What Happens if an Excluded Driver Gets in an Accident

Thursday, August 1, 2024

What Happens if an Excluded Driver Gets in an Accident

Written by Malman Law, reviewed by Steve J. Malman.

What happens if an excluded driver gets in an accident? An excluded driver is someone specifically not covered by an insurance policy. If they have an accident while driving a vehicle they’re excluded from, it could create problems for resulting claims. This is simply because the insurance might not pay for damages, which means the owner is left responsible for damages.

Legally, it could lead to lawsuits and costly expenses. Luckily, a car accident lawyer could assist you by navigating the legal process, representing your interests, and finding ways to obtain settlements.

If you have been injured in an accident involving an excluded driver, the auto accident lawyers at Malman Law are ready to protect your rights to legal recovery.

What Is an Excluded Driver?

An excluded driver is someone who isn’t covered by a car insurance policy, even though they might live in the same house as the person who owns the car. This means if the excluded driver uses the car and gets into an accident, the insurance company won’t pay for any damage or injuries.

For example, let’s say your older brother has had many speeding tickets. Your parents might decide to exclude him from their car insurance to keep the cost down. This means he’s not allowed to drive their car at all.

What Are the Reasons for Excluding Drivers?

Most people exclude drivers to save money on insurance premiums. Insurance companies charge higher premiums when risk factors, like accidents or traffic violations, are present.

For instance, if a driver is at fault for an accident in Illinois, they may end up paying up to 53% more on insurance rates. So, by excluding high-risk drivers from the policy, the overall risk decreases, and the policyholder is awarded a lower premium.

Also, excluding drivers helps prevent a policy from being canceled altogether, which is more likely in certain scenarios. In Illinois, policies can be canceled for various reasons, including a significant increase in risk. If a high-risk driver causes multiple accidents or receives numerous traffic violations, the insurer might decide to cancel the policy to mitigate their own financial risk. By excluding high-risk drivers, therefore, policyholders can reduce the likelihood of these scenarios and maintain their insurance coverage without interruption.

Additionally, some parents or guardians opt to exclude teen drivers. It’s a way for them to deny teens driving privileges and avoid potential risks associated with inexperienced drivers.

Excluding vs. Removing Drivers From Car Insurance

What’s the difference between excluding a driver and removing them from car insurance? They sound similar, but they’re not the same thing.

  • Excluding a driver means the person still lives in your house, but they are specifically not covered if they drive the car. The insurance company knows about this person and has agreed not to cover them.
  • Removing a driver means the person doesn’t live in your house anymore and is completely off the policy. The insurance company doesn’t consider them at all.

For example, if your sister moves out to go to college, she might be removed from the policy. But if your cousin with a bad driving record comes to live with you, he might be excluded from the policy.

Consequences Of An Excluded Driver Accident

What happens if an excluded driver uses the car anyway and gets into an accident? This can lead to big problems:

  • The insurance company won’t pay for any damage to your car
  • They won’t pay for damage to other cars or property
  • They won’t pay for anyone’s medical bills
  • The excluded driver might have to pay for everything out of their own pocket
  • The car owner might get in trouble for letting an excluded driver use the car

Insurance Coverage Options After an Excluded Driver Gets in an Accident

When an excluded driver gets into an accident, it can leave the car owner in a tough spot. One option to consider is uninsured motor vehicle coverage. This type of insurance helps cover costs if the accident involves a driver who doesn’t have insurance or if the accident is a hit-and-run. It can help pay for things like medical bills and car repairs.

In Illinois, car owners are required to possess an uninsured motorist of least $50,000 per accident and  $25,000 per person. This means having uninsured motor vehicle coverage can give peace of mind, even after an accident involving an excluded driver. However, you will still need to have a legal advocate by your side. They will represent your rights properly and ensure you receive compensation that reflects your losses.

Can an Excluded Driver affect the Overall Cost of my Insurance Premiums?

You might think that excluding a risky driver would always make your insurance cheaper. But it’s not that simple:

  • Excluding a driver means the person still lives in your house, but they are specifically not covered if they drive the car. The insurance company knows about this person and has agreed not to cover them.

Excluding a high-risk driver can often lower your premium, which is the amount you pay for insurance. However, insurance companies might worry that the excluded driver will use the car anyway. If you have only one car and exclude the only other driver in the house, the insurance company might think that’s suspicious and could raise your rates.

  • Removing a driver means the person doesn’t live in your house anymore and is completely off the policy. The insurance company doesn’t consider them at all.

Sometimes, having fewer drivers on a policy can actually make it more expensive because the risk is spread out over fewer people. For instance, if your sister moves out to go to college, she might be removed from the policy. But if your cousin with a bad driving record comes to live with you, he might be excluded from the policy.

Do Excluded Drivers have any Recourse if They Believe They were Unfairly Excluded from a Policy?

If someone thinks they were unfairly excluded from a car insurance policy, they do have some options:

  • Talk to the policyholder (like your parents) and ask why you were excluded
  • Ask the insurance company to explain why you were excluded
  • Look for your own insurance policy instead of being on someone else’s
  • Improve your driving record to show you’re less risky
  • In some cases, you might be able to file a complaint with your state’s insurance department

For instance, if you think your parents excluded you from their policy by mistake, you could ask them to talk to the insurance company. Or if you’ve had a clean driving record for a few years, you could ask to be added back to the policy.

If you’re thinking about excluding someone from your car insurance, talk to your insurance company first. They can explain exactly what it means and how it might affect your policy.

Contact an Illinois Car Accident Attorney Today

Handling a car accident involving an excluded driver can be very challenging. This is especially true if the driver causes substantial property damage or severe bodily injuries. In such cases, the legal knowledge of a personal injury attorney can not be underestimated.

Our team has represented many clients in challenging situations like these and have won substantial amounts in settlements. Don’t wait any longer;  take the first step to secure your right to compensation. Call our experienced auto accident lawyer today to schedule a free case evaluation.

Steve Malman

Malman Law’s founder Attorney Steven Malman has over 30 years of experience handling personal injury, nursing home, medical malpractice, truck accidents, car accidents, premises liability, construction, and workers’ compensation cases in Chicago, IL.

Years of experience: +30 years
Justia Profile: Steve Malman
Illinois Registration Status: Active and authorized to practice law—Last Registered Year: 2024

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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by President and Founder, Steven J. Malman who has more than 20 years of legal experience as a personal injury attorney.

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