year, annual mileage, location, usage
The driver(s) - gender, age, driving experience, driving record, claims record
This isn't a comprehensive list; you can read more about base rates and rating factors here.
You don't drive, but why?
Once an insurer is aware of all potential resident operators it can categorize them. The categories can vary by insurer, but tend to include groups such as licensed, unlicensed, unrated and excluded. To place you into the correct grouping, auto insurance providers will want to know why you don't have a valid license.