Assuming you gave permission for another person to drive your vehicle, their auto insurance should cover them under liability, personal injury protection and collision coverages.
Note that extended family and roommates who will use your vehicle regularly should be included as drivers on your policy, or else they risk being excluded from coverage.
Permissive Use Clause
Permissive drivers in automobile insurance policies vary by company, so it is essential that you carefully read through its terms and conditions to understand its definition. In general, however, it refers to anyone you give permission for driving your car but who is not listed as either household member or related by blood; some policies also exclude drivers using it for business or for transportation (Lyft drivers for instance).
To have them covered under your auto policy, all regular users of your car should be added as drivers on your policy. If someone borrows it often or habitually, it may be more cost-effective to add them as household drivers instead of incurring premiums associated with being permissive users.
Some companies incorporate a step-down clause into their policies which reduces permissive driver liability limits to state minimums – this practice is common among policies without collision coverage.
If your policy includes a step-down clause, this should be clearly communicated on its certificate or booklet. Doing this will eliminate any confusion over who is covered under your coverage.
Permissive use coverage typically only covers third party damages; any physical damage to the insured car will still require you to pay your deductible, regardless of who caused the incident. Therefore, if lending out your car to friends means having enough savings set aside to cover repair costs.
Notably, if someone uses your vehicle and causes an accident while using it, your own policy will apply. If you need assistance understanding what constitutes permissive usage under your policy terms, speak with an agent. For additional car insurance solutions contact Latorre Insurance now!
Liability Coverage
Liability coverage, required in most states, offers protection to you and others if someone is injured while riding your car, in addition to paying damages to other cars and properties. Unfortunately, however, it won’t cover damages to your own car or any medical costs should you cause an accident yourself; thus making it essential that a sufficient amount of liability coverage remains on your policy at all times.
Your policy should provide coverage for you and those living in your household who regularly drive your vehicle – such as spouses, older children and relatives – who drive it regularly. Insurers often require additional drivers be listed who might use your car temporarily – in such instances it is wise to inquire with each insurer regarding any specific rules or policies required of them.
If you let someone borrow your car and they cause an accident that leaves injuries and damages to both themselves and the vehicle, their insurance should take priority. However, if there is evidence they were driving without permission and their behavior was reckless or risky then your policy may allow for filing a claim against them instead.
Be familiar with what coverages are included in your policy and how they could apply in other situations. Most policies provide medical benefits, bodily injury liability coverage and collision coverage – these will typically apply when driving vehicles not owned by you as insureds.
If you live in a no-fault state, your policy should cover expenses for everyone involved – this includes the driver of the other vehicle and their passengers, any repairs needed due to damage done to your own car, as well as medical and repair bills caused by you. Conversely, liability-only states only cover other people’s damages and injuries but won’t protect yourself financially; comprehensive and collision coverage are therefore also worth considering in these instances – they can usually be purchased as standalone options instead of being added onto liability coverage policies.
Comprehensive Coverage
Car insurance policies usually include liability, comprehensive/collision and personal injury protection (PIP/MedPay). If someone regularly borrows your car, consider adding them as a driver on your policy; speaking with an agent will help determine whether this is necessary, taking into account state regulations as well as your own policies.
As long as they reside with you, adding licensed drivers to your own car insurance policy should not present any difficulty. Non-resident family members may also be added, although there may be restrictions that limit how much coverage they are eligible to use. A neighbor who runs errands for you or serves as your kid’s babysitter could possibly also be added, depending on their age and driving record.
One way someone is excluded from your car insurance policy is if they fall within its “permissive use clause.” Drivers omitted from this clause cannot drive your car under any circumstance – regardless of whether they have your permission. A common reason for including someone under this clause is if they have multiple moving violations on their record – keeping these drivers on your policy may quickly increase rates; most drivers find them unwise to retain.
Understanding your policy details and making an informed decision when adding another driver can be daunting tasks, making the task even harder. To be safe, always add any individual who frequently uses your car onto your policy to protect all parties involved – this may increase costs but should ultimately provide greater peace of mind for everyone. For the best result, speaking to your agent may help clarifying those details so you can determine what the best course of action would be for your situation.
Collision Coverage
Collision coverage provides your insurance policy with funds to repair or replace your car in case it’s damaged by covered events, like fire, vandalism and theft. Deciding whether or not to add collision depends on a variety of factors including its value to you as well as whether your repairs can be covered out-of-pocket; for example if it doesn’t cost much to cover repairs out-of-pocket then collision may not be worthwhile for your policy.
Any driver who frequently uses your vehicle should be listed on your policy, whether that’s family members living with or renting from you, roommates, or friends who borrow it regularly or for long-term borrowing purposes. In no-fault states such as North Dakota and Indiana where this does not apply, their insurer might deny claims made on borrowed cars which aren’t listed; to safeguard against this happening again it would be a good idea to discuss non-owners car insurance with your agent and consider getting it.
Car insurance was designed to safeguard your car just like house and medical policies protect people. Should someone drive your car and cause an accident, liability and comprehensive coverage should take care of any damages; similarly if someone else caused the collision themselves – bodily injury/property damage liability coverage will cover their medical bills associated with it as well as costs resulting from it.
Your policy’s fine print should provide all the rules regarding who may drive. In any event, it is wise to double-check with any insurance carrier on this matter prior to allowing someone else to operate your vehicle.
If you have an outstanding loan or lease contract on your car, the lienholder is likely requiring that both collision and comprehensive coverages are in place at all times – regardless of who drives. In such instances, it’s crucial that these coverages remain active regardless of who drives.