What Is an Excluded Driver on an Insurance Policy?

Usually, insurers automatically include every driver in a household in their premium calculations and on the policy if they end up insuring the risk. At times it may be necessary for financial or practical reasons to exclude someone off your policy. If this is your intention you may want to stick around and read the answer to what is an excluded driver on an insurance policy? 

A driver exclusion is an endorsement that explicitly prohibits a member of your household (spouse, roommate, live-in nanny, licensed teenager) from your auto insurance policy. It confirms that the banned driver will not drive the insured automobile and will not be insured by your policy if an accident were to occur when such driver was in charge.

There could be several reasons to go this route. Most important one is the bad driving history of the excluded driver that makes your premium too expensive. For example, your partner my have a DUI on his record and this would make it expensive and hard to find a policy for you. Excluding such driver can understandably be desirable. Nonetheless, you should remember that you cannot exclude a driver and allow him/her access to the vehicle. This would mean that such person would be uninsured.

Some auto insurance companies may not be keen on this idea and they have their own reasons. Some companies may allow it in general except certain states. The problem is that there has been court cases where auto insurers had to pay for the damages that caused by excluded drivers. Also, owner of the automobile can be liable following accidents caused by the excluded drivers. That is why insurers take the existence of such a driver when they calculate the premiums.

This may still be the case when they offer auto insurance for unlicensed drivers under special conditions. They still consider the existence of an unlicensed driver when calculating premiums even though they agreed that someone else will be driving the vehicle or it wouldn’t be driven at all.

Most companies would only allow exclusion of a particular driver if they have their own cars and insurance coverage. As I said few companies may not like the idea at all. They don’t want to be party to problems caused by excluded drivers and this does happen.

In addition, there could be some policies sold in the market that comes with driver exclusion clauses. Commonly, cheap car insurance providers may offer policies that explicitly excludes any driver under the age of 25. This could be the case with sports car insurance policies as well. Many companies would be prepared to insure a sports car if it would be driven only by drivers over the age of 25 and they put exclusions to that effect on the policy.

As a general rule, you should only accept (or request) driver exclusions if you are absolutely sure excluded drivers will not drive your automobile. Worth mentioning again that owner of the vehicle is liable for injuries and damages caused by his vehicle regardless of who was driving, unless it is stolen. The fact is that it would be hard to argue that someone who is living with you took the car keys without your permission. Number of people made that argument in the US courts and lost.

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