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 drop someone off your policy. A young person or someone with bad driving record can increase your premium a lot and it is only natural that you would want to see if it is avoidable. But you should remember that such person should never drive the insured car if he/she isn’t covered. 

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.

Can you save on auto insurance by not including a licensed resident of your household on the policy? Leaving a high risk driver out of coverage 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.

Insurers or policyholders may be able to use a driver exclusion clause to leave a problematic driver out of a car insurance policy in order to limit such person’s effects on costs and risk levels. Otherwise, the risk becomes too much to accept for an insurer or the premium too high to pay for a vehicle owner.

Some automobile 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 left out drivers. That is why insurers take the existence of such a driver into account 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 mentioned few companies may not like the idea at all. They don’t want to be party to problems caused by not insured drivers and this does happen.

In addition, there could be some policies sold in the market that comes with driver exclusion clauses. Commonly, cheap vehicle insurance providers may offer policies that explicitly ban 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 have policy endorsements to that effect on the policy.

As a general rule, you should only accept (or request) driver limitation if you are absolutely sure left out person 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. Essentially, it would be hard to argue the point 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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