Car insurance is a necessity for every car owner. While you may want to take the risk of driving your car without insurance, it is highly advisable that you obtain insurance cover to avoid unexpected losses.
Exclusions on your car insurance, is an aspect of insurance that many people are unaware of. Let us discuss in detail what it means, how it works, and when to make use of it.
What Exactly Is Car Insurance Driver Exclusions?
Just as the name implies, it is an element in a car insurance policy that lets a car owner list drivers who will be excluded and not permitted to drive a car covered by the policy.
Ideally, as more members of your family reach the age of driving and obtain their licenses, the number of people covered under your license increase.
When a designated driver who is covered by your policy gets into an accident while driving your car, he/she will not be held liable for the damages and the insurance company will honour your claim.
There are some drivers, however, that may be excluded from your insurance coverage. Being excluded means that they are not permitted to drive your car.
This is an option you will have to be very careful with as it has numerous implications that may not be pleasant in the long run.
How Driver Exclusions Work
Car insurance exclusions can be initiated by the insurance company or the policyholder. In any case, the two parties will have to mutually agree on it before it can take effect.
To exclude someone from a car insurance coverage, the person must be a high-risk individual/driver who is likely to be involved in an accident or cause some damages while driving the vehicle. When such an individual is excluded, he/she is not expected to drive the vehicle.
How Exclusions Affect the Cost of Insurance
When you exclude individuals from your insurance policy, you might be able to save money since the cost of covering more drivers is higher.
Teenagers who are not very experienced drivers, for instance, may cost more to be insured, and when they have a bad driving history, the cost of having them covered in your policy can be even more expensive.
There are also instances where asking for exclusions may cause your premium to increase. Not having a driver listed at all in any part of your policy will cost you less than having him/her listed as excluded.
If an individual is in your household and has proven to be an undisciplined and irresponsible driver, it may be in your best interest to have him/her excluded.
You just have to consider what is more important between paying the extra cost or having to deal with many problems that can arise as a result of the high-risk individual driving your car.
How Long is a Driver Excluded for?
There are different factors that may influence the length of exclusion. If a driver is excluded as a result of bad driving history, there will be a need for the driver to improve his/her driving record before being removed from the exclusion list.
If it is due to a suspended license, the driver must regain the license and build a better record before being included again.
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Who Should be Excluded?
There is no point in listing anyone that has no chance of driving your car. It is normally members of your household and family that you may have to exclude. Elderly people with certain medical conditions that will impede their driving abilities should definitely be excluded from your policy.
If you have a teenage child who has shown signs of irresponsible driving with little regard to law and the rules of driving, you should definitely exclude them.
If you have a friend or a relative staying with you who is unreliable with your vehicle, it will be a wise decision to exclude them from your policy.
How Do You Reinstate an Excluded Driver?
If after listing someone as excluded in your policy, you want to have the person reinstated, the process is less complex than the process of excluding him/her.
You will have to inform your insurance provider. A verification process may be required, but once you have a mutual agreement with your insurance company, the driver will be reinstated.
This a brief guide to explain how exclusions work in car insurance. Should you require exclusions in your policy, contact your insurance broker and they will assist you.