Are there any loopholes for an excluded driver on a policy, if the owner and policy holder of the insurance was also involved in the accident and in the passenger seat?

My car was parked legally on the street by my home. At 2 am a vehicle hit a moving car and then hit 2 parked cars, 1 of which was mine. The police were involved and a police report was made. The person that hit my car was an “excluded” driver on the car’s insurance policy. However, the owner of the vehicle and the policy holder of the insurance was in the passenger seat at the time of the accident. The driver didn’t have a valid driver’s license to add to this mess.

Asked on September 1, 2015 under Accident Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

An insurance policy is a contract the insurer must pay when and only when the plain terms of the policy/contract requires it to. If the policy plainly excludes a person, then thw insurer does not need to pay for damage that person does--period. That does not mean that you cannot sue the at-fault driver who damaged your car, or the owner of the car which that person was driving car owners are liable, too, if those whom they allow or permit to drive are at fault in an accident--it just means that if you sue and when, the people whom you sued have to pay out of their own pockets, and do not have inaurance to pay for them.

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