When purchasing car insurance, you will need to provide a list of eligible and non-eligible drivers for the vehicle you are insuring. There are three types of driver status options in this process: rated, excluded and listed drivers.
A rated driver is a driver who is being considered for the premium rates quoted by the car insurance company. The highest rated driver will be the one who influences the insurance rate the most. The better your driving record, the lower your rate will be as a driver. Insurance companies want to have assurance that they are making a safe investment in insuring you on the road. Therefore, the highest rated drivers on your policy will cause your premiums to increase because they represent the greatest risk. If you have a high-risk driver in the household, you may be better off listing them as an excluded driver so their driving record does not affect your car insurance premium rates.
Those with excluded driver status are those who are not permitted to operate the vehicle at any time. For example, parents may choose this status for their children who have gone away for school. That driver can be reinstated onto the policy upon their return home. If an excluded driver is operating the car and gets in an accident (whether they are at-fault or not), they are declaring the insurance company free from all claim charges. Because it is so expensive to pay for claims without any insurance, an excluded driver must never operate a vehicle.
A listed driver is one who is named on the car insurance policy as being permitted to drive the particular insured vehicle. The listed drivers will appear on your insurance policy and are the only people allowed to operate the vehicle. If a listed driver is at the wheel of the car and gets into an accident, the insurance company will be liable to contribute toward paying the accident claim as outlined in your insurance policy. This sort of coverage is extremely beneficial. Generally, there is a primary listed driver, along with secondary listed drivers. The difference between these is that the primary driver is the person who will be driving the car the most frequently, where as secondary drivers will not be operating the car as often. Secondary drivers are still covered under the insurance policy; however, sometimes you are able to receive a lower car insurance quote if the primary driver has a better driving record.
When choosing your insurance coverage and listing the drivers of your car, consider these three types of driver statuses to be sure you are getting the best rate possible.