Choosing Excellent Insurance Coverage

What To Do When The Insurance Company Wants You To Exclude A Driver

Auto insurance policies cover the vehicles they were purchased for, which means any damage to the cars or trucks will generally be covered regardless of who is driving them. However, sometimes insurance companies will insist a policyholder exclude a particular driver from being covered. Here's what it means if this happens to your and what you can do about it.

Why the Insurer May Object to a Particular Driver

The reasons an auto insurance company may want you to exclude a driver are the same reasons they may refuse to approve a potential policyholder for coverage: the person has demonstrated he or she is a high-risk driver. Something about the individual makes the insurance company feel there is a higher risk the person will cause an accident, requiring them to pay out on a claim as a result.

For example, new teen drivers are considered a high-risk category for two reasons. First, they have little-to-no experience being on the road. Second, they're at that age where they're more likely to make dumb decisions, such as talking or texting while driving.

It's not surprising, then, that 1 in 5 teens have an accident within the first year of driving and teen drivers are three times more likely to be involved in fatal car crashes. Thus, if you have a new teen driver in your household, your insurance provider may ask that you exclude the person from the policy.

Other reasons the insurance company may want to exclude certain drivers include:

  • Having too many driving infractions
  • Multiple DUI convictions
  • Being too young or too old
  • Having a medical condition that affects the ability to drive
  • Causing one or more severe accidents involving loss of life and major monetary losses

If you agree to the insurance company's demands and exclude the driver, the person will not be covered if he or she gets into an accident while driving your car.

Your Options for Dealing with the Request

It's important to note that the insurance company cannot force you to exclude a driver from your policy. Thus, you can decline to acquiesce to the company's request. However, there may be some consequences associated with that decision. If you choose not to exclude the driver, the company will most likely adjust your insurance premiums accordingly, which means you may be paying a lot more for coverage than you want. Alternatively, the company may refuse to issue you a policy altogether.

So, you can handle this situation in a couple of ways. You can keep the objectionable person on your policy and just pay the higher premium. This may be a good option if you can get the person to contribute to the monthly payment. For instance, if your premium is going to be $300 per month instead of the normal $200, you can have the individual pay the $100 difference.

If the person cannot contribute financially to the higher premium or you just prefer not to charge the individual, the other option is to shop around for a different provider or, alternatively, exclude the person and then find alternative insurance for the individual. Different insurance companies have different levels of risk. Your current insurance provider may find the driver uninsurable, but another company may not have any problem with the person. With so many insurance companies available, you're bound to find one that can offer you a better deal than what you're currently getting.

The third option is to simply wait. If the reason the insurance company objects to the individual is something that will be erased or eased with time, then waiting it out may be a good option. For instance, if many of the speeding tickets the person received will fall off their driving record in six months, then calling to have that person added on after that time passes may result in a better outcome.

For more information about this and other insurance concerns, contact an insurance broker and check out resources like