Listed Drivers: Insured Or Not?

Being a listed driver on someone else's insurance policy does not automatically mean you are insured. A listed driver is simply someone who is noted on the policy, but they are not insured unless they are driving with the permission of the policyholder. If a listed driver borrows or rents another vehicle and has an accident, the policyholder's insurance will not cover them unless they are a family member.

However, if someone borrows a car with the permission of the policyholder and has an accident, they will usually be covered by the policyholder's insurance, even if they are not a listed driver. This is called permissive use.

What is a 'Named Insured' and how does it differ from being a 'Listed Driver'?

A Named Insured is the person who opened the policy and is usually the owner of the vehicle. They are responsible for paying premiums and making changes to the policy, such as renewal and cancellation. They are covered by their insurance no matter what car they are driving.

A Listed Driver, on the other hand, is simply someone who operates the vehicle. They are insured, but they cannot make changes to the policy. They are only covered when driving the vehicle they are listed under.

In the case of a married couple, both spouses can be listed as Named Insureds, even if the vehicle is registered to only one of them. However, this is not always necessary, and it is possible for one spouse to be the Named Insured, while the other is listed as a driver.

It is important to note that all regular drivers of a vehicle should be listed on the insurance policy to avoid complications in the event of an accident.

What happens if a driver is not listed on the insurance after an accident?

If a driver is not listed on the insurance policy and gets into an accident, the consequences can be significant, both legally and financially. Here are some possible scenarios and outcomes:

Disputed Liability

When an unlisted driver is involved in an accident, the insurance company may dispute liability or fault. In this case, the insurance company may refuse to cover the damages because the unlisted driver is not covered under the policy. This can result in out-of-pocket expenses for the policyholder.

Excluded Coverage

If a driver in the household has been explicitly excluded from coverage, they will not be protected by the insurance policy in case of an accident. The insurance company is not obligated to cover any damages caused by the excluded driver.

Policy Violation

Failing to disclose all household members who have access to and regularly drive the vehicle can be considered a violation of the insurance policy. Insurance companies may view this as a form of non-disclosure or insurance fraud, leading to penalties or even policy cancellation.

Difficulty in Obtaining Future Coverage

Being flagged for non-disclosure or insurance fraud can make it challenging and expensive to obtain car insurance in the future. Other insurance companies may see the policyholder as a higher risk and charge higher premiums.

Claim Denial or Limited Coverage

When an unlisted driver is involved in an accident, the insurance company may conduct a thorough investigation. If they find that the unlisted driver was operating the vehicle, they may deny the claim or limit coverage, citing policy violations. This can leave the policyholder financially responsible for the damages.

Permissive Use

If the unlisted driver had explicit or implied permission from the policyholder to operate the vehicle, they may still be covered under permissive use. However, not all insurance policies include permissive use, and coverage may be limited.

Non-Permissive Use

If the unlisted driver did not have consent from the policyholder to drive the vehicle, the insurance company may still cover the claim. If the unlisted driver is a family member, the policyholder may be held liable for the damages under the Family Purpose Doctrine.

Stolen Vehicle

If the unlisted driver stole the vehicle, the owner is typically not responsible for any damages resulting from the accident. However, if the theft was foreseeable (e.g., the owner left the car unattended with the keys inside), the owner may be held liable for any injuries or damages that occur.

In summary, it is essential to list all regular drivers on an insurance policy to avoid legal and financial complications in the event of an accident. Unlisted drivers can face challenges in obtaining coverage and may be personally liable for any damages caused in an accident. It is always best to consult with an insurance agent or attorney to understand the specific implications and options available.

Who should be included on your car insurance policy?

When deciding who should be included on your car insurance policy, it's important to consider who will be driving your car regularly. This can include your spouse, teens, young adults, seniors, and anyone else in your household. It's also a good idea to list anyone who might drive your car occasionally, such as friends or neighbours.

In general, it's recommended that you include everyone in your household on your policy, including licensed family members and unrelated members such as a housekeeper. This is to ensure that you won't be held financially responsible for any damages or injuries caused by an unlisted driver. It's also worth noting that some insurance companies may require proof of insurance for any household members who have their own insurance policy.

When determining who to include on your policy, it's important to consider the driving history of the added driver, as this may impact your premium. It's always a good idea to consult with your insurance agent to get a quote for the cost of adding a driver.

In terms of specific individuals, here are some people you may want to consider including on your car insurance policy:

• Spouse or partner
• Children with driver's licenses
• Other family members who live with you, such as parents, uncles, aunts, or cousins
• Nannies or caregivers who will be using your car regularly
• Children away at college who may still drive your car during visits or breaks

What is an 'Excluded Driver' and how does this affect your insurance?

An excluded driver is a household member who is specifically removed from your car insurance policy. Their name will be listed as "excluded" on your policy, and they won't be insured to drive any vehicles on your policy. This is usually done because the excluded driver is causing a big increase in insurance rates, either due to inexperience or a bad driving record. Excluding a driver from your insurance policy means they are not covered by your insurance in any circumstances.

The primary reason to exclude someone from your car insurance policy is to lower insurance costs. An insurer takes into account the driving record of every licensed driver in your household when setting your premiums, and a licensed driver who is considered risky will likely increase your bill.

If an excluded driver gets behind the wheel of your car and causes an accident, damage and injuries won't be covered by your insurance company. That means you or the excluded driver may be held personally responsible for the damage or injuries. In addition, your policy could be canceled or not renewed.

Not all states allow policyholders to exclude household members from coverage. Some states prohibit named-driver exclusions because they create uninsured drivers, something that puts other people on the road at risk.

What happens if an excluded driver gets into a car accident?

An excluded driver is someone who is specifically excluded from coverage under an insurance policy. This means that if the excluded driver gets behind the wheel of the insured vehicle, any accidents that occur will not be covered by the insurance carrier.

If an excluded driver causes an accident, the insurance policy will not cover any damages that result. This means the excluded driver will be personally responsible for any losses or legal fees that arise from the accident. The policyholder may also be held personally liable for any damages or injuries, and any claim made by a third party may be rejected by the insurance company.

If you gave the excluded driver permission to drive your car, you will typically be liable for any damages and injuries that person causes. Your insurance company will probably refuse to pay for your claims, and you could get sued. If the excluded driver stole your car, you likely won't be held accountable for their actions, but your insurance company may still refuse to cover the damage.

In some cases, injured accident victims can pursue compensation directly from the excluded driver and the vehicle owner. They may also be able to file an uninsured motorist claim for their injuries if they have uninsured motorist coverage.

Frequently asked questions