Accidents could happen to anyone at any time, which is why they’re called accidents. The best thing to do is prepare yourself for one at any moment by having the best insurance coverage for your situation. One of the most distressing and confusing things may be when a friend or family member borrows your car and gets into an accident. It’s important to understand how you are covered if another driver has a car crash while driving your car.
Insurance coverages vary from person to person and car to car, so understanding your current policy is the best thing you can do to make sure everyone who drives your vehicle is covered. You should talk to your insurance agent about specific situations before taking any big risks.
Typically, your car insurance will cover anyone living in your house when driving your car and are part of your policy. However, special exclusions may apply in your policy, especially if that person does not have a driver’s license. In most cases, everyone in your household that can drive will be required to be included on the insurance policy. This may raise your rate, but it also offers more protection in the case of an accident, which may happen at any time.
For those friends and family members who don’t live with you, however, the situation may be different. But don’t worry, in most cases your policy will provide permissive use, which is when you give another driver permission to take your car and your insurance coverage will protect them in the case of an accident. In cases like this, your insurance policy will provide the primary coverage, not theirs.
Car insurance policies should follow the vehicle rather than the driver. This may be confusing, seeing as your policy covers you if you’re renting a vehicle. But if you loan a car out to a driver who is not excluded on your policy, your car insurance is considered the primary coverage provider, and should provide coverage in the case of an accident.
It’s important to remember that you still have a deductible to pay even though your insurance policy will cover the damages. If the damage of the accident exceeds your policy coverage, then the driver’s policy should come in as the secondary coverage provider.
Then again, if you did not permit the driver to take your car and are able to prove it, for example if your car is stolen or used by a friend without permission, then the driver’s insurance would be responsible for all the damages.
No matter what, talk to your insurance agent to make sure that you are covered in these specific cases before taking any risks.