Florida law requires all drivers to carry a minimum level of insurance in order to be legally roadworthy. Drivers who disregard that law are classified as uninsured motorists and when those drivers cause a wreck, the victims must often turn to their own insurance company for compensation.
In some cases, the question of whether the at-fault driver has insurance is clear-cut. They either have a policy, or they don’t. However, there are some situations in which that answer is somewhat ambiguous, and that often involves categories of drivers that may be “excluded” or “permissive.”
The recent case of Lyons v. Direct General Insurance Company of Mississippi illustrates the issue. In that case, the victim suffered severe injures as a result of a crash while he was a passenger in a vehicle driven by a friend who had been specifically excluded from his mother’s insurance policy.
An excluded driver is one whom the insurance policy holder specifically lists as excluded from the policy. An excluded driver would have no coverage for liability or physical damage when driving the vehicle listed on the car insurance policy from which they are excluded.
There are many reasons why a policy holder might exclude a driver from coverage. In some cases, parents will exclude teens because they don’t want to pay the higher premiums charged for novice drivers. The same logic could be applied to a spouse who got a DUI or another loved one who has a bad driving record.
However, if that excluded driver is operating a vehicle held by the policy holder (which should never happen if that driver is excluded), it is the same as if he or she is driving without insurance and both the driver and owner of the vehicle could be held personally liable for damages.
In the Lyons v. Direct General Insurance Company of Mississippi case the victim sued the excluded driver for damages, ultimately securing a $72,500 judgment against him.
At the time, the driver had been operating his mother’s vehicle. His mother countered that her son was specifically excluded from her insurance policy at the time of the wreck. For that reason, her insurance company refused to pay damages.
The victim sought a declaratory judgment, asking the court to require the mother’s insurer to cover the claim. While he conceded that the driver was excluded from the policy, he argued that the mother’s policy covered damages caused by any permissive driver. A permissive driver is one who is covered under the insured’s policy because they have been given permission to drive the vehicle.
The circuit court, noting the specific policy exclusion naming the driver, granted a summary judgment in favor of the insurance company.
However, upon appeal, the appellate court reversed, finding that the state requires liability insurance for all vehicles operated, and that statutorily, any person using a motor vehicle with the express or implied permission of the owner is covered by the car owner’s policy. The state Supreme Court affirmed.
For those who have drivers listed as excluded on their policy, it’s important to make sure that those individuals do not drive the car for any reason, otherwise the policy holder risks liability, regardless of the exclusion.
If you have been involved in a car accident in the Miami area, contact the Law Offices of Jose M. Francisco for a consultation.
Recommended Articles:
Texting and Driving in Florida: Why it’s Hazardous – and Illegal
Why You Need Uninsured Motorist Coverage For Your Car
Florida Vehicle Ownership – Vicarious Liability May Apply To You
Ambiguous Insurance Language Favors the Injured
Dodge Truck Steering System Nightmare – Airbag And Weld Troubles