Named Driver Exclusion

A named driver exclusion is a formal policy endorsement that identifies one specific driver by name and states that your policy does not cover them. It is used to keep a high-risk household member off your rating profile when they cannot be removed from the policy by residency alone. The trade-off is severe: the excluded driver has zero coverage if they drive your car, which means your car, their liability, and the other party all become your personal exposure.

Why insurers offer it

Carriers price household risk, not individual-vehicle risk. If a licensed household resident has a recent DUI, multiple at-fault incidents, or an SR-22, the carrier would normally rate the entire household around that risk. A named exclusion lets the carrier exclude the specific driver from both the rating and the coverage, which keeps your household premium reasonable but transfers the liability back to you personally.

Four legitimate scenarios

1. Adult child with a recent DUI who lives at home. Carrier would surcharge the household 50-100 percent. Exclusion keeps your rate flat; the child buys their own non-owner policy or SR-22.
2. Spouse with an SR-22 at a different carrier. Each spouse keeps their own policy. The household exclusion prevents the SR-22 spouse's rate from bleeding into your policy.
3. Household member who lost their license. Required by carrier if the person is still in the home.
4. Teen with a specific recent incident. Rare but possible; typically a short-term measure until the surcharge ages off.

What the excluded driver loses

• Liability coverage if they drive your car and cause damage.
• Collision and comprehensive on your vehicle (so if they crash your car, you pay the repair).
• UM/UIM, PIP, and MedPay as a listed driver.
• "Permissive use" protection: even a one-off drive is uncovered.

If the excluded driver crashes your car, the other party sues YOU personally for liability (because you own the vehicle) and your policy pays nothing. In no-fault states, PIP may still apply to the other party under the no-fault framework, but the excluded driver remains personally liable for everything else.

States that prohibit or restrict named exclusion

Named driver exclusion is not permitted in:

• Virginia (statutory bar)
• New York (restricted; requires regulatory approval of specific endorsement forms)
• North Carolina (restricted)
• Kansas (restricted)
• Massachusetts (restricted)
• Wisconsin (restricted)

Where restricted, the carrier may offer an alternative structure (e.g., sign-off that the driver maintains their own separate policy). Verify with your state DOI before relying on an exclusion.

How to execute

1. Request the exclusion from your carrier in writing.
2. Sign the endorsement explicitly: most states require both the policyholder AND the excluded driver to sign.
3. Receive confirmation that the exclusion is reflected on your declarations page.
4. Review at every renewal: if circumstances change (the excluded driver gets their license back cleanly, moves out), remove the exclusion.