Have an Excluded Driver on Your Car Insurance? Read This
Car insurance costs are on the rise. According to data from the US Bureau of Labor Statistics, they’re up 11%. This can be attributed to rising repair costs, an increase in especially severe claims, and losses across the insurance industry caused by natural disasters. When considered in conjunction with inflation and recession fears, the cost of car insurance is yet another financial stressor on the average American. Naturally, people seek to reduce their unnecessary household expenses when confronted with circumstances such as these. Cutting insurance coverage may seem like a sound strategy to save in the short-term. However, we here at Malloy Law Offices are all too familiar with the ways this can come back to bite honest, everyday people. Today’s Malloy Law blog post will explain the dangers of an excluded driver on your car insurance policy.
What is An Excluded Driver?
An excluded driver on a car insurance policy is a person who has been specifically named and excluded from coverage under that policy. If the excluded driver operates the insured vehicle and gets into an accident, the insurance company will not provide coverage. This includes liability, collision, or comprehensive benefits.
Not all states allow exclusions of this type and, to be clear, the policyholder needs to specifically state that a given driver is excluded from coverage. So why would you do it in the first place? Well, as we’ve discussed, car insurance costs are on the rise. Everyone needs car insurance (and, as we’ll discuss, having more insurance than just what you need can be a lifesaver) but other, more immediate expenses can often leave consumers with a difficult choice. One of the factors which can quickly raise monthly car insurance costs is the addition of another driver to a policy. Inexperienced drivers, such as teenage children of policyholders, are notoriously expensive to insure. Therefore, some people make the decision to exclude drivers which add additional expenses onto their car insurance payment.
A Hypothetical Excluded Driver Scenario
Let’s take this common example, a household not wanting to shoulder the extra costs that come from insuring a newly-licensed teen driver, and extrapolate it into a realistic personal injury scenario.
Let’s assume a modern sort of family situation, both parents work in support of their multiple children. The oldest has just gained their driver’s license. But family finances prevent them from paying the costs to insure them. Presumably a conversation is had, and the teenage child is given assurances that they’ll be able to drive and take advantage of their new license in the near future. However, as is so often the case in modernity, eventually the lure of convenience proves overpowering. The teenage child can pick up their young siblings from playdates or after school programs. They can help run errands. Soon a Friday night rolls around and after a long workweek, the parents would rather collapse on the couch than make the short drive to pick up the family’s weekly pizza.
Sure enough, the teenager ends up in an accident, and the family is set to learn a very expensive lesson. Regardless of the circumstances involved or the extent of the damage, the terms are very clear; no coverage will be provided by your insurance company. It’s nightmare scenarios like this that make Malloy Law Offices advocate for responsible levels of insurance for motorists of all experience levels. You “never need it” until the day you need it more than anything else.
Legal Knock-On Effects of Excluded Drivers
The issue of an accident involving excluded drivers reaches further than you might expect. For instance, let’s assume that, when our fictional excluded teenage driver left to pick up a Friday pizza for the family, they asked to stop on the way and pick up a friend to bring back to the house with them. This means that when the accident occurs, the excluded driver has a passenger in the car with them. This passenger will also have no coverage for any injuries they may have suffered. This sort of complication is hardly unique and even more can present themselves the deeper you dive into this issue.
How Malloy Law Can Help
If you or a loved one has been victimized by an underinsured driver, Malloy Law may be able to help. Our experienced personal injury attorney team is standing by to evaluate your case free of charge. We’ll seek maximum compensation for your injuries, lost income, and emotional trauma. Contact Malloy Law today and let’s win your case.
