Exclude Family Members From Your Car Insurance Policy?

It is possible to exclude a household member from your auto insurance policy, but not in all states. An excluded driver is a person in your household who has been explicitly left out of your car insurance policy. Their name will be listed as excluded, and they won't be insured to drive any vehicles on your policy. Excluding a household member may be necessary to avoid high insurance costs if they are considered a risky driver. However, it is important to note that not telling your insurance company about a household member is a form of insurance fraud.

Who is considered a household member?

When it comes to auto insurance policies, household members typically include the taxpayer, spouse (if applicable), and the taxpayer's dependents. This is similar to the composition of a household in the context of health insurance.

In the case of health insurance, a household usually includes the tax filer, their spouse, and their tax dependents. This means that a spouse should be included if the couple is legally married. It is important to note that a legally separated spouse or a former spouse should not be included, even if cohabiting. An unmarried domestic partner should only be included if there is a child together or if they will be claimed as a tax dependent.

For auto insurance, household members refer to those who are licensed drivers, regardless of whether they regularly drive a particular car. This can include spouses, partners, or significant others; children with driver's licenses; and other family members who live in the same house, such as parents, aunts, uncles, or cousins. Even if some household members have their driver's license and their own separate insurance policies, they should still be listed on the household policy if they occasionally operate the insured vehicle.

It is worth noting that not every listed member will necessarily affect the insurance rates, as they can be classified based on their driving status. Additionally, members without a driver's license or those who do not plan to get one can be classified as "non-drivers".

Why exclude a household member?

There are several reasons why you may want to exclude a household member from your auto insurance policy. Firstly, if a household member will no longer be driving your vehicle, you can exclude them from your policy in most states. This can be a way to reduce costs, especially if the household member is a high-risk driver with a history of accidents or violations that negatively impact the cost of your insurance. Excluding such a driver from your policy could result in a lower insurance rate.

Secondly, if a household member has their own vehicle and insurance policy, you may want to exclude them from your policy to avoid any overlap in coverage. In such cases, they can be classified as "other insurance" on your policy.

Thirdly, if a household member is no longer eligible to drive due to age or physical disability, excluding them from your policy can be a way to simplify your insurance coverage.

It is important to note that not all states allow policyholders to exclude household members from coverage. Some states prohibit excluding anyone of driving age, while others may require them to have their own insurance before being excluded. It is also crucial to ensure that an excluded driver does not drive your vehicle, as any accident they are involved in would not be covered by your insurer.

What is an excluded driver?

An excluded driver is a person in your household who has been explicitly omitted from coverage under your car insurance policy. Their name will appear as "excluded" on your policy, and they won't be insured to drive any vehicles on your policy. Typically, car insurance policies extend coverage to all licensed household members, but you can seek an exclusion if you wish. This is known as a named driver exclusion.

When you exclude someone on an insurance policy, your insurance company won't cover any claims caused by that person. Excluding a household member may be necessary to avoid high insurance costs if they are considered a risky driver. Risky drivers include those with recent drunk driving convictions, suspended or revoked driver's licenses, or poor driving records.

You might exclude a driver from your policy to save money on your premiums, or because you don't want them driving your vehicle. For example, you may not want a roommate or adult sibling to use your car. Excluding a driver can also reduce your overall level of risk, as your insurance company is no longer responsible if they drive one of your listed vehicles and get into an accident.

It's important to remember that once a driver has been excluded, they cannot drive your vehicle under any circumstances. If they do, you may be held personally liable for any accidents they have. Not all states allow policyholders to exclude household members from coverage, and some states may offer limited coverage to excluded drivers.

When should I exclude a driver?

An excluded driver is a household member who you specifically leave off your car insurance. Their name will be listed as "excluded" on your policy, and they won't be insured to drive any vehicles on your policy. Not all states allow policyholders to exclude household members from coverage.

You should exclude a driver from your car insurance policy if a household member will no longer be driving your vehicle. You might also want to exclude a licensed family member from your policy due to the impact their status could have on your premium. For example, if a driver has multiple accidents or violations on their motor vehicle report that negatively impacts the cost of your insurance, excluding them from your policy could lower your car insurance rate.

However, a household member shouldn’t be excluded if they plan to drive your car, even occasionally, because any accident an excluded driver is involved in won’t be covered by your insurer. If the excluded driver gets behind the wheel of your car and causes an accident, they will be regarded as an uninsured driver and face liability for all damages and injuries that result from the crash.

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. Therefore, it's important to check with your insurer.

It's worth noting that removing a driver and excluding a driver are two different things. After you remove a driver from a car insurance policy, their name will be taken off your policy.

How to exclude a driver

An excluded driver is a household member who is specifically left off your car insurance. 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 significant increase in your rates, either due to inexperience or a bad driving record. Excluding a driver from your policy can help lower your insurance costs.

To exclude a driver from your insurance policy, you need to contact your insurance company and follow their instructions. You may have to fill out and sign a driver exclusion form, also known as an endorsement or insurance rider, which makes a change to your coverage. However, not all states allow policyholders to exclude household members from coverage. Some states specifically don't allow named driver exclusions, while others may require excluded drivers to have their own auto insurance before being removed from your policy. Therefore, it's important to check with your insurer and understand the rules and restrictions that may apply.

It's worth noting that excluding a driver means they won't be covered by your insurance in any circumstances, even in an emergency. If an excluded driver uses your car and gets into an accident, your insurance company will likely deny coverage, leaving you and the excluded driver personally liable for any damages or injuries. Additionally, your policy could be cancelled or not renewed as a result.

Before excluding a driver, consider alternatives such as comparing car insurance quotes, ensuring the risky driver is the primary driver on a safe vehicle, or taking advantage of discounts for older drivers who complete an approved defensive driving class. Remember, excluding a driver is a serious decision that can have financial and legal implications, so make sure to weigh your options carefully and understand the consequences.

Frequently asked questions