Can my insurance company charge me for my son after payment in full?
Question Details: I had a 6 month auto policy paid in full. Several months into the policy, I received notification that my son would be added to the policy if I did not provide proof of his insurance. They said this is because my address is on his driver's license. He does not live with me, nor do I have contact with him. He has not lived with me for the entire term of the policy. I called them to explain, they said they require a legal document notarized at my expense. I provided this to them at great time and expense, but it was not fast enough for them, so they cancelled my insurance and now they say I owe them money or they will ruin my credit. How can this happen when I have paid them in full and their billing does not work on credit, it is paid up front.
It can happen because as you point out, uyou did not respond in time ("it was not fast enough"). That means you effectively had them providing coverage for another driver for whom you were not paying at your time (your son), since absent the proof he did not live there, given that he used your address, had he gotten into an accident, the insurer very likely would have had to cover him. Since you had them effectivley covering another person whom they had not agreed to cover, they can sue you for the cost thereof and also treat you as in breach of contract (the insurance policy is a contract).