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The Benefits of Excluded Drivers

Written by Todd Clay. Posted in Research Last Updated: 07/25/2012

Having excluded drivers on your insurance policy is a good way to keep your premium lower.

excluded drivers

Excluded drivers are not allowed to ever drive your vehicle.

Being able to have excluded drivers on your insurance policy can be a mixed blessing. First, being able to exclude a driver that has a bad driving record will bring your insurance premium down. However, if an excluded driver ends up driving your vehicle, you could be facing serious trouble for something you did not cause.

So, be cautious when adding an excluded driver to your insurance policy. Don’t let the joy of the lower premiums overshadow your rationale thinking about the future.

What Are Excluded Drivers?

Excluded drivers are any drivers in your household (or not) that you specifically list on your insurance policy as not driving your vehicles. It could be a young driver that has their own insurance, but you have to either exclude or add them to your policy. It could also be a boyfriend or girlfriend that has a terrible driving record that you don’t want on your insurance policy.

The Benefits of Excluded Drivers

Being able to exclude a specific driver from your insurance policy means that you don’t have to pay the additional insurance premium from adding them to your policy. This can help keep your insurance premiums at decent rates, especially if the excluded driver has a bad driving record.

Bad drivers aren’t the only ones you can see benefits from excluding. You can also exclude young adult children that move back in the home, but have their own insurance. Being able to do this is nice, because these young drivers have higher insurance premiums than the rest of us.

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Can Anyone Be an Excluded Driver?

In general, yes, anyone can be excluded from an insurance policy. However, when it comes to the registered owner of a vehicle, the driver exclusions can be tricky. First, some states have laws that prevent the registered owner of the vehicle from being an excluded driver.

Second, insurance companies generally frown on excluding registered owners. There are companies that will do it, but there has to be a pretty darn good reason to do so.

The Downfall of Excluded Drivers

While excluded drivers are a great way to protect your insurance premium from a bad driver; it has its downfalls also. Once a driver is excluded from an insurance policy, they can NEVER drive your vehicle.

If they cause a car accident with your car, you could be held liable for part of the damage. Anything you are held liable for, your insurance company will not pay for because the excluded driver was driving at the time of the accident. So, it is very important that any excluded drivers on your insurance policy have absolutely no access to your vehicle.

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Todd Clay

Todd Clay is a former insurance agent with the largest insurance company in the United States. He earned his Bachelor’s from the University of Texas. He's worked in several fields but has specialized in insurance, financial-related information, and technology. He blogs at Car Insurance Guidebook. Connect with Tood on Google+

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