Letting a friend or family member drive your car is pretty normal, but what happens if they get into an accident? Does your insurance cover them or does theirs?
The quick answer is yes, your auto insurance may provide coverage when you give someone permission to drive your vehicle. The details can depend on who is driving, how often they use the vehicle, and your specific policy.
Here’s what you should know.
Does Insurance Follow the Car or the Driver?
In many situations, auto insurance follows the vehicle rather than simply following the person driving it.
For example, if you give your friend permission to borrow your car and they are involved in an accident, your auto policy may be the first policy to respond to a covered loss.
However, every situation is different, and coverage depends on the circumstances and your specific policy.
What If a Friend Borrows My Car?
Occasionally lending your car to a friend or family member is different from someone regularly using your vehicle.
When you give someone permission to drive your car, your insurance may provide coverage if they are involved in an accident. Their own insurance may also come into play depending on the situation and the coverage available.
Before handing over the keys, make sure the person has a valid driver’s license and is legally allowed to drive.
What If They Cause an Accident?
If someone you gave permission to drive your vehicle causes an accident, your policy may cover certain damages. The coverage available depends on your policy and its limits.
For example, if they damage your vehicle, you collision coverage may apply if you carry it, and your deductible would generally apply. If they cause damage to someone else’s vehicle or property, your liability coverage may help pay for covered damages up to your policy limits.
What If Someone Regularly Drives My Car?
This is where things can get more complicated.
Occasionally borrowing your car is different from regularly driving it. A household member or regular driver may need to be listed on your policy.
For example, if your child, roommate, or significant other regularly drives one of your vehicles, don’t assume that occasional-use rules apply.
If someone regularly drives your car, let your insurance agent know. They can help determine whether that person needs to be listed on your policy and make sure your coverage is set up correctly.
What If They Have Their Own Insurance?
Having their own auto insurance does not necessarily mean their policy will automatically be the first to pay if they are driving your vehicle.
Several factors can affect how a claim is handled. These include the policies involved, the circumstances of the accident, and the coverage available.
That’s why it’s important to understand your own policy before someone else gets behind the wheel.
The Best Practice: When In Doubt, Ask
If you’re unsure whether someone is properly covered to drive your vehicle, it’s better to ask before handing over the keys.
A quick conversation with your insurance agent can help you understand how your coverage works, whether someone should be listed on your policy, and what to expect if an accident occurs.
At Ingram Insurance, we’re happy to answer your questions and help make sure your auto coverage fits your situation.
Give us a call at (270) 842-3322 if you’re unsure about who should be listed on your policy or what happens when someone else drives your car.
