Auto insurance Excluded Driver

A named driver exclusion is usually an endorsement added to an insurance policy that states a specifically named driver, usually living in the household, will not be covered by the car insurance company as long as they cover the car.

The named driver exclusion would be added to an auto insurance policy and specifically exclude all losses from coverage involving the named driver. It is usually sent to the insureds when the carrier becomes aware of a risky driver who might drive the insured car (e.g., the teen driver of the named insured). The named driver may have had a suspended license, DUI conviction, accidents, tickets, etc.

Some insurers give the insureds an ultimatum - the risky driver be excluded or they cancel your policy. The other drivers may not want their rates to be affected due to one household driver that has been irresponsible behind the wheel.

The policyholder signs the exclusion form knowing that the drivers named will not be covered by any insurance if they operate the cars listed on the policy. This does not affect the liability insurance of the included driver or car owner if the excluded driver does operate the vehicle without permission of the covered owner.

But should the excluded driver drive the car with permission and cause an accident, they and the car owner (who has attached or vicarious liability for whoever they allow to drive their car) can be held personally responsible for any damage the excluded driver causes. If the excluded driver causes minor or serious bodily injuries and/or property damage to others the insurance on the car will not cover the accident. So never give an excluded driver permission to drive (even in an emergency) because expenses, damages, lost wages, etc. from an at fault accident will become the responsibility of the car owner and excluded driver.

A car owner is not eliminated from being held liable from the actions of someone that is listed as excluded that drivers the car, unless the car was taken without permission or reported stolen.

Otherwise both the excluded driver and the car owner can be held responsible, the named driver exclusion is not a way for a car owner to get liability taken off of them for the acts of a driver.

Remember for a person to be excluded from auto insurance coverage, they have to be listed on the exclusion form. If a car owner lets any unnamed driver or person drive their car, then their liability insurance would remain on the car, occupants, and driver, unless they are specifically listed as an excluded driver on the auto insurance policy.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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