It is not uncommon for family members to share the household car. Parents, teens, spouses and in-laws may have access to your vehicle from time to time. But what happens when these occasional drivers have a poor driving record or are found to be high-risk drivers? This can mean higher premiums because the policy covers the vehicle, not the driver. To help avoid paying high premiums, you can add an OPCF 28A endorsement to your policy. This add-on rider will exclude these high-risk drivers from coverage. We will discuss what an excluded driver is and how this endorsement can help save you money on your premiums.
Who Is Covered Under My Auto Insurance Policy?
According to thebalance.com, your auto insurance policy extends to anybody who uses your car with your permission. Insurance companies want to know every driver likely to use your vehicle when calculating premiums. This means regularly. Typically, these drivers are people living in your home who have a driver’s licence, including:
- You
- Spouse
- Children
- Relatives
- Roommates
Your family members and roommates are known as “permissive drivers”. This means that they automatically have coverage while driving your car. Auto insurance providers know that it’s common for family members to borrow each other’s vehicles. Therefore, they consider every household member’s driving history (with a licence) when calculating premiums.
Drivers who are not on your policy might also have coverage in the following situations:
- Other family members visiting or staying with you at your home.
- Sharing the driving responsibility on a road trip or a long drive.
- When friends and family members borrow your car when theirs is receiving repairs.
Whether the policy provides coverage in these situations typically depends on your consent. This means you’ve either verbally told them they can drive your vehicle, or you have given them the keys. Usually, they should receive coverage under the terms of your policy. However, you should speak with your isure broker to be sure beforehand.
What is an ‘Excluded Driver’?
An excluded driver in Ontario is someone you ask your insurance company to remove from your car insurance policy. This is done using the OPCF 28A: Excluded Driver form. Once removed from your policy, they will not be able to drive your vehicle and cannot receive coverage for the car. Drivers are often excluded because their presence on your policy as permissive drivers raises your rates. An insurance company can even request the exclusion, depending on the circumstances.
If someone on your policy is considered a “problem driver” or a high-risk driver, they’ll keep adding to your auto insurance rates. Not a good deal for you. Your insurer may even request you remove them from your policy, or else you’ll be paying higher premiums, or the insurance company could cancel your policy for not meeting their underwriting rules. Once that driver is excluded, they cannot drive any vehicles you have insured. It will be illegal if they do. They will also not have any coverage under your policy, so they would be dealt with as an uninsured driver if they were involved in an accident. They would also face any consequential legal expenses.
What Happens When You Exclude a Driver From Your Policy?
When you exclude a driver from your car insurance policy, it means that they are specifically not covered by your insurance if they drive your vehicle, essentially making them considered an “uninsured driver” if they get into an accident while driving your car; this means they will not receive any coverage for damages or injuries caused in an accident and could be personally liable for all costs involved. Key points about excluding a driver:
- No coverage: The excluded driver cannot claim any insurance benefits if they are involved in an accident while driving your car.
- Personal liability: The excluded driver could be personally liable for any damages or injuries caused by an accident.
- Endorsement required: To exclude a driver, you must sign an endorsement on your insurance policy that explicitly names them excluded.
- Passenger coverage: Even if excluded, the driver is still covered if they are a passenger in your vehicle.
If you have someone on your auto insurance policy who is a problem driver, your insurance rates will keep rising. Your auto insurer may want you to remove the driver from your policy or have you pay a higher premium. Excluding the driver means that that individual won’t be able to drive any of your vehicles legally. It also means they will not receive protection under your policy.
If excluded drivers cause an accident while driving one of your vehicles, they’ll be considered uninsured and liable for all damages and injuries resulting from the crash.
If you decide to exclude a household member from your policy, you and your insurer will sign an endorsement to confirm the exclusion. This specific driver will no longer have coverage if they drive one of your cars. However, your policy will still cover them if they’re passengers in one of your vehicles. After receiving the label of an excluded driver, they shouldn’t drive any of the vehicles on your car insurance policy. If they do, it is similar to driving without insurance. In an accident, you and the excluded driver may be held responsible if you know they were driving.
Conditions of the OPCF 28A
By signing this form, you (the vehicle’s owner) and the ED agree that they will not drive the insured vehicle. Both signatures are necessary to validate the form. The form further states that if the excluded driver is operating the vehicle:
- The policy will not provide insurance, which is a requirement by law, for the vehicle;
- The policy will not cover any damage or injuries resulting from the ED.
- The owner of the vehicle and the ED may be personally responsible for damages or injuries as a result of the ED; and
- The excluded driver will not receive coverage for “most Accident Benefits”.
Difference between the OPCF 28 & OPCF 28A
The OPCF 28 and OPCF 28A are Ontario Policy Change Forms related to automobile insurance, explicitly dealing with excluded drivers. Here’s the difference between them:
OPCF 28 – Excluded Driver Endorsement
- This form is used when an individual is excluded from driving a particular vehicle under an insurance policy.
- If the excluded driver operates the vehicle and gets into an accident, the insurance company will not cover any damages, liability, or losses.
- It is often used when an insurer deems a driver too high-risk and the policyholder agrees to exclude them to keep premiums lower.
OPCF 28A – Removing a Named Driver Exclusion
- This form removes a previously excluded driver from an OPCF 28 endorsement.
- It allows the excluded driver to legally operate the insured vehicle again, meaning they will now be covered under the policy.
- This typically happens when the driver improves their risk profile (e.g., a suspended license is reinstated, or a high-risk driver takes a defensive-driving course).
In short, the OPCF 28 adds an exclusion (someone cannot drive the vehicle), while an OPCF 28A removes the exclusion (someone can now drive the car again).
How Will This Endorsement Affect The Cost Of My Policy?
The main reason policyholders remove household members from their auto policy with an OPCF 28A is that their poor driving record and infractions while using your car results in high premiums. An OPCF 28A typically reduces the car owner’s insurance premium. High-risk drivers usually include young drivers or those with convictions and/or at-fault accidents on their record.
An excluded driver is essentially someone who is driving without insurance. So, if they take your car out and police pull them over, it may cost the car owner (you) and the driver up to $50,000 in fines. Additionally, there can be licence suspensions and even vehicle impoundment!
Why You Should Add An OPCF 28A to Your Policy
Car insurance companies may insist on exclusions for specific drivers, particularly if:
- They have DUIs (Driving Under the Influence charges)
- A driver has a licence suspension
- They are high-risk drivers
What Happens If Your Insurer Discovers the Excluded Driver Is Still Driving Your Car?
If your insurance company discovers that the excluded driver has been driving the vehicle, the insurance company has the right to cancel your policy. The insurance company may also refuse to renew the policy because there has been a breach of contract. Should this happen, it can make it much more difficult (and expensive) for you to obtain another motor vehicle insurance policy.
Living with someone that has a poor driving record? Be prepared to pay higher premiums. Your insurance company may also ask you to exclude them from your car insurance policy. If you aren’t happy with your insurer’s rate increase, you should find another carrier offering a better deal. We may find you an insurer that may not require the exclusion or offer more affordable rates to the high-risk driver in your household.
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