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.