Breaking Down OPCF 28A: “Excluded Driver”

Family members, not living in our household, and friends may borrow our vehicles from time-to-time, or swap out driving on long road trips, or take our vehicles out when their own is being repaired. This is commonplace and, yes, auto insurance will typically extend to cover those individuals as well. But what if your occasional driver has limited driving experience, a poor driving record, or is a “high-risk driver?” This will mean you’ll end up paying higher insurance premiums as a result of the increased exposure this driver brings to your vehicle and policy.

To avoid paying higher premiums as a result of this increased exposure, you can add an OPCF 28A endorsement to your insurance policy, which will exclude listed drivers from your coverage. In this blog post, Excalibur will break down what this endorsement is, why you may need it, and how household auto coverage works when you have multiple licensed drivers living under a single roof.

Do my household members automatically have coverage under my auto insurance policy?

So long as you are lending your vehicle with permission, to anyone not living in your household, your vehicle will be covered under your auto insurance policy. Auto insurance companies determine premium based on which drivers will be using your vehicle. This doesn’t mean your neighbour, Steve, who had to take your car for a weekend emergency visit to see his parents a half-hour away – this means regular operators or members of your household.  This may mean a partner or spouse, adult or teenaged children, any relatives living at home, and roommates.

Under a standard auto insurance policy, those living in your household – such as roommates or family members – will be considered “permissive drivers.” They will automatically have coverage when they are driving your vehicle. Auto insurance providers will recognize that it is common for family members to borrow one another’s vehicles. As such, every household member with a driving history and a license will be considered when calculating premiums.

What about drivers of your car who may not be listed on your policy because they don’t typically live with you? Well, they might have coverage in certain circumstances too! Situations include:

• If your family members or friends need to borrow your car while theirs is being repaired
• If you are swapping out with another driver on a road trip or particularly long drive
• If you have family members who visit you but do not frequently stay at your home

These are just some circumstances, but note that the common thread amongst all of them is consent. You must have given your family member, friend, neighbour, whoever – verbal permission to drive your vehicle. They’ll receive coverage according to the terms of your policy.

What constitutes as an “excluded driver?”

An excluded driver is someone who you will intentionally remove from your car insurance policy. They will not be able to drive your vehicle and cannot receive coverage from the vehicle. Often, drivers are excluded because their presence on your policy as a permissive driver is raising 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 will not be able to drive any of the 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.

Why would I need this endorsement?

If there is a licensed driver in your household who’s racking up speeding tickets, getting into accidents, or you have a young driver in your household who has little to no experience and may be impacting your insurance premiums, you can choose to exclude these drivers. Ultimately, the endorsement needs the consent of both participants, so that individual has to consent to not driving your vehicle in order for the endorsement to be valid. But, in circumstances where that driver might not need to drive very much or if you have a young licensed adult who can take the bus to school instead of driving, it’s a great way to save some money.

How does OPCF 28A work?

Basically, if you decide to exclude a member of your household from your auto insurance policy, the driver and yourself will be required to sign an endorsement to confirm the exclusion of this driver. (They will, however, still be covered as a passenger under the terms of your auto policy! They just can’t drive your vehicle, and if they drive and cause an accident – when you were aware they were driving – you both may be held liable!)

When you sign this form, both yourself and the excluded driver will agree that they will not drive the insured vehicle or vehicle(s). For this endorsement to be valid, both signatures must be provided. In addition, with this form:

• The auto insurance policy will not provide insurance for the excluded driver if they are driving the insured vehicle illegally.
  • The auto insurance policy will not provide coverage for injuries or damages that the excluded driver may cause.
• The owner of the vehicle as well as the excluded driver may be held personally liable for injuries or damages as a result of the excluded driver’s actions.
• The excluded driver cannot receive any coverage for most standard accident benefits.