It’s not a rare occurrence that your car is in the mechanic’s shop for repairs and your mother-in-law is offering her car until it is road-ready. Perhaps you’ve come home from college and you’d like to catch up with friends, but you’ve abandoned your vehicle on campus. In any circumstance, would you lend a car to someone else or let anyone borrow your car? Do you have insurance if you did? What happens if they are involved injured in an accident?
As drivers, there are occasions when you might be in the position of driving a vehicle for someone else or loaning your vehicle to someone for a short period. Whatever the situation there are a few things that you must be aware of. Do you (and your car) secured in the event there is an incident? Does your insurance policy follow the vehicle or the driver?
Vehicle Vs. Driver Coverage
It’s not as simple as that. The coverage of insurance differs according to the insurer, and from a policy from policy to policy. In general, there are insurance policies that will be a part of your vehicle or you. Many aspects determine if and in what amount an individual or vehicle is covered. These include the names that are listed on your insurance contract, the state in which you reside, and whether you have permission to drive the vehicle of someone else.
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The insurance on your car will typically include other drivers in your car if they’re included in the insurance policy. This could include your spouse, significant other as well as your parents, siblings, or even your children. Also, it could include others in your household.
For those who are not covered under the policy – such as relatives or friends the question becomes more ambiguous. The extent of coverage in these instances typically depends on the consent of the person who signed it. If you allow other drivers to drive your car without your consent (meaning you’ve told them verbally they can drive the vehicle or gave them keys) generally, they’re covered by the conditions of your policy.
Drivers that are not covered under your policy could be covered in the following scenarios:
If extended family members come to visit you or stay at home.
If you share the driving responsibility for the road or on a long drive.
If family and friends take your car for a ride while theirs is being fixed.
There are some scenarios where certain activities and drivers will not generally be covered by your insurance. This includes:
Most of the time your insurance won’t cover other drivers when they pay to use your car (for example, if you rent the car to a car-sharing company). You’ll likely require an additional, distinct car insurance coverage to take care of this kind of event.
Drivers who are excluded (those specifically identified on the policy as being not covered) generally are not protected when operating a vehicle in the course of the automobile insurance plan. In certain states, excluded drivers might have a limited amount of coverage, but this (and the specific amount of coverage) will vary based on the location you reside in. Check with your auto insurance provider to get advice regarding this.
If you are using your vehicle for commercial use the insurance policy won’t typically be able to cover any incidents that occur when you use your vehicle for this type of purpose. It could be used for vehicles to deliver pizzas, working for a transportation network business that provides car rides or ride-sharing, or providing a catering or delivery service. You will likely require an additional insurance policy or supplement to protect the above-mentioned activities.
If you’re on the insurance policy of the owner of the vehicle policy and you’re covered, you’ll be driving the car, regardless of whether it’s your own. If you’re not listed on the owner’s insurance policy, the applicable coverage will be based on your consent.
If the driver has given your consent to drive the vehicle or at the minimum, it’s reasonable to believe that you were granted permission to drive the vehicle in the first place, then you’re likely protected. If you pay for the use of the vehicle (for instance, you lease it through a rental firm or through a car-sharing service) This generally also constitutes implied permission.
Here are a few scenarios that you could be covered by your auto insurance policy:
Driving the vehicle of your parents with their permission, as long as you’re registered as an exclusion driver in their policy.
You can borrow a car of a family member with the permission of the owner while your repairs.
A car rental from the rental car provider or on the car-sharing marketplace.
Remember that your coverage may not cover a rented and/or borrowed car. Your liability coverage is likely to extend to your vehicle, however, the comprehensive assurance, as well as collision insurance, might not. It’s good news, should you be involved injured in an accident while driving a vehicle you borrowed there’s a good chance that your car insurance coverage from the owner could provide some insurance. It’s a good idea to consult with your insurance company to find out if you’re insured and what the insurance policy’s limits are. It’s the perfect moment to ask about other ways to get peace of mind by taking advantage of additional coverages such as Accident Forgiveness as well as minor violation forgiveness. These are optional coverages that could help you avoid the possibility of a price increase after your first covered accident or minor violations.
Tips for Sharing Vehicles
If you’re looking to regularly or just occasionally – share your vehicles with a driver who isn’t your own, including them in your auto insurance (and reverse) will help make sure that both of you are insured should an accident occur. It is also important to ensure that they’re licensed legally (and that their license isn’t expired).
It is also worth considering supplemental insurance in case you plan to use your vehicle for commercial use or lease it to third parties. This will help safeguard your investment in the vehicle and can also shield yourself from any risk of being sued.
Always ensure that you’ve obtained the express permission of the owner before operating the vehicle. If you drive a car that belongs to someone else, not having the proper permission could create an issue of liability on both sides.
Every Case Is Different
Since each auto insurance policy is unique and therefore, the coverage you get when using a borrowed vehicle (or lending it to someone else) could be very different. It’s contingent on the specific terms in your insurance policy, as well as the location that you reside in, the driver at issue, and the kind of damage you’ve suffered.
When it comes to automobile insurance coverage, you have various coverages that will follow you as the driver, or in your vehicle. This is why having the correct insurance coverage for your car is crucial. Make contact with the insurer to check your coverage and ensure that you have the coverage you require