What’s the difference between exclusion and non-rated drivers on an auto policy?
I’m currently facing some confusion with my insurance agent, who hasn’t been very helpful, and I want to ensure we’re being quoted accurately.
Recently, my dad surrendered his driver’s license, so I informed our agent that we needed to update our policy to reflect this exclusion. However, he claimed that our insurance company (Mutual of Enumclaw in Washington) doesn’t permit exclusions. As a result, he said the policy was “updated,” yet the premium remained exactly the same. When I inquired if my dad being non-rated would lead to a lower premium, the agent backtracked and mentioned he wasn’t sure and would need to check with the insurance company for an “updated updated” quote for the non-rated driver.
I called out the agent on this inconsistency, explaining that our policy hadn’t actually been updated. He argued that since the insurance company doesn’t allow exclusions, the amount wouldn’t change. It just doesn’t add up to me—if my dad can’t drive anymore, why are we still paying the same amount? Am I overreacting, or does it seem like this agent is trying to pull a fast one?
It sounds like you’re facing a frustrating situation! Let’s break down the concepts of exclusion versus non-rated drivers to clarify things for you.
Excluded Drivers: When a driver is excluded from a policy, it means they are not covered by the insurance at all, and the policy explicitly states that any claims involving that driver won’t be covered. Typically, this can lead to a lower premium because the insurer is assuming less risk.
Non-Rated Drivers: A non-rated driver, on the other hand, is someone who is listed on the policy but doesn’t contribute to the risk assessment for the premium calculation. This could be because they don’t have a valid license or because they are not regularly driving the insured vehicle. In some cases, their presence on the policy might not significantly reduce the premium.
In your situation, since your dad surrendered his license, it seems reasonable to ask for an update to reflect this change. The agent’s response about exclusions not being allowed by the insurance company suggests that they only offer non-rated status for drivers who are not eligible to drive. However, it’s unclear why there wouldn’t be a decrease in premium if your dad is no longer a licensed driver.
You’re not crazy to question the math here. If your policy has not been officially updated to reflect your dad’s non-driving status, it stands to reason that you should be paying less. It’s possible that the agent is not providing the clarity you need, or there may be internal policies at the insurance company that they are not communicating well.
To resolve this, consider the following steps:
Documenting everything and remaining persistent will help you advocate for a beneficial resolution. Good luck!