The Insurance Carrier Of The Person Who Lends The Car Only Covers Drivers Specifically Named In The Policy
Usually you would need to explicitly exclude drivers on your policy for them not to be covered . However, there are some insurance companies that need all drivers to be specifically named/included on a policy if they are to be covered.
In general, though, your insurance will cover any person who you’ve given permission to drive your vehicle, including family members living with you and your dependent children away at school.
It is important to note that insurance companies do generally expect any family members living in your household who will be driving your car on a regular basis to be specifically named and included as drivers in your policy.
How Can Those Who Don’t Own A Vehicle Protect Themselves
The Zebra states that those who don’t own a vehicle, but do borrow them frequently, can get non-owner car insurance. This is an insurance that assures that the driver will have liability coverage, which will then cover costs if the damages exceed the limits of the owner’s insurance. It does have its limits as it is a stripped-down type of insurance.
While it may seem like no big deal to lend your car to a friend, it could have serious repercussions if they get into an accident later on. Be sure to thoroughly read your policy to learn which circumstances are covered and when to keep your car to yourself. You don’t want to end up having to pay for the mistakes of other drivers.
How Does Insurance Work If Someone Borrows Your Car
In general,;when;you;borrow a car, you;borrow car insurance, too.;Insurance;follows the;car, not the driver. That means;if;you are involved in an accident while driving;someone;elses;car;, the owner;of;the;car;will probably be held responsible for any financial damages. Your insurance does not come into play.
If we borrow another persons car, its not common for us to say Hey bro, you have insurance dont you? , but its not a bad idea to ask if we want to avoid a pricey Driving Without Insurance ticket.
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Filling Out An Application
You will have to provide some information when you apply for auto insurance. The insurance company uses the information to decide if they will insure you and for how much.
- How you use your car, such as for business, commuting to work, or family trips
- How many miles you drive in a year
- The years, makes, models, and vehicle identification numbers for all cars in the household
- The amount you paid for the car
- The insurance requirements if you have a loan or lease
- How long you have been driving
- The names, ages, marriage status, and driver’s license numbers for all drivers in your household
- The driving record for all drivers in your household including accidents, insurance claims, and tickets for moving violations, but not parking tickets
- Most insurance companies will order a Motor Vehicle Report from the DMVthis is the state’s official record of your accidents, traffic violations, and suspended licenses
Can You Get Car Insurance If You Dont Own A Car
You can still protect yourself as a driver if you dont own a car. If you regularly borrow cars that do not belong to you and you are not listed as a driver on the vehicle owners policy, consider;non-owner auto insurance.
Non-owner auto insurance;basically gives you your own liability coverage if you were to cause an accident while driving someone elses vehicle. A typical non-owner car insurance policy includes;bodily injury liability;and;property damage liability;coverage, which can pay for the injuries and damages you cause while driving a borrowed or rented car. It does not include certain coverages like comprehensive, collision, or towing since the policy is not attached to a specific vehicle.
With this coverage, if youre driving someone elses car and cause an accident where damages exceed the car owners policy limits, non-owner auto insurance can provide liability coverage to cover the difference.
Whether youre a car borrower or someone who lends your car, Direct Auto can help you figure out what kind of auto insurance coverage is best for you. Learn more about our affordable car insurance options or get a free quote by calling; ,;visiting us online, or stopping by one of our;local stores. Were always a quick call, click, or drive away!
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What Is Full Coverage Auto Insurance
Technically, there is no regulated full coverage car insurance definition, and each company will offer slightly different policy options.
Customarily, though, a full coverage policy will include at least your states minimum legal car insurance requirements, as well as comprehensive and collision insurance.;
Comprehensive coverage pays for claims to your car when its damaged in a non-collision loss. This can include weather damage, vandalism, fire damage, and more. There is a deductible associated with this type of policy.;
Collision coverage pays for damage to your car when its involved in a moving collision. This can include hitting a tree or pole. There is also a deductible associated with this type of policy.
Find out the legal minimum auto insurance requirements for your state in the table below.;
Minimum Legal Auto Insurance Requirements by State
Its important that you know what car insurance limits you are required to purchase in order to legally drive on the roads in your state, or else you risk facing some major penalties if you get caught driving without insurance.;
According to the Insurance Information Institute, getting caught driving without insurance can result in fines of up to $5,000, having your license and vehicle registration revoked, and even potential jail time.;;;
You do not have to purchase all of these options for your policy to be considered full coverage.
Who Covers The Accident
This is good to know! You are covered if you borrow your neighbors vehicle. But whose insurance covers the accident?
The insurance follows the vehicle. Their insurance is primary, and the driver of the vehicle may use their insurance secondary.
For example, if your co-worker borrows your vehicle and gets into an accident, your auto insurance liability covers first. If the damages caused exceeds the amount of coverage you have, then the co-workers insurance will pay the excess. But their insurance will only kick in once the owners policy limits are exhausted. Then the driver will be responsible for further damages.
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Indiana Car Accident Insurance Facts
As a rule of thumb, if someone else borrowed your car and ended up in an Indiana car accident, your insurance company will take over as long as they received oral permission from you to take your car. That being said, it must be shown in your insurance records that they were not excluded at the time of getting your insurance from coverage since this will make them responsible for the damage via their insurance.
However, things become a bit complicated if your friend doesnt have insurance. In this case, you will have to handle the costs of damage to cars and other financial consequences arising from the accident. If they do have insurance and yours runs out due to rising costs of the accident, theirs will kick in as secondary insurance.
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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University.Zaneta has prepared technical p…
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If Someone Doesnt Have Auto Insurance Can They Drive My Car
Say your cousin Sally came to town and wanted to take your ride for a spin. Uh oh! She caused an accident and unfortunately Sally doesnt have insurance of her own. Since you granted her permission to drive your vehicle , you could be held liable for some of the damages she caused. If the damages exceed your car insurance limits, the affected party/parties could sue you and your cousin Sally to pay for any medical fees or property damage which may have to be paid out of pocket or from a wage garnishment.
So, keep in mind, if you let someone who doesnt have insurance drive your vehicle, it could be you who is also on the chopping block and paying for damages if they were to get into an accident.
Does Insurance Follow The Car Or The Driver
For the most part, car insurance follows the car listed on the policy. If someone else borrows your car, in a way, theyâre borrowing your car insurance too. At least, that is, if theyâre driving your car with your permission. When someone drives your car with your approval, they are covered under what is called permissive use.
Whenever someone else is driving your car with your permission, yours is the primary car insurance. That means that if your friend, cousin, neighbor, co-worker or other type of pal is driving your car and gets in an accident, your car insurance will cover the damage in much the same way as if you were driving, although coverage for other drivers may be more limited than the coverage when youâre at the wheel.
If the driver who borrowed your car causes an accident, yourliability coverage will pay for damage or injury they caused to someone else. And yourcollision coverage would pay for damage to your own vehicle from the accident. The other driver is only responsible for whatever your auto policy doesnât cover.
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Confirm Your Insurance Before Letting Someone Drive Your Car
Remember, all of this being said, different insurance companies may have different limitations, so its best to check-in with your insurance agent before letting someone else drive your car. That way you know what you may be facing if they were to get into an accident.
You can also check out our auto insurance coverages to ensure you’re protected from the unexpected.
S To Take When An Accident Occurs
Before loaning out your vehicle, its important to thoroughly understand the coverage provided by your insurance policy. If the person isnt covered by your policy, doesnt have his or her own insurance, is clearly intoxicated, or doesnt have a drivers license, dont let him or her borrow your car.
Because Florida is a no-fault state when it comes to car accidents;, drivers are required to carry auto insurance that pays personal injury protection benefits.
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Am I Insured When I Drive Other Cars
Whether or not auto insurance follows the car or the driver is a common question and also a commonly misunderstood scenario.
Let’s say you’ve done your homework and found a good insurance rate for a good policy from a good insurance carrier. You’re a safe driver with a clean record, so your friend lends you their car for the weekend. Or vice versayou lend your safe-driving, clean-record friend your car for the weekend. In the event of a collision: Whose insurance is responsible for covering it? The one who owns the car, or the one who was driving the car?
Generally speaking, auto insurance follows the car instead of the driver. Follows the car, meaning: if you lend your friend your car and your friend gets into a collision, your insurance would cover it, and if your friend lends you their car and you get into a collision, your friend’s insurance would cover it.
However…there can be exceptions to this rule depending on the situation and the type of insurance coverage.
Since it’s easiest, in this case, to spell out the exceptions to the rule, let’s look at the scenarios where the insurance would follow the driver instead of the car.
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When Doesn’t Your Car Insurance Cover Other Drivers
When you explicitly exclude someone from your policy, your insurance company can refuse to pay for any damage following a car accident. Who is and who is not allowed to drive an insured vehicle can vary based on where you live and the company that insures you. In some states such as New York, Kansas, Michigan, Virginia and Wisconsin you cannot exclude a driver from your policy. Auto insurers in those states might not sell you a policy unless you include every person you live with on your policy.
We recommend you read over your own policy, specifically within sections titled “exclusions” and “insured persons.” There you will get a better sense of who can and can’t drive your car, and when your insurance company won’t cover them in case of an accident. For every driver not explicitly excluded, everything we said above will be true.
Does Auto Insurance Follow The Driver Or The Vehicle
There are many variables as to whether insurance will follow the vehicle or if it will follow the driver. Generally, auto insurance will follow the vehicle rather than the driver, but some coverage types follow the driver too. The variables that determine if coverage will follow the driver or the vehicle depend on the insurance laws of the state, the policy type, and the coverage within the policy.
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You Have Insurance But The Car Owner Does Not
As long as you have permission to drive this car, then you should be covered. Your policy extends to this car and covers you the same way as if you were driving your car. Damages you cause to others’ cars, property, or even injuries are covered. If you have collision, damages to the car are covered. Collision is an optional coverage, but most drivers do add it.
Next up: If you’d like to receive payment for the damages, contact your insurance company to file a claim.
See more on what collision insurance covers.
In Pennsylvannia Does Automobile Insurance Follow The Car Or The Driver
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Anamarie Waite Car Insurance Writer
Car insurance usually follows the car in Oregon. The types of car insurance that follow the car in Oregon are bodily injury liability, personal injury liability, uninsured motorist protection, collision, and comprehensive. Youre required to carry bodily injury liability, property damage liability, uninsured motorist protection, and PIP in Oregon. PIP follows the driver, unlike liability coverage.
If you let someone borrow your car and they cause an accident in Oregon, bodily injury liability insurance pays for injuries to the other driver and their passengers. Property damage liability insurance will pay for damage to the other driver’s car. If the person who borrowed your car causes damage that exceeds your coverage limits, their liability policy can act as secondary coverage. But their coverage only kicks in after yours is tapped out.
You wont need to use your PIP or MedPay coverage if someone caused an accident while driving your car because PIP and MedPay follow the driver. You will have to use your collision and comprehensive insurance to pay for damage to your car, though. These optional coverage types pay for your car to be fixed no matter who was driving, but it is a claim on your policy.
Its always a risk to lend your car to someone else, because you could definitely end up filing a claim using your own insurance in Oregon. When someone borrows your car, they also borrow your insurance coverage in most cases.
Does My Car Insurance Cover Other Drivers Who Operate My Vehicle
Your car insurance typically will cover other drivers operating your vehicle if theyre listed on the policy. This may include your spouse or significant other, your parents, your siblings or your children. It also may include other household members.
For others not listed on your policy like friends or extended family members the issue becomes murkier. Whether the policy provides coverage in these situations typically depends on consent. If other people drive your car with your permission , then typically they should be covered under the terms of your policy.Drivers who are not on your policy might also be covered in the following situations:
- When extended family members visit you or stay with you at your home.
- When sharing the driving responsibility on a road trip or a long drive.
- When friends and family members borrow your car when theirs is being repaired.
There are a few scenarios in which certain drivers and activities will generally not be covered by your policy. These include:
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