When setting up your auto insurance policy, your insurer is going to want to know about anyone living in your household with a license who is allowed to drive your vehicle. Even though you have to name everyone who is in your household with a license, you can exclude some of them from your policy by naming them as an excluded driver. The question is – how will this affect things?
The Excluded Driver Cannot Drive Your Car
Whoever has been named as an excluded driver is not allowed to drive the car. It doesn't matter why the company has decided to exclude a particular driver. If they drive the vehicle, they won't be covered by any of your insurance benefits. They—and you—will need to pay out for any accident that happens while they are driving the car.
If the person lives in your residence, whether a spouse, child or roommate, and has access to your keys then it will be assumed that you have given permission for them to drive the car. Even if you didn't, you will still be held personally liable and your insurance company won't pay out.
In some cases, excluded drivers will still need to get a version of liability cover. This can mean your premiums increase through the addition of this type of policy.
No Driving in an Emergency
The no driving rule applies under any and all circumstances. This includes an emergency. If your partner needs to get you to the hospital for whatever reason, for example, they can't drive your car. You'll need to find another way to get there.
When You Don't Need to Exclude Drivers
If they have their own insurance policy, they will be able to drive their own vehicle. If you do prove this, it is possible that you don't need to include them on your own policy—excluded or not excluded.
Excluding drivers isn't possible in all states. Kentucky doesn't allow spouses and children to be excluded from an insurance policy, although you may be able to avoid putting them on your insurance if you can prove they have their own policy.
If someone has had their license revoked or isn't driving for medical reasons, it may be possible to send the license back to the DMV. This will depend on the state, but it would mean that you no longer need to include that person on your auto insurance policy.
Make sure you find out if you are allowed excluded drivers in your state. If you are, check with an insurance broker, like one at Independent Insurance Associates Inc, what that would mean for your policy and for the drivers in your household.
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