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| What To Know About Driver Exclusions |
Most people know someone who they would never consider driving with, either because they are scary drivers or have a bad driving history. Unfortunately for some, this person may live with you and be driving your vehicles! The question now comes, how will these drivers affect your car insurance if they are involved in an accident while using your car?
Let's face it, most people share their vehicles with others, whether it be friends, family or roommates. Generally speaking, most auto insurance policies are broad enough to cover people who you give permission to drive the vehicle. The problem in these scenarios, is there is always a chance that the insurance company may find out about the "unknown" driver and require that he/she be added to the policy, either as a rated or excluded driver. If they are added as a rated driver, that usually means you have to pay more to cover the risk, especially if they have a bad driving record!
Now, you may not want to pay to cover these additional drivers, this is when the named driver exclusion becomes a beneficial alternative. In some states, this endorsement might not be available so please check your state insurance laws or ask a local agent. Essentially, someone who is listed as an excluded driver on the policy will not be rated, but they are exempt from any possible coverage! So, if you exclude your roommate on your policy and he/she gets in an accident, there would be no coverage offered by your policy.
When purchasing insurance in some states, the insurance company may run a consumer report that cross references people who are associated with the address of your household. It's very common to see people exclude the drivers associated with the address, as no one want to pay for additional drivers but this can come back to haunt them if one of them gets in an at-fault accident using their vehicle.
One of the most common usages of the driver exclusion, is when someone has a spouse who has either a really bad driver record or a suspended license. If you do exclude a spouse or anyone for that matter on your policy, remember this exclusion will stay in place until you request the exclusion be removed. For questions on driver exclusions and other endorsements, always talk to your local independent insurance agent as they are there to help you!
PLEASE NOTE: This is a general description of insurance coverages and not a statement of contract. Availability of coverages vary depending on the state the policy is written for and insureds meeting specific underwriting guidelines.