excluding drivers on your policy
While a few states (Kansas, Michigan, New York, Virginia, and Wisconsin) don't allow driver exclusions, many others permit you to exclude specific drivers from your policy. In general, car insurance companies may ask you to exclude certain drivers — say, someone with numerous accidents or DUIs — from your policy to protect them from added risk. Or you may decide to exclude a family member, such as a young teenage driver or a spouse with a less-than-stellar driving record and his or her own insurance, to save on your premium.
If an excluded driver takes your vehicle for a spin, with or without your permission, your car insurance will probably not cover the accident if one occurs. Though state laws differ, the following generally applies:
- If an excluded driver borrows the car with your permission and an accident happens, both you and the driver will be personally responsible for any damages caused.
- If an excluded driver takes off with your wheels without your permission and gets into an accident, depending on your state's laws, you might not be held liable if an incident occurs.
- If you live in a no-fault state, you may not be responsible for personal injury, but you and the excluded driver may still be responsible for personal liability. That is, if the injured party's insurance limits have already been reached to cover the accident, he or she could take both of you to court to recover any remaining expenses.
