Some insurance companies offer policy holders the opportunity to add an excluded driver endorsement to their car insurance. This addition to the insurance policy is designed to specifically deny coverage for damages that may be caused due to an accident to the listed individual.
Why Do Insurance Companies Offer Excluded Driver Endorsements?
Insurance companies operate under the assumption that anyone living in a household who holds a driver’s license will have access to the particular vehicle that is insured. Even if the individual may not drive the vehicle, there is still the possibility that it could happen.
This slight possibility that other individuals may use or operate the vehicle will sometimes cause insurance companies to raise the rates on an insurance policy. Listing the individual as an excluded driver means the quoted rate may be lower because they are excluded coverage under that particular insurance policy.
In the state of Texas, insurance policy holders may have the option to specify which parts of an insurance policy the individual does not receive coverage. An insurance policy holder may be able to specify exclusion from liability, personal injury protection, uninsured motorist protection, or other specific areas of coverage.
How Are Excluded Driver Endorsements Made?
Insurance policy holders that wish to get an excluded driver endorsement for one or more individuals must do so in writing. Most insurance companies will have a form that needs to be filled out.
This form will require the insurance policy holder to list the named individual and specify which parts of the insurance policy will be excluded from that individual. The insurance policy holder will then have to sign and date the form. After this is completed, the insurance company will attach it to the insurance policy and keep it on file.
Individuals interested in purchasing an auto insurance policy that allows excluded driver endorsements should consider getting several quotes. These quotes can be made with or without the excluded driver listed. Receiving several online quotes for insurance coverage will allow drivers to compare different policies from various companies in the hopes of finding the best policy for their insurance needs.