Driver Not Named On Auto Insurance Policy
Reader’s Question:
What will happen if a person gets into an accident while driving an insured vehicle in Houston but he is excluded from the policy of that vehicle?
Amanda
Houston, TX
In general, car insurance companies do not cover persons who are excluded in insurance policies even during the time of an accident. This rule is being practiced not just in Houston, but in other parts of Texas, as well. This is for the reason that only those who are included in the policy have the guarantee to cover future damages and that those who are excluded would have to be personally liable for the incident. This may sound risky especially since the person’s financial liquidity would have to be considered.
So, in cases wherein the excluded driver was found to be at fault, the driver and the owner of the vehicle will both be held accountable for the damages. If the excluded driver is part of the owner’s household, the owner may have to consult with his or her insurance company to see if the excluded driver could be included in the policy so as to avoid the same scenario.
As for the violation, the penalty will only be given to the excluded driver and the incident listed only on his records. Likewise, the incident will not have an effect to the owner’s insurance policy rates since he or she was not the one who caused the accident. However, in a case wherein the other driver is included in the owner’s policy and was found to be at fault, the rates of the insurance policy would likely be affected.
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