Approximately 1 in 8 drivers have no car insurance, while other drivers have too much auto insurance.
If you have car insurance, do you have enough? Updating your policy each year is an excellent way to ensure that you have enough coverage.
Updating a policy offers an excellent opportunity to ask questions, too, such as, “Does my car insurance cover other drivers?”
This question is a good one to ask if you ever loan your car to your friends or relatives. After all, if this is something you do, you’ll want to make sure you have enough coverage.
Here is a guide that can help you learn the answer to this question so you can make sure you buy the right coverage with your policy.
The General Rule With Other Drivers
As a general rule of thumb, an auto insurance policy protects the car more than the car’s drivers or owners. As a result, your car insurance policy typically covers incidents that occur with the vehicle no matter who is driving it.
Your policy will only offer protection for the coverage types you have on your policy, though. If you have a liability-only plan, it may cover damages caused to other vehicles, but not yours.
If you drove your car and caused an accident with liability coverage, your policy will pay the other driver’s damages. The same is true if you loaned your car to a friend and the friend caused an accident.
It’s also true if you have collision and comprehensive coverage on your vehicle. If you or someone else wrecks your car, your policy will likely cover the damages.
Your insurance policy probably also covers you if you rent a car and cause a collision.
A typical auto insurance policy works this way. Still, there are several other things to know before you assume your policy covers anyone that drives your car and causes an accident.
It Might Depend on Who Causes the Collision
One significant aspect of insurance coverage with collisions is the named person at fault for the event. Who caused the accident? The answer to this question is absolutely vital to insurance companies and may affect how the claim works.
If you lend your car to a friend and someone rear-ends them while they are driving your car, the accident will most likely be the other driver’s fault. In this case, the other driver’s insurance policy should cover the damages.
They should pay for the repairs your car needs, and they might also pay for your friend’s medical bills and other damages.
If the other driver has no insurance, complications might arise. Your friend might seek damages from your insurance policy or his or her own.
Now, imagine that your friend rear-ended another vehicle. In this case, your friend will be the at-fault driver, but who pays the damages? Does your insurance pay it or your friend’s policy?
Your friend should first seek a claim through his or her own policy to see if they will cover it. If your friend did not have sufficient coverage, he or she could file a claim with your company, and your company might pay the damages.
The Person Driving Might Affect the Outcome
Another factor that plays a role in the answer to the question, “Does my car insurance cover other drivers” is the person driving the car.
First, is the person named on your policy as a driver? If so, your policy will cover the damages if you have the necessary coverage.
Second, is the person listed as an excluded driver? If so, your policy will not cover the damages. Excluded drivers are people listed on your policy as those who cannot drive your car.
Suppose you have a friend living with you that has a horrible driving record. Your insurance company might not insure you unless you agree to name your friend as an excluded driver. If you do this, you agree not to let your friend drive your car.
Finally, your insurance company might suggest that the driver of your vehicle seek compensation from their own company first, if they have insurance.
When a person borrows your car and has auto insurance, their policy might cover damages to borrowed cars. Therefore, the person driving might affect the outcome of the claim.
Permission Also Matters
The last factor that plays a role in this is permission. Your policy might cover accidents caused by other people driving your car if you permitted them to drive the vehicle.
On the other hand, they may deny paying the claim if the person drove your car without permission.
If you give someone permission to drive your vehicle, you can assume your insurance company will cover the damages if they wreck it.
You do not have to write a permission letter for this to valid. If you simply tell the person they can use it, your insurance company should have no problem covering the claim.
If someone steals your car and wrecks it, the person obviously would not have permission to use your car.
Therefore, your insurance company might not pay damages to other drivers. If you have comprehensive coverage, though, it will pay for the damages, because this form of insurance covers theft.
If someone wrecks your car that did not have permission to use it, you might have to file a lawsuit against the person for the damages you encounter.
Does My Car Insurance Cover Other Drivers? Call Us to Find Out
Do you still have questions relating to, “Does my car insurance cover other drivers?”
After reading this, do you feel like you need to update or change your policy? Do you have questions about your coverage and whether it’s enough?
If you have any questions about this issue or would like a quote for coverage, call us. We offer auto insurance, home insurance, and many other types of insurance products, and we would love to offer you a quote!
