excluded driver paying premium and then in an accident

by Guest » Mon Oct 25, 2010 02:18 pm
Guest

excluded driver paying premium and then in an accident

Total Comments: 6

Posted: Mon Oct 25, 2010 03:30 pm Post Subject:

Why would you pay premium on an excluded driver? If premium were paid, then coverage would apply, it seems to me.

Did you have a particular question about your situation? What has the insurance company said? Details???

InsTeacher 8)

Posted: Tue Oct 26, 2010 05:23 pm Post Subject:

As InsTeacher has asked, why would an "excluded driver" be paying premiums? They have no coverage.

Something is missing in the discussion, I think.

Perhaps the question is, "I've been paying premiums on my auto policy. My child is an "excluded driver", but I let him borrow the car, and he had an accident. Will it be covered?"

Answer: NO. A vehicle driven by an excluded driver has no coverage, unless the excluded driver has his own personal auto policy, which would then be primary.

Posted: Tue Oct 26, 2010 05:23 pm Post Subject:

The insurance company is saying they are not going to pay, because there is no coverage on an excluded driver. legally can they do this?

Posted: Tue Oct 26, 2010 07:24 pm Post Subject:

Of course they can do that! You agreed to it when you purchased the coverage and excluded the driver from your policy. The alternative would have been to pay MORE MONEY for your policy's benefits by including that driver.

If you believe that the coverage was misrepresented to you by an agent or the insurance company, then you could consider filing a complaint with your state's Dept of Insurance.

But don't even think of filing a complaint over the exclusion of a driver . . . because that exclusion is disclosed to you in your policy documents. You may not have read your policy to know it. That's a different, and common, problem.

Posted: Wed Oct 27, 2010 12:32 am Post Subject:

In addition, most states, almost all that I can think of, require the policyowner to sign a document attesting to the fact that a driver is excluded from coverage and that the policyowner is aware of that fact that there is no coverage on excluded drivers.

InsTeacher 8)

Posted: Mon Nov 01, 2010 09:51 pm Post Subject:

Some states have attempted to address the issue of excluded drivers. It is a common problem. Individuals do not want to pay the premium that is due for their risk, so instead, they “exclude” a driver from the policy knowing they will drive anyway.

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