What is an excluded driver endorsement?

An excluded driver endorsement is an additional section that is added to an existing insurance policy that specifically lists individuals who are excluded from coverage by the insurance company. This addition is made at the request of the policy holder and is often done in an effort to lower insurance rates.

There are a number of reasons why an individual may choose to list specific individuals as an excluded driver. These reasons may include:

· Teenage drivers

· Individuals with a suspended license

· Individuals with a bad driving record

· People who have previously made too many insurance claims

Listing an individual as an excluded driver means that they will not have insurance coverage if they choose to drive any car listed on the insurance policy. This means if an accident occur, the excluded driver and possibly the owner of the car could be liable for any medical bills or property damage.

Excluding a driver from an insurance policy is commonly done to save money, but it can also be done to keep an insurance company from cancelling an existing policy. Many insurance companies will issue a cancellation notice to a policy holder if a driver on the policy has a bad driving record or has made too many claims.

If a cancelation notice has been issued, the policy holder may be able to prevent the cancellation by agreeing to list certain individuals as excluded drivers. This will depend upon the insurance company and the reason for the cancellation.

Listing an individual as an excluded driver may be able to help you save money. The independent insurance agents at Smart Way Insurance in Sandy, UT can help you explore the option of having an excluded driver endorsement added to an existing policy.

Is my employee covered by my commercial auto insurance policy, when he uses his own vehicle on the job?

As a business owner who holds a commercial auto insurance policy, you have the protection for yourself and your employees in regards to your vehicles. However, you might be wondering what happens when your employee is conducting official business for you while he is driving his own vehicle.

At any time that your employee uses his or her own vehicle whiles they are on the job, the primary insurance policy that will apply will usually be their own. This will apply to running errands during their lunch break as well as performing tasks for the company like going to business meetings or acting as a document courier for you.

In certain situations, your company’s commercial auto insurance policy will kick in and cover damages, but this is a fairly rare situation. For example, if your employee were to be in an accident that causes catastrophic damage and injures others severely, their own auto insurance might not be enough to cover the damages.

In a case like that mentioned above, if the employee’s liability coverage is maxed out and damages must still be paid, then your commercial auto policy would typically kick in to cover the remainder of the damages.

While the rules above are true for most commercial auto policies, it is important to remember that every state has its own insurance laws and every policy can be unique. Therefore, it is essential that you work with an insurance agent who truly understands your insurance needs and helps you to get all the coverage required.

Our agents provide live comparative quotes online and by phone to help you find the best commercial policy for you. Use our live comparison tool to get free quotes from multiple major carriers at one time online!