Nov 10, 2020
How To Exclude A Driver From Your Insurance
Your Ontario car insurance generally covers you and anyone living in your household who might occasionally use your vehicle. But what if you have someone living with you that has a poor driving record? They could be driving up your insurance costs, that is, unless you use the OPCF 28 endorsement.
The excluded driver endorsement (OPCF 28, 28A) has been around for many years but was updated by FSCO (now FSRA) to reflect an easier understanding of what it covers.
Previously, there were issues with insurers refusing to offer it as they ended up paying for injuries caused by excluded drivers. Penalties are now clearly laid out, and all insurers now offer the endorsement. Here is what OPCF 28, 28A will change about your coverage and how it will affect an excluded driver.
How Does OPCF 28 And 28A Work?
The policy/vehicle owner will need to sign the government approved OPCF 28 or OPCF 28A form that states both partied agree the excluded driver will not be driving the vehicle. Both owner and driver must acknowledge that the policy will not pay for any damages to property, the automobile, or injuries caused by an excluded driver.
What Does An Excluded Driver Mean?
An excluded driver is someone who you intentionally remove from your auto policy. If that person uses your vehicle (with or without your permission) and is in an accident, your policy will not provide coverage.
This situation may be necessary if you have a driver on your policy who has racked up multiple accidents or tickets. Removing them could help you save money on your premium. Remember, auto insurance covers the vehicle, not who is driving it.
What Does OPCF 28A Cover?
Once the policy owner signs the endorsement, it effectively excludes the driver from their policy. Here is what will happen once the endorsement is in effect :
- There will not be any coverage for accident benefits.
- If the excluded driver is caught driving the automobile, he can be charged with driving without insurance. This could lead to the insurer cancelling the policy.
- The endorsement will not provide insurance covered by the law.
- This endorsement states explicitly that owner and excluded driver will be held responsible for damages or injuries caused while the excluded driver is driving the automobile.
What Is The Difference Between OCPC 28 And OPCF 28A?
OPCF 28 will reduce coverage for a selected driver, and OPCF 28A will completely exclude the driver from coverage while driving.
The key difference is that OPCF 28 will allow for some coverage regarding liability, loss or damage – you can decide the limit and deductible for what is covered. Compared to OPCF 28A, which will remove all insurance that is legally required to drive in Ontario.
Will OPCF 28 Affect My Premium?
By signing the OPCF 28, 28A endorsements, your premium will almost always be reduced since you are removing the cost of coverage for the other driver. The only saving is the monthly or yearly premium being charged for the excluded driver.
However, it is important to remember that your insurer can still factor in any accidents that the excluded driver encountered previously into calculations.
What Happens If An Excluded Driver Gets In An Accident?
If an excluded driver is in an accident while driving a vehicle you own, both of you could be sued by anyone injured in an accident. Your insurer can refuse coverage if the excluded driver drove the vehicle with your permission. It does not matter if the excluded driver was at-fault for the accident.
Add OPCF 28, 28A To Your Policy
Do you want to add OPCF 28, 28A, to your policy? Not sure if you need it? Speak with one of our insurance brokers to help assess your coverage needs.
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