Home Car insurance Car insurance policies What is a named driver exclusion and how does it affect your car insurance? What is a named driver exclusion and how does it affect your car insurance? A named driver exclusion prevents certain individuals from being covered under your auto insurance. If they drive and get into an accident, you will be liable for any damages. View Carriers Please enter valid zip Compare top carriers in your area Written by Matt Reviewed by Ashlee Tilford Ashlee Tilford Ashlee, a former managing editor, insurance, at QuinStreet, is a journalist and business professional. She earned an MBA in 2014 with a concentration in finance. She has more than 15 years of hands-on experience in the finance industry. Updated on: August 12, 2024 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. A named driver exclusion is a provision in an auto insurance policy that explicitly excludes a specific individual from coverage under that policy. This means that if the excluded person operates the insured vehicle and is involved in an accident, the insurance company will not provide any coverage for damages or liability resulting from the incident. The exclusion is typically used when an insurance company deems a particular driver too risky to insure, often due to a poor driving record, a history of accidents, or other factors that might increase the likelihood of a claim. By adding a named driver exclusion, policyholders can avoid higher premiums that might result from insuring a high-risk driver. However, it’s important to understand the implications of such an exclusion. If the excluded driver is caught driving the vehicle, the policyholder could face significant financial consequences, as they would be personally responsible for all costs associated with any damages or injuries. This makes it crucial for policyholders to ensure that the excluded driver does not operate the insured vehicle under any circumstances. How named driver exclusions can impact your auto insurance coverage Named driver exclusions play a key role in how insurance companies manage risk and set premiums. By excluding certain high-risk drivers, such as those with poor driving records or a history of accidents, insurers can offer more affordable rates to the policyholder. This approach allows insurance companies to mitigate potential losses while providing coverage to lower-risk drivers. Named driver exclusions can significantly affect your auto insurance coverage by limiting who is protected under your policy. If an excluded driver uses your vehicle and gets into an accident, your insurance company will not cover any damages or liability. This means you, as the policyholder, would be personally responsible for all costs associated with the incident, including property damage, medical bills, and legal fees. Policyholders should ensure that excluded individuals do not drive the insured vehicle, as any violations could lead to significant financial and legal consequences. Advantages and disadvantages of named driver exclusions The primary benefit of a named driver exclusion is the potential for lower insurance premiums. By excluding a high-risk driver from your policy, you may be able to reduce your overall insurance costs. However, the associated risks can be considerable. If the excluded driver operates your vehicle, you could face a complete lack of coverage in the event of an accident, leaving you vulnerable to substantial financial liability. It’s important to weigh these benefits and risks carefully and to communicate the exclusion to all household members to prevent unauthorized use of the vehicle. When should you consider a named driver exclusion? You should consider a named driver exclusion when you have a high-risk driver in your household whose addition to your policy would significantly increase your insurance premiums. This could be a family member with a history of accidents, traffic violations, or other risky driving behaviors that make them a liability in the eyes of your insurance company. By excluding this individual from your policy, you can lower your overall premium costs, as the insurer no longer has to account for the potential risks associated with that driver. However, if the excluded driver needs to use your vehicle for any reason, even occasionally, you could face severe financial consequences if they get into an accident, as your insurance will not cover any damages or liabilities. Therefore, a named driver exclusion is best suited for situations where the excluded individual has access to another vehicle or where you can ensure they will not be driving your insured car under any circumstances. Clear communication with all household members about the exclusion is essential to avoid unintentional violations that could leave you financially exposed. QuickTake What to do after after the death of a policyholder How to cancel your car insurance policy What to do once you pay off your car loan How to switch auto insurance How to read actually understand your auto insurance policy Rental reimbursement car insurance coverage "Price optimization" puts the screws to loyal car insurance customers The difference between cancellation and nonrenewal of car insurance The consequences of late car insurance payments 12 ways to save money on car insurance Moving and insurance: Checklist for a smooth move Unforgiven: Top 5 reasons your insurance policy will be cancelled Arm in a cast? On pain meds? Maybe you shouldn't drive See more > In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? A complete guide to adding a teenager to your car insurance policy in 2024 What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Used car insurance costs: Most and least expensive models to insure The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to car insurance discounts Proper insurance coverage for college-bound children How to read actually understand your auto insurance policy Car Insurance Companies New driver insurance grace period: What you need to know How much do insurance agents make? Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 On this page How named driver exclusions can impact your auto insurance coverageAdvantages and disadvantages of named driver exclusionsWhen should you consider a named driver exclusion? ZIP Code Please enter valid ZIP See rates