Car insurance is expensive. Because of that, many people look for ways to lower their premiums.
One option insurance companies sometimes offer is excluding certain drivers from coverage under the policy. While that may reduce your monthly premium, it can also create significant problems if you're not careful.
What Is an Excluded Driver?
An excluded driver is someone specifically listed on your insurance policy as not being covered.
If that person drives your vehicle and causes an accident, the insurance company may deny coverage for the claim. That can expose both the driver and the vehicle owner to significant financial risk.
An excluded driver may also be unable to take advantage of important coverages under the policy, such as collision coverage, rental reimbursement, medical payments coverage, or uninsured/underinsured motorist coverage.
Why Do People Exclude Drivers?
Most people do it to save money.
Insurance companies often consider all licensed drivers living in a household when determining premiums. The more drivers in the household, the greater the perceived risk that vehicles will be shared.
As a result, some families choose to exclude certain household members from coverage in exchange for lower insurance premiums.
On paper, that may sound like a good idea.
The Problem
Life happens.
A vehicle breaks down. Someone needs to borrow a car for work. A family member needs transportation for an emergency.
Even when everyone agrees that an excluded driver will "never" drive the vehicle, situations arise where they end up behind the wheel.
Unfortunately, that is often when people discover the consequences of the exclusion.
If an accident occurs, the insurance company may deny coverage, leaving everyone involved in a difficult position.
Think Before You Exclude Someone
Before excluding a driver from your auto insurance policy, ask yourself one simple question:
Is there any realistic chance this person could someday drive one of my vehicles?
If the answer is yes, even occasionally, the short-term savings may not be worth the long-term risk.
Insurance decisions should not be based solely on the monthly premium. It is equally important to understand what protections you may be giving up.
Questions After an Accident?
Insurance coverage disputes can become complicated very quickly.
If you were injured in an accident involving an excluded driver, or if you have questions about available insurance coverage after a crash, contact Flattmann Law today for a free and confidential consultation.
We represent clients throughout St. Tammany Parish, Tangipahoa Parish, Washington Parish, and communities across the Northshore including Covington, Mandeville, Slidell, Hammond, Madisonville, and the New Orleans metro area.
Call (985) 590-6182 today.
When you hire us, rest assured that an attorney handles your case. Your
file won’t be handed over to a junior attorney or secretary. Communication is a cornerstone of our firm.
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