Is an Excluded Driver Banned Forever From Your Insurance?

Question: If the named driver exclusion is signed on the original policy when it is issued, does it need to be signed again at each subsequent renewal?

Answer:  No. Normally, when you have a named driver exclusion as part of your car insurance policy, that exclusion remains active until you request a change to it or the insurance company notifies you of they are discontinuing the exclusion. This is true of policies in California as well as other states that allow a policyholder to exclude a driver from their entire policy or from coverage on a specific car on the policy.

With other types of endorsements, such as one for additional or custom equipment or coverage that has a specific time limit, there may a need for it to be reviewed at each renewal and possibly redone, this isn't usually true with a named driver exclusion.

When you exclude a driver from your full policy, you are agreeing that no policy coverages will be extended if any vehicle is used, driven, operated, or under the control of that listed person.  Typically, you do this because there is a bad driver in your home who would keep you from getting an affordable car insurance policy.

Insurance company guidelines and policy terms vary, but it's standard that a named driver exclusion endorsement remains in effect for not just the term of the current policy term but also for subsequent renewals.

If you have a named driver exclusion on your auto insurance policy, read it over completely.  The wording differs from one policy to the next, but here are some common examples of what it may state:

  • I acknowledge that the named driver exclusion endorsement for the specific driver listed becomes effective and shall remain in effect for the term of the policy and each renewal, reinstatement, substitute, modified, replaced or amended policy.
  • This agreement applies to subsequent renewals or continuations until there is a mutual agreement for its termination.
  • This exclusion shall be effective when signed, and forms a part of the policy when issued.   This exclusion applies to all rewrite or renewal policies unless changed in writing by the insured and the company.  

If the exclusion is ongoing, this means even if you make changes to your policy, such as adding a car or changing the coverages on a listed vehicle, it doesn't create a new policy and thus the named driver exclusion you have will continue and the person listed doesn't have coverage.

If, at some point, you want the excluded driver to be able to operate your cars, you will have to contact your car insurance company to remove the named driver exclusion.  Or, if the excluded driver moves out of your household, then you can discuss with your insurer taking the exclusion off of your policy.

If you have more questions about named driver exclusions and any specific California laws regarding it, contact the California Department of Insurance, the insurance regulator for the state.

The original article can be found at a named driver exclusion continue at renewal?