State Farm Is Cracking Down on Unlisted Drivers: What Policyholders Need to Know

If you have a State Farm auto insurance policy, now may be a good time to check exactly who is listed as a driver.

A recent Wall Street Journal investigation reported that auto insurers are closing an increasing percentage of liability and medical claims without payment. According to the Journal’s analysis, approximately 45% of these claims were closed without payment in 2025, compared with 35% a decade earlier.

The numbers involving State Farm were particularly striking. According to the Journal, State Farm’s percentage of auto liability and medical claims closed without payment increased from approximately 26% in 2016 to 47% in 2025.

One issue deserves particular attention: undisclosed or unlisted drivers.

State Farm Is Taking a Harder Look at Who Drives Your Car

The Wall Street Journal reported that State Farm has intensified scrutiny of claims involving people who regularly drive an insured vehicle but are not identified on the policy.

According to the Journal, State Farm told its agents that claims involving undisclosed drivers cost the company nearly $1.5 billion annually.

State Farm’s own policy materials warn customers about this issue. The company advises policyholders that they are responsible for identifying regular drivers of insured vehicles and reporting changes. Failure to disclose a regular driver may result in a denial of coverage or other adverse action.

This can become extremely important after a serious accident.

Who May Be Considered a Regular Driver?

Many people assume that only the vehicle’s owner or primary driver needs to be listed on an insurance policy. That assumption could create a coverage problem.

State Farm advises customers to disclose regular drivers, which could include a:

• Spouse or significant other
• Child or newly licensed teenager
• College student who drives while home
• Relative or roommate
• Friend or other person who regularly uses the vehicle

In other words, this issue may involve more than someone who drives your car every day.

What State Farm Policyholders Should Do Now

Don’t wait until after an accident to learn that State Farm believes someone should have been listed on your policy.

• Review your declarations page. Make sure the drivers identified on the policy are accurate.
• Consider everyone who regularly drives the vehicle. Pay particular attention to newly licensed children and other household members.
• Ask your State Farm agent in writing. If you are unsure whether someone should be listed, ask the question and keep a copy of the response.
• Keep your insurance documents. Save your policy, declarations, endorsements and communications with your agent.
• Report important changes. A newly licensed driver or a significant change in who regularly uses the vehicle should prompt a review of your coverage.

What If State Farm Denies Your Claim?

A State Farm claim denial is not necessarily the final word.

If State Farm denies coverage because of an alleged undisclosed driver, misrepresentation or failure to notify the company of a change, you should:

1. Request the denial in writing.
2. Ask State Farm to identify the specific policy language supporting the denial.
3. Obtain the complete policy and all endorsements in effect on the accident date.
4. Preserve emails, texts and other communications with your insurance agent.
5. Speak with an attorney experienced in automobile insurance disputes before accepting the denial.

Whether State Farm can legally deny a particular claim depends upon the actual policy language, the facts surrounding the driver’s use of the vehicle and applicable state law.

An Important Point About the Wall Street Journal’s Numbers

The Journal reported claims “closed without payment.” That does not necessarily mean every one of those claims was denied or that an insurer acted improperly. Claims can close without payment for legitimate reasons.

Nevertheless, the trend is significant. State Farm’s reported increase from approximately 26% in 2016 to 47% in 2025 demonstrates why consumers should pay close attention to their policies and the people who regularly drive their vehicles.

State Farm Claim Denied? Don’t Assume the Insurance Company Is Right

Most people buy auto insurance expecting it to protect them when something goes wrong. But whether coverage exists after an accident can depend upon policy language that many consumers have never read.

If someone regularly drives your vehicle, make sure you understand whether that person should be disclosed. If your teenager recently obtained a driver’s license, contact your insurer. And if State Farm, or another insurance company, denies coverage after an accident, do not assume the denial is legally correct simply because the insurance company issued it.

Was Your State Farm Claim Denied?

If you or a family member was injured in a car accident and State Farm denied the claim, refused coverage, or claimed that a driver was not properly listed on the policy, an experienced New York personal injury attorney can review the policy, denial letter and circumstances of the accident to determine whether coverage may still be available.

Caesar, Napoli & Spivak PLLC represents seriously injured accident victims throughout New York. Contact our firm for a consultation if an insurance company is refusing to provide coverage following an accident.

Source: The Wall Street Journal, “If You Get in a Car Crash, the Risk Is Growing Your Insurance Won’t Pay”. All figures and company statements cited above are as reported by the Journal.

This article is for informational purposes only and does not constitute legal advice. Insurance coverage depends upon the specific policy language, applicable endorsements, facts of the claim and governing law.

Related Practice Areas

• Auto Insurance Litigation
• Uninsured and Underinsured Motorists
• Car Accidents

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