When Should I Use Exclusions On My Auto Insurance?

If you are purchasing car insurance for the first time on your own, or if you are just looking for strategies to help you save, you may be considering several things like using an exclusion to lower your car insurance rates. Exclusions determine whom you will allow to drive your car, and may not offer much savings.

What Is an Exclusion?

An exclusion is when you tell the insurance that you do not want to have someone on your auto insurance policy. You are telling the insurance agency that you will not let that person drive your car. If you do lend the car to that person, you will be responsible for the costs and repairs for any accidents that happen when that person is driving. Most car insurance follows the car and not the driver, so if you allow a roommate to drive your car, your car insurance will be the one that covers the cost of the accident.

Why Would I Use an Exclusion?

Some car insurance companies require you to list roommates on your car insurance application as occasional drivers. If you have a roommate that has a history of accidents or DUIs, your car insurance may increase your rates. You may want to exclude that person from your car insurance. However, it means you can never let them drive your car, and if they take it without permission, you will need to report it stolen. It is something that you need to take seriously.

Can I Exclude My Spouse?

If your spouse has a driver's license, it is not really possible to exclude your spouse from your policy. You may want to look into other car insurance discounts like discounts through your work or alumni association. CNN recommends combining car and home owner's insurance policies to help you save money on your overall insurance bill. If one spouse has a history of violations, you may see if taking driver's safety classes can help reduce the overall amount of your car insurance bill.

What About Teen Drivers?

You may be tempted to do an exclusion for teen drivers and make them pay for their own car insurance. However, this means that they cannot drive any of the family cars, and the car insurance policy for them would be a lot more expensive. If you want to make your teenagers pay for their car insurance, have them pay the difference in the amount directly to you. You are still teaching your teenagers responsibility while saving them money. 

For more information, contact a service like Kesner Insurance Agency Inc.

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