Are unlicensed drivers covered by insurance?

Auto insurance is
essential, both for the driver’s sake and for the protection of accident
victims. But coverage terms can vary from one policy to the next.

In general, an active policy will cover all drivers unless they are unlicensed. There are exceptions to this rule and some policies have built-in exclusion clauses that limit coverage to specific individuals.

It’s always a good
idea to direct these types of questions to your insurance company, as laws and
policies vary from one state to the next. Making hasty conclusions can come
back to haunt you in the end.

Excluding drivers from coverage

Auto insurance companies make money by
charging premiums. In exchange, they agree to cover a set amount of costs,
should the vehicle be involved in a wreck, theft, or another qualifying
incident.

Auto accidents cause a great deal of
harm— both to the passengers as well as to property. To minimize the costs of
paying claims, auto insurance companies either charge bad drivers higher rates
or deny them coverage altogether.

But this can create a problem in situations
where multiple people share the same vehicle. For example, the owner of the car
may enjoy a perfect driving record, while other members of the household may
have points on their record or lack a license altogether.

For this reason, most policies extend
coverage to “permissible” parties, i.e., those who drive the vehicle with the
policy holder’s permission. But this can push the cost of premiums upward, as
the insurer can never be certain that the person operating the vehicle is
trustworthy.

Talk with an experienced car accident attorney for free!

To keep premiums affordable, many states allow insurers to offer exclusion clauses. This means that the policy will not cover certain individuals, whether or not they have a license.

For example, let’s say you own a car
and have a good driving record. But your partner’s license was suspended last
year due to multiple ticket violations. Your insurer might give you a discount
on your premium if your partner is excluded from the policy.

While this can save you a few bucks, it also means that your partner will not be covered, should he or she wreck the vehicle, or harm someone else while using it.

For this reason, you should think long
and hard before agreeing to an exclusion clause. Your agent can give you more
information.

Other considerations

Not everyone who owns an automobile
needs a driver’s license, as strange as that may sound. For example, let’s say that
the vehicle’s owner is ineligible for a license, either due to medical
conditions or advanced age.

In such cases, the owner may hire a licensed
motorist to drive him or her around. This requires a special type of coverage
geared to the situation. An insurance agent can provide the details.

What if an unlicensed driver steals
your vehicle and ends up in a wreck? In such a case, coverage limitations may
apply. If this causes you concern, then you may want to talk to your agent
about adding a rider to your policy that covers this scenario.

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Proving that someone stole your vehicle
can be problematic, especially if the person is a member of your household. For
example, let’s say you have a son who lives with you. You’ve told him that he
is never to use your car, but he does so anyway, totaling it in the process.

Your insurance company will probably
cover the claim. But it will also raise your rates as a result of the wreck. This
is one situation in which the excluded driver option we mentioned earlier may
come in handy.

Insurance companies vary in terms of
their commitment to contractual obligations. If you believe that an insurer is
trying to evade its legal responsibilities, then talk to an attorney right
away.

Contact Douglas & London today

Please remember that the information in this post is intended as an introduction to the topic, not to provide specific advice. Talk to one of our New York City car accident lawyers or insurance agent before making decisions about automobile coverage. At Douglas & London, we’ve secured millions for our injured clients—when third party negligence is to blame, and we are here to help you every step of the way.