State Farm is one of the largest insurance providers in the United States. If you are a State Farm policyholder, you may be familiar with the term «Driver Exclusion Agreement.» A driver exclusion agreement is a document that allows a policyholder to exclude a driver from their auto insurance policy.
There are different reasons why a policyholder may choose to exclude a driver from their policy. For instance, the excluded driver may have a poor driving record, multiple accidents or DUIs in their record, or they may be an inexperienced driver. In such cases, the policyholder may choose to exclude the driver from their policy to avoid the risk of paying a higher insurance premium.
How Does the Driver Exclusion Agreement Work?
When you exclude a driver from your auto insurance policy, they will not be covered under your policy, and if they get into an accident while driving your car, the insurance company will not pay for the damages or any liability. It is important to note that the driver exclusion agreement applies only to the driver in question, and not the vehicle. This means that if another driver gets into an accident while driving your car, your policy will still apply.
To exclude a driver from your auto insurance policy, a driver exclusion agreement must be signed and submitted to State Farm. You can obtain the form from your local State Farm agent, or you can download it from the State Farm website.
Once you have filled out the agreement, it must be signed by all policyholders and the excluded driver. You should also provide a copy of the driver`s license or other identification to confirm their identity. Once the agreement is submitted, it will take effect after a certain period, usually about 30 days.
Things to Consider Before Excluding a Driver From Your Policy
Before excluding a driver from your policy, there are a few things to consider. Firstly, if the excluded driver is a member of your household, and they have access to your car, you may still be liable for any damages or accidents they cause while driving your car, even if they are not covered by your policy.
Secondly, if the excluded driver gets into an accident while driving another vehicle, you may still be liable if they are found to be at fault. Therefore, it is crucial to ensure that the excluded driver is insured under another policy or has their own insurance.
Lastly, it is important to remember that excluding a driver from your policy may affect the amount you pay for your insurance premium. If the excluded driver is a high-risk driver, your insurance premium may still increase even if they are excluded from your policy.
In Conclusion
The driver exclusion agreement is an important document that allows policyholders to exclude a driver from their auto insurance policy. To ensure that you are protected from any liability, it is important to understand the terms and conditions of the agreement before submitting it to State Farm. Remember to consider all the factors before excluding a driver, and make sure they have their own insurance to avoid any liability.