There are a number of reasons for this request. For some companies, it is a state requirement to list all household requirements. We have a few states that have that requirement. Typically, it is for the coverage exposure or more importantly liability exposure. It doesn't affect the rate, but the information is used to track down claim information at the time of loss. Some auto insurance companies require to know the names and ages your children that live in your household and are over the age of 10 so that they can keep track of potential (future) drivers. Some car insurance policyholders do not inform insurance companies when children in their households get their permits or licenses and therefore do not pay the proper increase in premium.

Your insurance company should not be able to use this information of non-licensed children in your household to raise your rates or charge you more. You may want to ask your company directly why they are requesting this information. If you do not receive a reply or one that is not satisfactory to you, you can always contact your state's insurance regulator. The insurance regulator should then look into your insurance carrier's reason for asking this information and their rating system and then reply back to you.

For example the New York Department of Insurance states that if you request information from your insurance company on a subject such as this and receive no reply you should file a complaint and the NYS DOI would investigate and respond to you in writing with their findings.

If you do not feel comfortable with an insurance company requesting this information about your children then you can shop around with other insurance carriers to find one that you feel more comfortable carrying your insurance policy with. You can get an online car insurance quote here.