Does car insurance cover excluded drivers?
Your insurance company can hold you responsible for damages to your car if you exclude a driver from your policy and then they drive with your permission afterwards.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
UPDATED: Oct 13, 2024
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UPDATED: Oct 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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When you get insurance coverage for your vehicle, you typically need to list any other drivers in your household on your policy. In some cases, though, you may decide to exclude a driver from your coverage. If you do, that person cannot drive your vehicle.
But what happens if they do drive your car? Are excluded drivers covered in some situations? Let’s take a look at how it works.
- An excluded driver is not covered under your policy and should not drive your vehicle, but they may be covered under another policy
- If you give an excluded driver permission to use your car and they get into an accident, the insurance company may hold you responsible
- When an excluded driver uses your car without permission, the insurer is unlikely to hold you responsible if they get into an accident
Are excluded drivers covered by insurance?
Excluded drivers are usually not covered by your insurance in an accident. There are a few different factors that decide whether or not auto insurance will cover other drivers. The most significant example comes from when you specifically exclude someone from driving your vehicle and then allow them to drive without correcting that exclusion. According to the Insurance Information Institute, for the insurance company to cover them, it would have to factor their risk profile into your premiums. And when you omit them from your policy, they are not considered in your rate calculations.
Keep in mind that an excluded driver may be covered if they are passengers in your insured vehicle or have other kinds of insurance, such as no-fault insurance coverage. However, if they’re excluded from your policy, you should not allow them to drive your vehicle.
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Why have an excluded driver on an insurance policy?
Suppose you have always listed all household members on your auto insurance policy. But one of your relatives is a problem driver who keeps drinking and driving. As a result, they have gotten into multiple accidents and forced you to file claims several times. In that case, your insurance company may give you an option to pay higher rates, cancel your policy, or exclude that problematic member of your household from your insurance.
Unless you want to pay more for car insurance or lose coverage with your insurance company, you are better off excluding the person in question.
You may also choose to exclude a driver of your own free will if they pose a risk to your vehicle and their behavior is likely to increase your rates. For example, if you have a roommate that has been convicted of stealing cars in the past, you are better off excluding them from your insurance. Also, if a member of your household likes to drink and drive and had their license privileges taken away at one point, you can’t afford to trust them with your car — and neither can the insurer. A suspended license can affect car insurance rates, and you shouldn’t want someone to put your budget at risk.
Having an excluded driver on an insurance policy is a financially savvy move if you don’t want to be responsible for the behavior of someone with a terrible driving record or bad driving habits.
Read more: Does car insurance cover all other drivers?
How do insurance companies treat excluded drivers?
Generally, once you’ve excluded someone from your coverage, the insurance company considers them unable to drive your car. However, if they do drive and have an accident, the claims process will depend on whether you gave them permission to drive.
If You Gave Permission
First, if you allow an excluded driver to use your vehicle and they have an accident, 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. Your only other option will be to go after the driver in question to force them to pay for your expenses.
If You Didn’t Give Permission
However, suppose the excluded driver stole your car and hit someone. In that case, you likely won’t be held accountable for their actions. Instead, the driver in question will be held responsible for the damages, and the injured party may sue the excluded driver.
Read more: Does car insurance cover hitting a pedestrian?
What kind of insurance would cover an excluded driver?
An excluded driver may be able to drive your vehicle if they have their own insurance. If the excluded driver has liability insurance and no-fault auto insurance coverage, it may pay for injuries and damages to other people’s property in an accident.
Alternatively, if you have uninsured/underinsured motorist coverage and an excluded driver damages your car, you can file a claim to get compensation for the damage to your vehicle. And if an excluded driver steals your car and gets involved in an accident, you need to file a police report and file an insurance claim. Your comprehensive car insurance may cover the damages as a result of theft.
Read more: How do you report a driver with no insurance?
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Don’t Let Excluded Drivers Use Your Car
Excluding a driver is a good idea if their behavior will push your insurance rates through the roof or put your car at risk. When an excluded driver uses your vehicle and causes an accident, your policy is unlikely to cover them. And if you gave them permission to drive, expect to be on the hook for the bills.
Case Studies: Coverage for Excluded Drivers in Car Insurance
Case Study 1: Liability Insurance Coverage
John excluded his cousin, Mike, from his car insurance policy due to Mike’s history of reckless driving. One day, Mike borrows John’s car without permission and causes an accident, resulting in injuries to the other driver and damage to their vehicle. Since Mike is an excluded driver, John’s insurance company denies coverage for the damages caused by Mike.
However, the injured driver can pursue a claim against Mike’s liability insurance, which he carries separately. Mike’s liability insurance will provide coverage for the injured driver’s medical expenses and property damage.
Case Study 2: No-Fault Insurance Coverage
Sarah excludes her teenage daughter, Emily, from her car insurance policy because Emily has a learner’s permit and is not yet a fully licensed driver. One day, while Emily is driving with Sarah in the car, they are involved in an accident caused by another driver. Despite Emily being an excluded driver, Sarah’s no-fault insurance coverage can come into play.
The no-fault coverage will provide medical expense benefits to Emily for her injuries sustained in the accident, regardless of who was at fault. This coverage ensures that Emily receives necessary medical treatment without Sarah having to bear the financial burden.
Case Study 3: Comprehensive Insurance Coverage
Mark has excluded his roommate, Alex, from his car insurance policy due to Alex’s suspended license. One night, Mark’s car is stolen by Alex, who then gets involved in an accident. Since Alex is an excluded driver, Mark’s insurance company denies coverage for the damages caused by Alex.
However, Mark has comprehensive insurance coverage, which protects against theft and damage to his vehicle. In this case, Mark can file a claim with his insurance company to cover the damages caused by the theft and subsequent accident involving the excluded driver.
Frequently Asked Questions
Does car insurance cover excluded drivers?
No, car insurance typically does not cover excluded drivers. When a driver is explicitly excluded from a policy, they are not considered an insured party and are therefore not covered by the policy.
What is an excluded driver?
An excluded driver is someone specifically listed on an auto insurance policy who is intentionally excluded from coverage. This means that if the excluded driver gets into an accident while operating the insured vehicle, the insurance company will not provide coverage for any damages or liabilities arising from that incident.
Why would someone exclude a driver from their car insurance policy?
There are several reasons why someone might exclude a driver from their car insurance policy. Common reasons include a driver having a poor driving record, a history of accidents, or a suspended license. By excluding a high-risk driver, the policyholder can potentially lower their insurance premiums.
How do you exclude a driver from a car insurance policy?
To exclude a driver from a car insurance policy, the policyholder typically needs to contact their insurance company and make a formal request. The insurance company may require specific information about the excluded driver, such as their name, driver’s license number, and reasons for exclusion.
Are there any exceptions to the rule that car insurance does not cover excluded drivers?
In some rare cases, certain states or insurance policies may have specific exceptions that allow for coverage of excluded drivers under limited circumstances. It is crucial to review the terms and conditions of your policy or consult with your insurance provider to understand any potential exceptions or variations.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.