The unlicensed driver will have to pay any fine that occurs from this. They are the one who is Driving Without a License. You issue comes in when this person has an accident and is not listed as a driver on your policy. Let's say he hits another car from behind. Your insurance company will not pay for the damages to either vehicle and will not pay for the injuries, real or ficticous, and you will be stuck with this out of your pocket. Why you ask? Because, your insruance policy along with the application you signed make up a legally binding contract. The company agrees to pay claims and to accept your risk and you agree to be truthful with them, pay the premiums, and notify them of any drivers and household members. You have committed material misrepresentation thus breaking the contract. You didn't notify them of the drivers so you didn't keep your end of the contract so why do you think they are required to keep their end. They aren't. And they will quickly cancel your policy as well.
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