Let’s say that you are responsible and have auto insurance. But, your husband or boyfriend or wife has a less than stellar driving record. This person is excluded from your auto policy and does not have his/her own policy. This person then causes an accident. What happens?
First, your insurance company will not pay for anything. They excluded the driver for a reason. If you let this person drive your car, there is no coverage.
Second, the other driver may have uninsured motorist coverage. Good for them. Their insurance company will pay what your insurance company would have paid if you had insurance. But wait, that is not the end.
Third, the other person’s insurance company will either sue you and the driver or send you and the driver to collections. Why? In our society, you are responsible for the damages you cause, or the damages someone else causes by driving your vehicle. When that happens, you need to pay for it. If you do not have insurance, you will be held personally responsible.
So the lesson is this: if you have a family member excluded from your policy, make sure they get their own policy before driving your car.