People who live in the same home can usually save money on their car insurance by purchasing an auto insurance plan covering all the drivers and vehicles in the household. Insurance companies call this "bundling," and bundling leads to discounts on a policy. While bundling is often the best way to handle your car insurance, there are times when combining coverage with other drivers in your household is not the best move. In some cases, it is better to exclude a driver in your home from your policy. Here are several things to understand about excluding drivers from your policy.
Excluding a Person Requires Naming the Person
A typical car insurance policy covers the car and not the drivers. As a result, you can lend your car to friends and relatives, and your insurance will cover the car and these drivers. If you do not want someone to drive your car and have coverage while driving it, you must name the person on your policy. When you name the person, the insurance company lists them as an excluded driver. The person's name will appear on your insurance documents, and you should never let the person drive your car.
Your Policy Does Not Provide Coverage for the Excluded Driver
When you have an excluded driver, your insurance policy will likely cover anyone that drives your car except the excluded driver. Therefore, if this person drives your car and wrecks it, you cannot file a claim for the damages. You will have to pay them yourself or try to get the excluded driver to pay them.
Reasons to Exclude a Driver
Now that you understand what an excluded driver is, you might be wondering why you would ever list someone as an excluded driver. There are several reasons that people do this, and one is because the person is a high-risk driver. If your elderly grandma lives with you and can barely drive, you might not want to pay for the risks involved with her driving your car. Therefore, you can exclude her from the policy. The result of excluding a driver is lower premiums. If you have her on your policy, you will pay higher rates because of her high-risk status. If you exclude her, her risk level will not affect your rates.
If you name a person as an excluded driver on your insurance plan, you must never let them drive your car. If you have questions about how this works, talk to an auto insurance agent today.
