Understanding Driver Exclusions and Your Car Insurance Policy

When you're looking for an auto insurance policy, it's important to remember that your driving history isn't the only one considered. The insurance company will look at the driving records of every driver in the household, unless you can show that they are otherwise insured or don't have a valid license. The insurance company views every driver as a risk factor because each driver in the house could presumably have access to your car keys. Here's a look at what you need to know about excluding drivers from your policy to save you money.

What are Excluded Drivers?

Excluded drivers are those household drivers listed on your policy as ineligible for coverage under your policy. If your insurance company refuses to cover a particular individual in your household or you ask that a certain driver be excluded from coverage, it means the insurance company will not pay anything if that person gets into an accident in your vehicle.

Why Exclude Drivers?

Since insurance companies rate premiums partially based on your driving history and the risk you pose in claims, someone who is a high-risk driver or who has a lot of accidents may cost you a lot in premiums. And, in some cases, the insurance company may not be willing to extend coverage to that person at all. In these situations, the insurance company may suggest that you list the individual as an excluded driver so that you can keep your policy.

How Long Are They Excluded?

Most exclusions are based on the individual's driving record or other concerns from the insurance company. To determine how long the exclusion is necessary, ask your agent how long the incident will be a consideration. In most cases, insurance companies only look at the last several years of your driving history to rate your policy, so you may be able to cover the individual in a few years.

Having a high-risk driver in your household can be costly for your car insurance premiums, particularly if he or she still has a valid license despite the moving violations or other incidents. Before you purchase a new car insurance policy, take time to talk with an agent like Illinois Automobile Insurance about the exclusion options for that driver and see how their driving history could affect your premiums. The more proactive you are about it, the better your chances will be of getting a policy that's right for you at a price you can afford.