Before We Roll Out Of Here
Letting someone else behind the wheel of your car is a big deal. Whether its your spouse, kid, next door neighbor, or college bestie, be sure you fully understand your car insurance coverage, so you can hand them your keys with confidence.
If you want more answers about whats covered by your car insurance policy first, check out our article about car insurance coverages here.
Drive safe!
Do You Need Insurance To Rent A Car
As anyone who has stood at a car rental counter has experienced, its important to know whether you need insurance to rent a car. These arent questions to ponder at the last minute, with the rental car agent ready to add additional daily charges to the rental.
Renters arent alone in their confusion. Some 42% pronounced themselves “thoroughly confused” about insurance coverage when renting a car, according to a survey cited by Lisa Burbank in USA Today.
In general, a personal auto insurance policy does extend to rental cars with the same limits of liability. That includes liability for property and auto damage and collision coverage for rental car damage. The comprehensive portion of the policy takes care of the rental cars damage from non-driving damage, such as hail or theft. Of course, this all depends on the coverages the policyholder chose for the personal auto policy.
What may not be covered by this insurance is the rental car companys loss of use and revenue it claims while the damaged car is being repaired, or a loss in that cars value. Some renters prefer to get the rental car coverage for this reason, as well as to avoid making any claims on their personal auto coverage. Especially when traveling abroad, renters should specifically ask their insurance agents about any available coverage.
Are Other Drivers Driving My Vehicle Covered By My Auto Insurance
If they are mentioned on the policy, your auto insurance will generally cover other drivers using your vehicle.
The situation is more complicated regarding people not covered by your insurance. For example, when someone drives your car with your permission, they are usually covered by the terms of your insurance policy.
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Can I Drive My Friends Car If I Have Insurance
Similar to the scenarios above, if you drive your friends car and get into an accident that was your fault, it most likely will be their auto insurance coverage that will be affected. Remember, even if you have better insurance than them, the insurance usually follows the car. So theyll probably file the claim, pay the deductible and face the potential higher rates. Again, make sure you both are on the same page as far as who will pay the deductible if you get into an accident while driving their vehicle.
What Happens If Someone Gets In An Accident In My Car
If you lend your car to someone and they get into an accident, the protections they have under your insurance depends entirely on how the policy is set up. If your policy allows for permissive use and you have full coverage , then your car will generally be protected under your policy.
If you only have liability coverage, you have no protection for damages to your own car, regardless of who is driving your vehicle. If someone borrows your car and gets into an accident, then your liability would generally extend to injuries or damages to the other party in the accident.
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Does Car Insurance Cover Additional Drivers
In most states, auto insurance will cover damage to a vehicle regardless of who is driving it.
Liability insurance covers the medical costs of injuries, as well as damages to the other driver’s vehicle or property. In general, liability coverage covers you if the car you’re driving belongs to someone else, and your liability coverage may also cover others who drive your car with your permission.
Comprehensive and collision coverage cover damage to your car. Typically, comprehensive and collision insurance cover your car even when someone else is driving. However, that’s not true in all cases, and your policy may include exclusions or limitations of coverage.
If the person driving your car is involved in an accident they didn’t cause, the other driver’s insurance is typically called on to cover the costs of damages and injuries. However, if the person driving your car is determined to be at fault, your insurance company is usually the one tapped to cover the costs. If the costs of the accident exceed the limits of your insurance coverage, your insurer may ask the other driver’s insurance to cover the remaining expenses. However, if the other driver doesn’t have enough coverage to make up the difference, you could be responsible for any additional costs.
You Had Explicitly Excluded The Driver From Your Policy
In some states, you have the option to explicitly exclude anyone from your auto insurance policy. You might choose to do this in the case of people who have bad driving records or a history of drunk driving.
Whatever the reason, if you exclude an individual by name from your policy, your insurance will not cover a claim involving that person as a driver.
However, in New York, you cannot buy an auto insurance policy if you try to exclude a member of your household who is of driving age.
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For More Questions Contact Your Agent
With all of these types of potential damages and coverages, its helpful for policyholders to to verify exactly what their policies cover and what damages trigger auto coverage. Insurance policies vary from company to company. Even within a single company, policyholder choices affect their individual coverage.
Ask an agent what additional coverages are available. Its often much less expensive to add coverage than most consumers realize and over time the saving can be considerable.
Pip Medical Payments And Uninsured/underinsured Motorist Coverage
Personal injury protection insurance, medical payments coverage, and uninsured/uninsured motorist coverage vary greatly from state to state. Some states require certain types of coverage, such as PIP, other states allow drivers to decline certain optional coverages , and still more states dont have any requirements.
The differences between states and policies can make it extremely confusing to sort out financial responsibility when it comes to injuries resulting from a collision. For example, the drivers PIP insurance might cover some medical expenses or other personal injury costs for the driver or passengers, depending on the state and policy. If the driver doesnt have PIP but you do, your insurance may pay for injury costs.
Contact your insurer to learn more about your coverage for injuries and collisions with uninsured drivers, and how it applies to someone else borrowing your car. Ask anyone borrowing your car to check with their insurer, too.
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What Happens When Another Driver Has An Accident In My Car
First, itâs important to note that if your car is stolen and involved in an accident, you will likely not be responsible for any of the damage or injuries that might be caused. However, if you lend your car to another driver, there may be some issues youâll be facing.
In most cases, if your friend drives your car and causes minor damage to your vehicle only, your insurance will likely cover it if you have collision coverage. Thatâs because most policies cover the car and the driver as long as thereâs any reason to believe you consented to allow them to drive it. This would be covered under collision insurance.
Another scenario is if another driver is driving your car and is responsible for a collision that causes a lot of damage, whether itâs to the other vehicles in the accident or if itâs a bodily injury to anyone involved in the crash. In this case, your policy should cover the driver and any passengers in the other car under liability insurance. This will also likely cover damage to the other car in the accident.
If the damage is more than your car insurance policy covers, you may be responsible under certain conditions, or the driver who borrowed your car may have to use their own auto insurance to cover the difference. If the driver in your car is injured, that will need to be covered by personal injury insurance, either yours or their own auto policy coverage.
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Getting Temporary Car Insurance
Temporary, short-term car insurance is available if you need to drive another vehicle for a few days. The cover can be provided for anywhere between one and 28 days.
Some short-term policies cover drivers aged over 21 but usually a driver will have to be 25 or over due to the risks that come with insuring young drivers.
It can be hard to get short-term insurance if you have penalty points attached to your licence. Temporary cover also often has more conditions compared to standard policies.
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Full Coverage Car Insurance Policy
Full coverage car insurance is also known as comprehensive and collision insurance. Comprehensive insurance offers the most coverage of all policies. It also costs the most money. If you have full coverage car insurance, youre covered. When anyone with your permission to drive your car has an accident, the insurance will pay for the damages the driver causes both to your car and to other property if the driver is at fault. So full coverage covers all the damage. Most full coverage policies require you to list the potential drivers of the car, especially if those drivers live with you or are related to you. This makes sense since full-coverage poses the greatest risk to an insurance company. If you do not fully own your car, you will have to have full coverage car insurance. If you owe any amount of money on it and have a regular car payment, your lender will require you to have full coverage.
Can Someone Else Drive My Car
Discover what happens if someone else drives your car and gets into an accident.
There are times in life when we need to let someone borrow our car, but we hesitate allowing them to use it because we don’t know if we can, or if we should. We wonder:
- Can my babysitter use my car to drive my kids to the swimming pool?
- Can my friend drive my car?
- Can my brother-in-law or other family member borrow my car for the weekend?
- Can I drive someone else’s car?
- Will my friend’s insurance cover any damages I cause while driving their vehicle?
- Do irregular drivers need to be added to my policy?
At the heart of it, we want to know, “If we give them permission and they get into an accident, is it covered by my insurance? Is it legal for someone to drive my car who is not on my insurance policy?”
“Generally, it’s not a problem if they’re driving with your consent,” says Jeanne Salvatore, Senior Vice President of Public Affairs and consumer spokesperson for the Insurance Information Institute. “If it’s an occasional use, say I borrow your car to go pick up milk, and as long as permission has been verbally granted, you’ll typically be covered.”
“When you have someone you employ, such as a nanny or a nurse, who will be a regular, additional driver in your household, contact your insurance agent about your policy,” Salvatore recommends. “He or she may need to be added to it.”
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Does The Drivers Insurance Follow The Vehicle
Depending on the sort of coverage you have. Insurance typically travels with the vehicle. The two primary forms of coverage are listed below:
Liability insurance: The driver is covered by liability insurance, not the vehicle. Remember that temporary car use is typically the only thing liability insurance will cover.
Your liability insurance could not protect you if you intend to take out a long-term loan of someone elses vehicle.
Collision and comprehensive insurance: This type of coverage follows the vehicle, not the driver. To ensure that you are protected in the event of an accident, the owner must add you to their list of insured drivers.
This only applies while using a friends or relatives vehicle. Liability insurance is sufficient if you borrow a car from a dealership or rental company.
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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Does My Insurance Cover Another Driver
Knowing what car insurance will cover and what it will not is especially important when it comes to friends driving your car. There is a wide variety of car insurance available to you, each with its own features. Before you let a friend borrow your car, you should know if your auto insurance coverage applies to them. Go through the definitions of the different types of coverage to get an idea of the protection they offer. Then call your insurance company. They will be able to give you a complete rundown of coverage features.
Liability CoverageLiability car insurance coverage follows a driver no matter what car they are driving. Most states require at least liability coverage and many states have assistance programs for low income residents who qualify. Liability coverage is what allows a driver to drive a friend’s car and still be covered under their own auto insurance policy. If you plan to allow your friends to drive your car, one of the questions you should ask is about what kind and level of insurance coverage they already own. Knowing the answer may prevent problems down the line should they be driving your car and an accident occurs.
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Other DriversThe question of allowing other drivers to drive your car and whether or not they will be covered by your existing auto insurance is an important one. Unfortunately, there is no blanket yes or no answer, since this is something that varies from policy to policy.
Can You Get Car Insurance If You Don’t Own A Car
If you dont own a car but borrow your friends car to get around, you may want to explore non-owners car insurance.
Non-owners car insurance is typically an option for high-risk drivers. An insurance company may require buying extra liability coverage to maintain a drivers license. People who frequently borrow cars can also get this coverage.
That way, you have continuous car insurance coverage, which an insurance company looks for when setting rates. If you have a gap of a few years of car insurance coverage, a company may charge you much higher rates than if you always have insurance.
Non-owners insurance costs much less than a standard auto insurance policy. Car insurance companies charge an average of $474 for a non-owners insurance policy.
Also, divers with DUI convictions may be required to carry an SR-22.
An SR-22 is a certificate of insurance for drivers who have been convicted of serious driving offenses, such as DUIs, reckless driving and driving without insurance. A state may require that drivers convicted of those offenses file an SR-22 to keep their license and get behind the wheel.
The average cost of a non-owners policy with an SR-22 after one DUI conviction is $1,752.
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Bodily Injury And Property Liability Insurance
If your friend, grandkid, or roommate borrows your car and injures someone else or damages their property, your auto insurances bodily injury liability or property liability coverage will generally step in to cover the claim. If the claim is higher than your coverage amount and the driver also has insurance, their coverage may make up the difference.
What Is Permissive And Non
Okay, hang with us here. To further explain, its common for car insurance policies to include a clause about who has permission to use your car and who doesnt. But states vary in how they apply these permissive driver laws.
Its common for car insurance policies to include a clause about who has permission to use your car and who doesnt. But states vary in how they apply these permissive driver laws.
In our example, lets pretend your policy doesnt have a permissive use clause in it. Your insurance provider could refuse to pay toward Aunt Carols liability and medical costseven if she wasnt at fault.
On the other hand, if your policy does have a permissive use clause, Carol would be covered. Lets take a closer look at these clauses in detail.
Permissive use is a clause within your insurance coverage that covers drivers who you give permission to drive your car. The permission could just be verbal. It doesnt need to be written down anywhere. And these drivers dont need to be members of your immediate family or live in your household. They could just be a friend . But you must look at your policy first to see if theres a permissive use clause in place. Not all insurance policies include it.
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