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- Coverage is completely removed: A named driver exclusion means zero coverage for accidents caused by the excluded person: no liability, no collision, no medical payments, nothing.
- The car owner remains liable: Excluding a driver from your policy does not eliminate your financial responsibility. If that person drives anyway and causes an accident, you can still be held personally liable alongside them.
- Five states ban them entirely: Kansas, Michigan, New York, Virginia and Wisconsin do not allow named-driver exclusions at all. Several other states specifically ban spousal exclusion.
- Insurers can require them: It’s not always your choice. Some insurers will cancel or refuse to renew your policy unless you agree to exclude a household driver who doesn’t meet their underwriting standards.
- Exclusions survive policy renewals: Once a driver is excluded, they stay excluded on every renewal unless you actively request removal and your insurer agrees.
What is a named driver exclusion on a car insurance policy?
A named driver exclusion — sometimes called a designated driver exclusion or operator exclusion — is a formal endorsement added to your auto insurance policy that specifically removes one person from coverage. The excluded driver is listed by name on a signed exclusion form and from that point forward, your insurance company will not cover any accident that occurs while that person is driving your insured vehicle.
This is different from simply not listing someone on your policy. A named driver exclusion is an explicit, documented agreement between you and your insurer that a specific household member will never drive the insured vehicle. Both you and the insurer sign off on it.
Why would you exclude a driver from your policy?
The most common reason to exclude a driver is cost. If someone in your household has a poor driving record, adding them to your policy can dramatically increase your premium — even if they rarely or never drive your car. Excluding them removes their risk profile from your rate calculation.
Common situations where a named driver exclusion makes sense include:
- A household member with a DUI or DWI conviction on their record
- A family member with a suspended or revoked license
- A spouse or teen driver with multiple at-fault accidents or moving violations
- A household member whose driving record is so poor that the insurer won’t offer coverage unless they’re excluded
- Someone in the home who genuinely cannot drive due to age, health, or disability — and you want to formally confirm that to your insurer
In some cases, the decision is made for you. Insurers can require you to exclude a household driver who doesn’t meet their underwriting standards — or they may cancel your policy entirely if you refuse. This is especially common when a household member has a recent DUI or multiple serious violations.
Sophie’s TL;DRA named driver exclusion eliminates insurance coverage for one person — but it does not eliminate your legal and financial liability if they drive anyway.
What does a named driver exclusion actually mean legally?
This is the part many policyholders misunderstand. A named driver exclusion removes the insurance company’s obligation to pay — but it does not remove your legal liability as the vehicle owner.
Under the legal principle of vicarious liability, a vehicle owner can be held responsible for damages caused by anyone they allow to drive their car. Excluding a driver from your insurance policy and then allowing that driver to use your car anyway does not insulate you from that responsibility.
If an excluded driver operates your vehicle and causes an accident:
- Your insurance company will not pay for property damage, bodily injury, or any other covered loss
- The excluded driver is personally liable for all damages they cause
- You, as the car owner, may also be held personally liable if you permitted or were aware they would drive
- Neither you nor the injured third party will have insurance coverage to lean on — every cost comes out of pocket or through personal legal judgment
Insurance attorneys have noted that driver exclusions don’t always hold up in court, particularly in serious accident cases. Courts can find that an insurer “knew this driver was in the house” and may require the insurer to defend itself even if it ultimately doesn’t have to pay. The financial and legal exposure is real.
One important exception: if the excluded driver takes your car without your knowledge or permission, you can report the vehicle as stolen. In that scenario, depending on your state’s laws, you may not be held liable — and the excluded driver may face criminal charges.
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Which states don’t allow named driver exclusions?
Not every state permits named driver exclusions. Five states ban them entirely because they effectively create uninsured drivers — which most states consider contrary to public policy:
- Kansas
- Michigan
- New York
- Virginia
- Wisconsin
If you live in one of these states, your insurer cannot offer you a named driver exclusion option, regardless of how problematic the household driver may be.
Beyond these five, several other states prohibit exclusions for specific categories of drivers — most commonly spouses. If you and your spouse are on the same policy, some states won’t let you exclude them even if their driving record is seriously affecting your premium. Other states allow spousal exclusions only under limited circumstances or with proof of separation.
Some states require that before you can exclude a household driver, that person must first obtain their own auto insurance policy. This condition ensures the excluded driver isn’t simply left uninsured on the road.
Because rules vary significantly by state and by insurer, the only reliable way to know what’s permitted in your situation is to contact your insurance company directly.
What’s the difference between excluding a driver and removing a driver?
These are two different actions that are frequently confused.
| Action | What it means | Coverage impact |
|---|---|---|
| Removing a driver | Person moves out or no longer has regular access to the vehicle | They can still occasionally drive your car and typically remain covered under permissive use |
| Excluding a driver | Person lives in your household but is explicitly removed from coverage | They are never covered, even in an emergency — no exceptions |
If a household member moves out and no longer has regular access to your vehicle, removing them from the policy is usually sufficient. You do not need a formal exclusion.
A named driver exclusion is specifically for situations where the person still lives with you and has physical access to your car — but you want to formally ensure they are never covered under your policy.
Does excluding a driver affect the excluded person’s own insurance?
Yes, indirectly. Being formally excluded from a policy is typically associated with a high-risk driving history, which is now part of that driver’s insurance record. When they apply for their own separate policy, insurers will see that history and price accordingly.
Some insurers require the excluded driver to show proof of their own coverage before the exclusion is finalized. This ensures they’re not simply left driving uninsured. If an excluded driver doesn’t obtain their own policy and drives your car, they’re effectively uninsured — exposing themselves to fines, license suspension and full personal liability for any accident.
How to add or remove a named driver exclusion
To add an exclusion:
- Contact your insurance company or agent and request a named driver exclusion
- Be prepared to explain why you want to exclude the driver — the insurer will ask
- Complete and sign a driver exclusion form (sometimes called an operator exclusion form or named driver endorsement)
- Some states or insurers may require the excluded driver to sign as well, or to show proof of separate coverage
- Once processed, the excluded driver’s name will appear on your policy’s declarations page with an excluded designation
To remove an exclusion:
- Contact your insurer and request removal of the exclusion
- The insurer will review the driver’s current record before agreeing — they’re not obligated to reinstate coverage
- Expect a potential rate adjustment once the driver is added back to the policy
- The exclusion remains in force on every renewal until you actively remove it — it does not expire automatically
Frequently Asked Questions: Named driver exclusions
What is a named driver exclusion?
A named driver exclusion is a signed endorsement on your car insurance policy that removes a specific household member from coverage. If that excluded driver operates your vehicle and causes an accident, your insurance company will not pay for any resulting damages. The exclusion applies to every renewal of your policy until you formally request its removal.
Does a named driver exclusion protect the car owner from liability?
No. Excluding a driver from your insurance policy removes the insurer’s obligation to pay — but it does not remove your personal legal liability as the vehicle owner. If you allow an excluded driver to use your car and they cause an accident, you can still be held personally liable for all damages alongside the driver under vicarious liability law.
Which states don’t allow named driver exclusions?
Kansas, Michigan, New York, Virginia and Wisconsin prohibit named driver exclusions entirely. Several other states specifically ban spousal exclusions or require that the excluded driver carry their own insurance policy before an exclusion can be added. Always check with your insurer about the rules in your state.
What happens if an excluded driver gets into an accident?
Your insurance company will not cover the accident. The excluded driver will be personally liable for all property damage, bodily injury and related costs. You, as the vehicle owner, may also be held personally liable if you were aware the excluded driver had access to and could use the car. Neither party has insurance protection, meaning all costs must be paid out of pocket or resolved through civil court.
Can a driver be excluded against the policyholder’s wishes?
Yes. Insurers can require a named driver exclusion as a condition of offering or continuing your policy. If a household member doesn’t meet the insurer’s underwriting standards — for example, due to a recent DUI or multiple serious violations — the insurer may tell you to exclude that driver or face policy cancellation. In that situation, the exclusion is the insurer’s requirement, not your choice.
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