What Happens If An Excluded Driver Gets Into An Accident?

Car Insurance Excluded Driver

What does an excluded driver mean on your car insurance policy?

Before we can clearly understand excluded drivers on a car insurance policy, we first need to understand how drivers are listed on a auto insurance policy.

Two Types Of Drivers

If there is a licensed driver in your home, you either need to list them as a covered driver, or list them as an excluded driver and not allow them to drive the vehicles listed on your policy.

Those are the two options for licensed drivers in your house, list them or exclude them.

Covered Drivers

Car insurance policies will typically display a list of drivers on your policy or declarations page. This is the list of drivers who are authorized to drive the vehicles listed on your insurance policy. Anybody who is licensed and living in your house or anybody who drives your vehicle on a regular basis (at least once a month) needs to be listed as a driver. For every listed driver on your auto policy, you will pay additional premium.

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Excluded Drivers

Excluded drivers are also listed on your insurance policy or declarations page. However, excluded drivers are drivers that cannot, under any circumstance, drive the vehicles on your policy. So it’s the opposite of the covered drivers list.

Being excluded means they cannot drive your car… FOR ANY REASON! We have clients often that say, “yeah, “he was an excluded driver, but I just needed him to back my car out quickly or I just needed him to run down to the store to get some groceries real quick”. No! If someone is an excluded driver, then they have NO coverage.

Excluded drivers listed on your policy will not cost you money on your car insurance premium.

Just to be clear and make sure everyone understands: if an excluded driver gets into an accident, there will be NO coverage at all. Not for the car, not for the other car, not for the medical injuries they caused, nothing! If you are an excluded driver or if you have an excluded driver listed on your policy, do NOT let them drive your vehicles!

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What About Everyone Else?

With most car insurance policies, if somebody is not listed as a driver on your policy, but you give them permission to drive the vehicle, they (in most cases) would be covered under your policy’s permissive use clause.

Many people try to gain the system and NOT list young drivers on their policy and then hope they’re covered under permissive use. This will NOT work and is a very dangerous game to play. Permissive use is for people not living in your house and people who do not drive your vehicle on a regular basis. Don’t try to pull a fast one on the insurance company, in the end, it will only come back to hurt you.

Why Would You Exclude Someone On Your Car Insurance Policy?

Example 1: You live in a house with a roommate. The roommates are licensed and live in the same house as you. This means they need to be listed or excluded. You will never allow them to drive your vehicle. So instead of paying extra to have them as a covered driver, you elect to exclude them.

Example 2: You have a young, teenage driver. They are a horrible driver and have 3 accidents and 2 tickets. You decide you are going to take away driving privilege’s and not allow them to drive any of your vehicles (or any vehicles at all) until they are older and more mature. In this case, you could exclude them on your car insurance policy.

Example 3: You have a senior parent living with you. They still have a license but the doctor has recommended they don’t drive anymore. Because they are still licensed and living in your home, you have to either list them (and pay more premium) or exclude them. You choose to exclude them and not allow them to drive anymore.

When Can I Remove Someone As A Driver On My Car Insurance?

It’s important to point out that simply removing someone as a driver from your policy and excluding someone from driving on your policy are two different things.

Example: Let’s say that your child has been living at home and listed on your car insurance. They’re now 21 and they have moved to a different state. They have their own house and they have their own car insurance.

At this point, because they have moved out and they live in a different state and have their own car insurance, you can simply remove them from your policy. You do not have to exclude them. Then when they come back to visit every so often for the holidays, they’re not excluded. They can drive under the permissive use clause.

How Do I Exclude Someone On My Car Insurance Policy?

Each state and each policy is different; but for the most part, when you need to exclude someone, it’s as simple as calling your insurance company and letting them know you need to exclude someone. Then they have you sign a form and it’s done!

Disclaimer: As we always say, each policy and state is different. So check with your own insurance company for the specifics of how they handle excluding drivers on your policy.

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