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Your 20-something just moved home and you're requiring him or her to have a separate insurance policy. You've invoked parental privilege and taken away the keys from an irresponsible teen driver. Or, maybe there's someone in your household who should be an excluded driver on insurance for other reasons.
To keep a driver off your auto insurance policy, you'll need to add a driver exclusion. Here's what it means, how long it lasts and the risks you face if the excluded driver uses your vehicle.
What is a driver exclusion?
When a policyholder - or an insurance company - takes formal steps to remove a household driver from an auto insurance policy, that's a driver exclusion. For example, an insurance company might want an excluded driver on insurance to avoid having to cancel an entire policy if one driver has a bad driving record, a suspended license or too many claims. On the other hand, a policyholder might want to exclude a teen driver if he or she lost driving privileges for not following the rules - or maybe someone in the household received a DUI and no longer has a valid driver's license.
If these types of insurance exclusions are allowed in your state, a driver exclusion form would need to be completed and possibly other supporting documentation would need to be provided to complete the process of excluding drivers from auto insurance.
How long will a driver exclusion last?
Once in place, the driver exclusion will remain until you ask for it to be removed. To request the withdrawal of an exclusion, contact your insurance company. They will help determine if the exclusion can be removed and, if so, explain the next steps.
What are the risks of having an excluded driver on my policy?
In most states, if an excluded driver in your household uses your car and has an accident, the accident will not be covered under your insurance policy, and vehicle damage and liability coverage will not be provided. If you decide that permanently excluding drivers from your auto insurance policy is the right option for you, be sure the excluded driver holds his or her own auto insurance policy.
What if the excluded driver took my car without permission?
If the excluded driver used your car without permission, you may have to prove that the driver stole your vehicle for the accident to be covered by your insurance.
Driver exclusion requirements differ by state. Some states require all policyholders with an excluded driver to carry additional coverages that will protect the excluded driver in the event of an accident. If you are trying to identify the best protection for an excluded driver on insurance, we can help assess your risk and determine coverage options.
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American Family Insurance is our brand name. Auto policies are underwritten by American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company, Madison, WI. Property policies are underwritten by Homesite Indemnity Company, Homesite Insurance Company, Homesite Insurance Company of California, Homesite Insurance Company of Florida, Homesite Insurance Company of Georgia, Homesite Insurance Company of Illinois, Homesite Insurance Company of New York, Homesite Insurance Company of the Midwest or Homesite Lloyd's of Texas, Boston, MA. American Family Connect Insurance Agency, Inc., places policies with related and unrelated companies. In Texas, certain property coverages may be underwritten by Ranchers & Farmers Mutual Insurance Company. Each company has sole financial responsibility for its products. Products, pricing, discounts, benefits, and availability vary by state and may be subject to change. Exclusions apply.
Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.
This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.
Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.
This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.