If you have recently gotten auto insurance, then you know that everyone listed in your household is listed on the application. Your insurance agent may inquire about the names of the individuals living with you, letting you know they are aware of each driver in your household and those who could possibly drive your car. Insurance companies gather this information because individuals living in your household could drive your car, so they present a risk.
What is a Named Driver Exclusion?
With the potential to drive your car, these individuals could be considered when you are quoted insurance. When you live with a high-risk driver, you should consider adding a named driver exclusion to your car insurance policy. A named driver exclusion will specifically name an individual who can’t drive your car, which reduces your risks on your auto insurance policy.
When Does Your Auto Insurance Require a Named Exclusion?
When an insurance company is aware of a risky driver who lives in your household, they may require a named driver exclusion. Your insurance company will require you to sign forms specifically excluding the high-risk driver from your insurance policy. If you don’t, then it’s possible for your insurance company to cancel your car insurance.
What Happens if the Excluded Person Drives Anyway?
After excluding someone from your car insurance, he or she can no longer have the benefit of your coverage. If they drive your car, you and the individual may still be liable for any property damage or personal injury they cause during an accident. In this scenario, you may have to pay for the costs out of pocket.
Although using a named driver exclusion is a great way to limit liability exposure and save on your car insurance, you have to stand behind your decision to do so.
Need to adjust your coverage? Call Knight-Dik Insurance Agency at (800) 286-6353 for more information on Worcester auto insurance.