How Does Insurance Work if Someone Else Drives Your Car?

With spring break over for some and just around the corner for others I wanted to take a minute and discuss a topic that might relate.

We have had a few incidents at this time of year where someone was driving one of our insured family’s cars and got in an accident. When you lend your vehicle to someone (with your permission) and they get in an accident, your insurance coverage will respond. This means that your liability coverage would provide coverage for the other party’s vehicle damage and injuries as well as coverage to your vehicle provided it has collision. While it is good to know coverage is afforded, it also means that the person who owns the vehicle may have their rates adversely affected due to the accident.

The basic principle to remember with auto insurance is that it runs with the vehicle and not the driver. Someone might be moving a vehicle to get out of a driveway, driving mom to the doctor in her vehicle because it is easier to get in and out of, borrowing a truck to move something, and many other scenarios.

As for the driver, if they have insurance, there is liability coverage provided on their auto liability policy. It would cover the driver on a secondary basis meaning that if the liability limits were exhausted on the vehicle owner’s policy or the vehicle did not have coverage, the driver’s liability policy would respond.

Bottom line especially for your kids and their friends, remember that if someone uses your car that you are ultimately responsible for their action as the driver.

As always, if you have further questions about a specific situation give your agent a call.

Thanks again for the opportunity to protect your families,
Jon