If you are looking to purchase a new auto insurance policy, you may not realize that auto insurance companies can all log into a centralized database where they store customer information. One thing stored in this database is the information about who may live at certain addresses. If you are signing up for a policy, one of the questions your auto insurer may ask is whether you wish to exclude a certain driver who lives at the same address as you. This may leave you wondering why an insurance company would ask this question and what it means. Here are a few frequently asked questions about excluding drivers from your auto insurance policy.
What Does it Mean to Exclude a Driver From Your Auto Insurance Policy?
Unless a driver is unlicensed or specifically excluded from an auto insurance policy, your auto insurance company will cover the person driving your car if they are involved in an accident. This means that you can lend your car to your boyfriend, friend, or family member for the day, regardless of whether they have their own auto insurance policy. If you exclude a driver, they are not covered while driving your car.
Why Would You Exclude a Driver?
If you live with someone who has a bad driving record or who has been recently convicted of driving under the influence, your auto insurance rates can increase unless you exclude the driver. The logic behind this is that the driver may borrow your car at some point in time because you live together. Excluding them shows the auto insurance company you have no intention of letting them drive your car. In turn, the insurer will not take their driving record into account when setting the rate for your policy.
What Are the Pros and Cons of Excluding a Driver?
The benefit to excluding a driver from your auto insurance policy is that your rates will not increase because you are residing with a bad driver. This helps keep the focus on your good driving record, instead of someone else's poor record. The downside to excluding a driver is that they can never get behind the wheel of your car. You cannot ask them to back your car out of the driveway or drive you to the hospital in the event of an emergency since they aren't covered by your insurance (unless they have their own).
If an insurance company learns that you are living with a bad driver, they may raise your insurance rates until you exclude the driver from your auto insurance policy. To discuss the specifics of your situation, make an appointment with an insurance agent in your area.
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