Removing a driver from your insurance policy is not the same as excluding them. Depending on the state and the insurer, you may be able to include someone you live with as an excluded driver, which means that they won't be driving your vehicles. If the excluded driver has a poor driving history, they may be able to reduce their premium. Excluding them means that the insurance company no longer considers your driving history in its policy.
Uninsured drivers may be covered if they borrow an insured car with the owner's permission. Vehicle owner's insurance may cover damage depending on the coverage and limits of the policy. If the policy does not cover some of the damages or they exceed the limits of the policy, the driver could be held personally responsible for covering any additional damages related to the accident. Excluding a driver from car insurance may seem the same as removing someone from a policy.
However, excluding and eliminating mean different things to an insurance company. As a general rule, insurance companies require that all licensed drivers be listed on their policy. However, it's sometimes possible to use a designated driver exclusion to specifically remove someone from your policy. However, to formally exclude a driver who would otherwise be insured under your policy, you'll need to take appropriate steps with your insurance company.
Matous, who represents nearly a dozen insurance companies, says that insurers often require that the named driver hand in his license first. In addition, in states that allow exclusions, insurers may be reluctant to expose themselves, should the excluded driver use the car anyway. Insurance companies will require that any licensed driver in your household be included in the policy so that they can properly assess the risk of insuring you. Removing someone from your car insurance policy may lower your overall rate, but it depends on several factors related to that individual driver.
Excluding a driver from your insurance policy means that your insurance doesn't cover you under any circumstances. If the driver uses your car frequently or lives in your home, your insurer may determine that they should have added it to your policy as a driver. You can remove a listed driver from your insurance policy if they no longer live with you and no longer drive your vehicle. When you compare car insurance quotes with or without that driver in your policy, you can see that there's a big difference.
In most cases, your insurance can cover the accident, but depending on the limits of your policy and the details of the accident, the driver's insurance policy may cover all or part of the claim. Roommates, for example, are more easily excluded if they own their own cars and have their own insurance.