The Decision to Exclude a Driver is Usually Financial
While, in most cases, it makes sense to have every licensed driver in your household listed on your automobile insurance policy, sometimes the option to exclude a driver from the policy will make a big difference in your premiums. If you do make the decision to exclude a driver from the insurance policy, of course, it is important that they do not drive the vehicle(s) covered by the policy.
The Insurance Company May Insist on Excluding a Driver
Insurance companies assess a driver’s risk by looking at several factors. If a driver is too much of a risk, an insurer may insist that they are excluded from the policy. The reasons that a driver may be deemed too risky to insure are:
- Multiple moving violations
- License is suspended
- Too many insurance claims
- DUI on record
Though some insurance companies specialize in selling minimum-limit policies to risky drivers, others refuse to cover them at all.
You May Choose to Exclude a Driver
Even in cases where the insurance company will agree to cover a driver, you may still make the choice to exclude them. By choosing to exclude a high-risk driver, your rates may reduce significantly. One other example is a teenager in the home who may be restricted from driving due to behavior – it would make sense to exclude the teen during the time they are not allowed to drive and add them back on the policy once the privilege to drive has been earned.
What If the Excluded Driver Drives My Car?
Under no circumstances should an excluded driver drive the vehicle covered by the policy under which he or she is excluded. This is equivalent to driving without insurance. If the excluded driver causes an accident, there will be no insurance to pay for repairs to the wrecked cars (yours and any others involved in the collision), and any medical bills or injury claims that result from the accident. Both the owner of the car and the excluded driver could be held personally responsible for the financial damages.
How To Exclude a Driver
The primary policyholder has to request that a driver be excluded and sign off on the exclusion. The exclusion will be clearly listed on the policy documents, usually on the declaration page. It is possible to have more than one insurance policy and to exclude a driver from one policy and not another.
Not every insurance company will permit excluded drivers. Preferred carriers, especially, will often disallow exclusions of licensed drivers within the household.
How to Reinstate a Driver
In order to reinstate an excluded driver on your policy, call your insurance agent. The agent will check the driver’s record and verify that he or she has a valid driver’s license. From that point, it is usually just a matter of requesting the driver be added, and anticipating the new (higher) premium bill.
Is it Worth It to Exclude a Driver?
As long as you are confident that the excluded driver will not use the covered vehicle under any circumstances, it may make financial sense to go forward with the exclusion. Have your agent go over the numbers with you in terms of how much you will save with the exclusion versus without. In some scenarios, for peace of mind, it may be better to continue coverage for all licensed drivers within the household.
Below is a video clip from CBS This Morning regarding car insurance rates.
Personal Injury Lawyer in Gold River, California
I’m Ed Smith, a Gold River personal injury lawyer. If you or a family member were injured in an automobile accident caused by a negligent driver – even if that driver was uninsured – we can help by providing free and friendly compassionate legal advice. If you have questions you would like answered with knowledge and compassion, give our office a call at (916) 921-6400 or if you will be calling from outside the local area, our toll-free number is (800) 404-5400. We can also be contacted through the online form on our website.
Photo: https://pixabay.com/photos/adult-automobile-automotive-blur-1869397/
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