Jeffrey Wade
An excluded driver is a person in your household who has been explicitly removed from coverage under your car insurance policy. Their name will show as excluded on your policy, and they won't be insured to drive any vehicles on your policy. Typically, this is done because that driver is causing a big increase in your rates, either due to inexperience or a bad driving record. Excluding a driver from your policy can help to lower your insurance premium. However, it's important to note that if an excluded driver operates your vehicle and is involved in an accident, they will not be covered under your policy.
| Characteristics | Values |
|---|---|
| Definition of an Excluded Driver | A person in your household who has been explicitly excluded from coverage under your car insurance policy |
| Who Can Be an Excluded Driver? | A risky driver, a driver with a bad driving record, a teen driver, or a driver with a DUI |
| Who Can Request an Exclusion? | The policyholder or the insurance company |
| Why Exclude a Driver? | To lower insurance costs, to avoid insuring a high-risk driver, or to retain insurance coverage |
| Exclusion Process | Contact the insurance company, fill out and sign a driver exclusion form |
| Exclusion Duration | Until mutually agreed to remove it by the policyholder and insurance company |
| Exclusion Limitations | Some states prohibit exclusions, especially for spouses |
| Exclusion Implications | The excluded driver won't be covered by the insurance company in any circumstances |
| Removing an Exclusion | Contact the insurance company and request to add the driver back to the policy |
What You'll Learn
Who is an excluded driver?
An excluded driver is a person in your household who has been explicitly removed from coverage under your car insurance policy. Their name will show as "'excluded'" on your policy, and they won't be insured to drive any vehicles on your policy. Typically, an excluded driver is someone you intentionally decide to exclude from your policy because their inclusion will increase your premiums. This is usually due to inexperience or a bad driving record.
When you exclude a driver from your policy, they may not drive your car under any circumstances—even in an emergency. If an excluded driver does drive your car, the insurance company will not cover any resulting accident. Any accident they're involved in won't be covered by your insurer, and both the policyholder and the driver can be held personally liable for any damages caused to others in the crash.
Insurance companies can put exclusions into your policy, but sometimes the policyholder asks for an exclusion to lower their insurance premiums. Excluding a high-risk driver from your policy may help you save on auto insurance.
Not all states allow policyholders to exclude household members from coverage. Some states specifically don't allow named driver exclusions at all, while others may require excluded drivers to have their own auto insurance before they can be excluded from your policy.
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Why exclude a driver?
There are several reasons why you might want to exclude a driver from your car insurance policy. The main reason is to avoid insuring a high-risk driver and to reduce insurance costs. A high-risk driver is someone who has a history of moving violations, at-fault accidents, DUIs, or other claims. By excluding such a driver from your policy, you can prevent your insurance rates from increasing. This is because insurance companies use a number of factors, including the driving records of all listed drivers, to price policies. If you list a driver who insurers see as high-risk, you will almost certainly see an increase in the premiums you pay, regardless of your own record.
Another reason to exclude a driver is if they are not going to be using your vehicle. For example, if you live with roommates who have their own cars and insurance policies, you may want to exclude them from your policy. This can put the insurance company at ease and avoid you paying more than is necessary.
It's important to note that not all states allow policyholders to exclude household members from coverage. Some states prohibit named driver exclusions altogether, while others may only allow exclusions for certain types of drivers or relationships. For example, some states don't allow you to exclude your spouse from your policy. Therefore, it's important to check the regulations in your specific state and with your insurance company before excluding a driver.
Additionally, excluding a driver means that they will not be covered by your insurance in any circumstances, even in an emergency. If an excluded driver uses your vehicle and is involved in an accident, your insurance company will not cover any resulting damages or injuries. Both you and the excluded driver may be held liable for any damages caused.
In some cases, it may be the insurance company that requests or requires the exclusion of a driver. This typically happens if the driver is deemed too risky to insure, such as if they have DUIs or a suspended license. If you don't exclude such a driver, your insurance company may cancel your coverage or even refuse to cover you.
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How to exclude a driver?
An excluded driver is someone you intentionally remove from your auto insurance policy. This is usually done because that driver is causing a big increase in your 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.
To exclude a driver from your policy, you need to inform your insurance company and follow any instructions they provide. You may have to fill out and sign a driver exclusion form. However, be aware that the rules for excluding drivers vary by insurer, and not all states allow for excluded drivers. Some states specifically don't allow named driver exclusions at all, while others may allow excluded drivers but require them to have their own auto insurance before they can be excluded from your policy.
If an excluded driver does drive your car and is involved in an accident, the insurance company will not cover any resulting damage. In this case, the excluded driver will be regarded as an uninsured driver and will face liability for all damages and injuries that result from the crash.
It's important to note that excluding a driver is different from removing a driver from your policy. Removing a driver means their name will be taken off your policy, while excluding a driver means they are specifically not covered by the policy.
When deciding whether to exclude or remove a driver, consider the driver's relationship to the policyholder, their driving habits, residence, and the overall impact on premiums. Excluding a high-risk driver may reduce your insurance costs, but it's crucial to understand the implications. An excluded driver cannot be covered by your insurance in any circumstances, even if you give them permission or it's an emergency.
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What happens when you exclude a driver?
An excluded driver is someone you intentionally remove from your auto insurance policy. This is usually done because the driver is causing a big increase in your 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.
If you exclude a driver from your insurance policy, the insurance company will update your policy by naming the excluded driver and specifying the conditions that won't be covered. Then, your insurer and you will sign an endorsement to confirm that the named driver will no longer be covered if they drive one of your insured cars. However, your policy will still cover them if they're a passenger in one of your vehicles.
After being named an excluded driver, the member of your household shouldn't drive any of the vehicles listed on your car insurance policy. If they do, it's similar to driving without insurance. In the event of an accident, both you and the excluded driver may be held liable for damages. If an excluded driver gets behind the wheel of your car and causes an accident, damage and injuries won't be covered. 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 specifically don't allow named driver exclusions at all. Other states may allow excluded drivers but require them to have their own auto insurance before they can be excluded from your policy. And other states may place restrictions on which drivers or which coverages can be excluded.
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What happens if an excluded driver causes an accident?
An excluded driver is someone who is intentionally removed from your auto insurance policy. This is usually done because the driver is causing a significant increase in your rates, either due to inexperience or a bad driving record. Excluding a driver means that they are not insured to drive any vehicles on your policy.
If an excluded driver causes an accident, the insurance company will not cover any resulting damage or injuries. This means that the policyholder may be held personally liable for any damages or injuries caused by the excluded driver. The policyholder could be responsible for covering the costs of property damage, medical expenses, and legal fees. The insurance company may also choose to cancel or not renew the policy.
In addition, allowing an excluded driver to operate your vehicle may result in legal consequences for the policyholder, such as fines or the suspension of their driving privileges, depending on local laws and the circumstances of the accident. It is important to understand the terms and conditions of your insurance policy and to enforce exclusions diligently to avoid these potential consequences.
The consequences of an accident with an excluded driver can be complex and burdensome, and it may be difficult to obtain compensation for any damages incurred. Injured parties may need to pursue legal action against the excluded driver or explore alternative options, such as uninsured/underinsured motorist coverage, to seek compensation for their losses.
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Frequently asked questions
An excluded driver is someone you intentionally remove from your auto insurance policy. Their name will show as "excluded" on your policy, and they won't be insured to drive any vehicles on your policy.
The main reason to exclude a driver 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.
To exclude a driver from your insurance policy, contact your auto insurance company. You may have to fill out and sign a driver exclusion form. However, be aware that the rules for excluding drivers vary by insurer, and not all states allow for excluded drivers.
You can typically exclude any family member from your car insurance, including your spouse, if your state allows it. Some states don't allow you to exclude family members, so a spouse is automatically covered by your policy.
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. 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.
