There is no denying the fact that having a proper vehicle insurance policy is one of the best ways to protect your vehicle and yourself against financial expenses that are involved in accidental damages.
With that being said, it’s also important to note that not all drivers are fully protected even if they have bought one of the best car insurance policies. This mainly has got to do with other people, including family members and close relatives, who may drive the auto insurance policy holder’s car and cause one or more accidental damages.
These types of scenarios can be confusing, this is especially true for people who are new to buying an auto insurance policy. But don’t worry, we have covered all the basics you need to know about car insurance exemptions and exclusions in this post. Check them out below:
What does it mean to be exempt from car insurance?
In simple terms, being exempt or excluded from car insurance basically means that the owner of the auto insurance policy has excluded you from the policy. This means that you will not be covered by the insurance policy if you drive the insurance policy holder’s car and cause accidental damage. As a result, you will have to cover all the expenses associated with the accidental damage to the car and yourself.
One of the most common and important reasons why many drivers tend to exclude some of their family members and close relatives from their auto insurance policy just to avoid inflated premium rates.
If auto insurance companies find out that you are close relatives and family members have a bad driving record, they increase the premium amount of the policy to a significant extent. In cases where the family members and/or close relatives have a severely bad driving record, the auto insurance company will simply notify you to exclude them within a certain period of time.
How do you remove a car insurance exemption?
If some of your family members and/or close relatives or accidentally or mistakenly removed/excluded from your auto insurance policy, there are several ways how you can remove their exemption.
The most simple way is to update the policy and add the family members and/or close relatives that you want to your auto insurance policy. Do note that this option is only feasible if the family members and/or close relatives that you are planning to include have a good driving record. This is because the insurance company will simply not allow people with a bad driving record or inflate the premium amount to a significant extent.
The second option is to renew the auto insurance policy. You can add your family members and/or close relatives to the insurance policy by renewing it. This step comes as the best option if you are nearing the policy renewal date.
The third option is to pay a higher premium. Auto insurance companies know that giving insurance policy access to bad drivers entails the risk of policy payouts in the event of accidents. As such, they increase the price of the premiums to a significant extent.
If your family members and/or close relatives have a bad driving record yet you still want them to be in your insurance policy, the best option for you is to pay a higher monthly premium. By doing this, your family members and/or close relatives will be covered by the policy if they happen to cause any type of road-related accidental damage to the vehicle that’s registered under the auto insurance policy.