Usually, car policies will cover damage caused by someone using your car on their own and causing an accident; however, it’s essential to understand how coverage works in other situations.
As a rule of thumb, it’s wise to add anyone who frequently drives or lives in your household to your policy, to ensure they are adequately covered should an accident happen.
Permissive Use
Many standard car insurance policies include a permissive use provision that allows you to loan your car without being listed as the owner on the policy. This option should only be used for short-term borrowing needs, like asking someone else to run an errand; regular users should consider adding them for proper coverage.
Permissive use typically covers drivers who have received permission from the owner to operate the vehicle, whether this permission be expressed or implied. Determining this permission can sometimes be tricky but typically means they must either be related by blood, adoption or marriage or have permanent living arrangements under one roof – either of which would give rise to coverage from insurance. A driver is often considered having this permission when they are either related by blood, adoption, marriage (wives husbands children uncles cousins etc) or living together under the same roof permanently – or have permanent living arrangements under one roof with you under the same roof – usually covered by insurance company regardless. If this person were covered under their insurance company policies they would also likely cover them under their policy!
Your vehicle must only be driven by legally approved drivers; that means obtaining a valid driver’s license and having an impeccable driving history. Permissive use does not apply to illegal activities such as burglary or terrorism; instead it applies only when used legally. If you allow someone with a history of reckless driving or who has been involved in an accident to drive your car without supervision, you could incur claims which reduce coverage limits or even bar them entirely from driving again.
Although most large insurance providers provide permissive use coverage, it’s still wise to check the details of your policy to make sure you’re adequately covered before allowing someone else to drive your car. This may include details regarding type, limits, deductibles and more.
Keep in mind that just because someone has your permission to drive doesn’t mean they will. If someone takes your vehicle without your knowledge without consent or for recreational activities not covered by your policy – theft will occur and is therefore not covered. Your insurance company may try to deny coverage.
Exclusions
Many insurance companies provide the option of excluding specific drivers from a policy. Often this is done due to poor driving history such as multiple moving violations or at-fault accidents; it’s also possible for policyholders to exclude drivers if they no longer wish for someone in their household to drive, which can often save costs. If such an individual were involved in an accident and were no longer covered under their policy’s coverage if involved – damages such as property damage and medical costs might not be covered at all; however most policies come equipped with riders that allow permissive usage by other people within its policy’s boundaries allowing permissive usage by others of permissive usage by others within its policies that allows permissive usage by other users as permitted users; most policies come equipped with rider or exclusion clauses to allow permissive usage by other individuals in addition to allow the policyholder’s policyholder of having permissive use by other people that is covered within their policy’s parameters and allows permissive usage by others allowed within their policy’s parameters of course these usually have riders that allow permissive use by such persons of vehicle policy exclusion clauses provided that allows for permissive usage by other people using their policy’s parameters; these will typically include such terms provided for permissible usage terms of course most have riders or exclusion clauses to allow permissive usage by other than policy clauses clauses to allow permissible uses by such individuals using someone elses using vehicle under certain terms that exclusion clause clause clauses allow or clause allowing permisss clause clause clauses which will provide either way as exclusion clauses which exclude such policy exclusion clauses to allow such use of your policy terms so may allow permiss used other people.
According to state laws and your insurance provider’s policies, it is often best practice to include everyone who lives at your residence as an insured driver in your policy. If any member of your household is an ineffective driver, they should probably also be included as insured drivers on your policy.
Most insurers operate under the principle that accidents should not affect policyholders personally and therefore they only cover vehicles and their owners as a way to mitigate risk and ensure profitability. Policyholders should consider how adding at-fault or reckless drivers into their policy might have financial ramifications; to get an accurate estimation, compare quotes online in order to secure the best rate possible for them.
As soon as a driver is excluded from their policy, it is crucial that their insurer makes this clear to any users of their car. Doing so helps avoid any confusion should an accident arise; otherwise damages caused by excluded drivers may not be covered by your insurer and could create an expensive bill for both excluded and non-excluded parties involved.
Excluded drivers should never operate any vehicles insured under your policy without your express permission, even if they possess their own permission to do so. Individuals wishing to drive one of the excluded driver’s cars should purchase separate auto coverage or have them take out their own personal policy; similarly, excluded drivers should never use your car for routine maintenance such as oil changes.
Named Drivers
Chances are, you have borrowed a car from friends or family on occasion without taking into account whether or not it was insured in your driving. Perhaps you needed to run an errand or transport someone to hospital. Your insurance provider may consider you a “permissive user”, defined as individuals authorized by policyholder to use vehicle. These users usually aren’t included on premium calculations; rather they’re covered under state law should any damage occur from using it.
Add someone as a named driver on your car insurance to allow them to drive it at any time without impacting your rates. Your insurer will require basic details about them such as their name, driving history and any criminal convictions they have had.
Addition of an experienced driver as a named driver is often beneficial for young drivers. Since insurance providers consider newer drivers a greater risk, adding one may help to lower insurance costs. It is essential that any named drivers you name be honest – any attempt at cutting costs by lying about who they are could result in charges of fraud and your policy becoming invalid, fines/points on license may follow, making finding another provider difficult or even impossible.
An insurer may exclude someone entirely from a policy if they have an extensive driving infraction record or accidents, thus leaving them exposed if using their car causes an incident.
One of the primary causes for an exclusion is when someone has been charged with criminal acts such as DUIs. You can learn more about what’s excluded in your policy by reading its exclusion section or by consulting with your insurer directly about any hidden exclusions they may not be aware of.
Uninsured Drivers
Although most states mandate car insurance for drivers, some still opt out. According to the Insurance Research Council, there are over 28 million uninsured drivers in America – and their numbers continue to increase. If involved in an accident with such an uninsured driver, your own policy might provide coverage – provided your policy includes uninsured motorist coverage (UM), with sufficient limits.
Underinsured Motorist (UM) coverage usually includes bodily injuries for you and any passengers as well as property damage for your vehicle, hit-and-run accidents and may provide protection for hit-and-run incidents. Many states mandate UM coverage; in others it’s optional.
Under Insured Motorist (UIM) coverage provides additional compensation in the case of injuries and losses caused by drivers with inadequate auto insurance policies, typically when financing or leasing a vehicle. UIM coverage is sometimes mandatory.
If you are injured by a driver who lacks adequate insurance, filing a lawsuit can be beneficial – though likely unsuccessful without significant personal assets for collection of any judgement awarded against them.
Therefore, filing an uninsured/under-insured motorist claim with your own insurer may be the more prudent solution. Doing so allows the insurance provider to essentially fill in for uninsured/under-insured driver and compensate you for losses sustained as a result of his/her conduct.
Before your car insurance company approves a claim against an uninsured or under-insured motorist, typically bills for medical care and repairs along with copies of police reports will need to be submitted for consideration. If your policy doesn’t already include it, adding uninsured/under-insured motorist coverage at a later date by paying additional premium is another option available to you. For your own best interests it may also be wise to obtain multiple quotes to compare rates and coverage options so as to secure the best policy that fits your individual needs best.
