A named driver exclusion gives you the ability to remove a specific person from your auto insurance policy.
In other words, you let your auto insurance provider know that the named person doesn’t have your permission to drive your vehicle.
Although there are a lot of reasons to get a named driver exclusion, the most common is to save money on your auto insurance premiums. High-risk drivers, such as teenagers and the elderly, can drive your costs up if you allow them to drive your vehicle.
If you’re interested in a named driver exclusion on your car insurance policy, it’s important that you have a solid understanding of this type of endorsement.
Here’s what you need to know about the named driver exclusion.
What is a Named Driver Exclusion?
As outlined above, a named driver exclusion is an endorsement on your auto insurance policy that states a certain person isn’t allowed to drive.
This means that the named person is no longer covered under your policy.
A named driver exclusion is most common in households with a teenage or elderly driver that’s currently covered under your insurance.
Getting this type of endorsement takes them off of your insurance, thereby lowering your car insurance rates.
Most auto insurance policies cover all household members, which is why it’s necessary to specifically state you want a driver excluded from the policy.
Commonly Excluded Drivers
Among the most commonly excluded drivers are teenagers and the elderly.
These groups are often added to an auto insurance policy as household members. At the same time, they are deemed a higher risk by providers which, in turn, increases monthly premiums.
Other groups that are commonly excluded are those with numerous traffic violations or accidents as well as those that just don’t drive.
A person with a lot of traffic violations or accidents, especially serious offenses like a DUI, can greatly increase your monthly auto insurance rates.
Excluding them from your insurance greatly brings down the monthly rates.
Why Exclude a Driver?
As stated above, the main reason to exclude a driver from your car insurance policy is to lower your rates.
Certain groups of drivers, such as teenagers, have much higher premiums associated with them – removing them from the policy will lower your rates.
Another scenario in which a driver is excluded is spearheaded by the insurer. Sometimes an auto insurance provider doesn’t want to continue to carry a driver with a bad driving record. A named driver exclusion takes this person off the policy without needing to cancel it.
Named Driver Exclusion Effect on Premium
A named driver exclusion can save you money on your auto insurance.
Taking a high-risk driver off of your policy results in a lower premium. However, it’s worth noting that, as a household member, they’re typically still partially covered under the policy.
For example, even excluded drivers are still medically covered under your auto insurance.
Because of this, you’ll still pay more on your premiums than if the excluded driver wasn’t on your auto insurance policy altogether.
With that said, the cost tradeoff with an excluded driver is typically still much cheaper than if they were completely covered by your policy.
What If an Excluded Driver Drives?
An excluded driver isn’t allowed to drive your vehicle.
If they do drive your vehicle, they won’t be covered by your auto insurance policy. The Balance states that this is the same as driving with no insurance.
Unfortunately, there are no excuses for the named driver exclusion. That person is never allowed to drive.
As an example, suppose you need to be rushed to the hospital in an emergency.
If the excluded driver is the only person available to drive, they’re still not covered under your auto insurance if they are in an accident on the way. Your provider isn’t under any obligation to cover them.
There are no loopholes when it comes to this particular auto insurance policy endorsement.
Terms of the Exclusion
The terms of the exclusion depend on the particular situation.
An excluded driver isn’t necessarily excluded forever. Most of the time, you’re able to get them back onto the policy at some point in the future if you’d like.
If you were the one that excluded the driver to save money on your premium, you can ask your auto insurance provider to reinstate them at any time.
If the provider itself excluded them, such as for a bad driving record, they can often be relisted as a covered driver once their driving record recovers.
Reinstating an Excluded Driver
It’s typically very easy to reinstate a previously excluded driver onto your car insurance policy.
Insure.com states that all you have to do in most situations is contact the insurance company and ask for them to be reinstated.
Of course, you’ll also have to show that they have a valid driver’s license and have a solid driving record.
Does the Named Driver Exclusion Vary by Provider?
Not all auto insurance companies offer the named driver exclusion.
In fact, some states actually prohibit this endorsement in the first place. The reasoning is that the excluded drivers might still drive – thereby putting uninsured drivers on the road.
Even in states that do allow this endorsement, some auto insurance providers don’t offer the named driver exclusion.
Sometimes these carriers decide not to carry anyone in the entire household if a single driver is ineligible for coverage.
It’s important to look at the fine details of your auto insurance policy to see where they stand on the named driver exclusion.
There are a lot of good reasons to take advantage of the named driver exclusion on your car insurance policy.
However, if you do so, it’s important to read the fine details and doublecheck that the person is actually excluded. The same goes for letting any driver drive – make sure that they’re actually covered under the policy before they get on the road.
Your auto insurance agent will help you set up a named driver exclusion if you decide that’s best for your family.