Lending your car to a guest to allow them to run errands is nothing to be concerned about, but if an unexpected incident occurs, you should be aware of what is covered in terms of insurance.
Whether it is covered by auto insurance is a common confusion among people. Continue reading to learn more about auto insurance and how it relates to letting friends or visitors use your car for a few errands.
Does My Car Insurance Cover Someone Borrowing My Car?
When it comes to car insurance coverages, they are built around the vehicle rather than the driver, which means that as long as the vehicle being driven is the one that is insured, it makes no difference who is driving it. However, it is best to confirm this with your insurance provider as sometimes the terms of the plans might change based on the company and the state.
Another crucial point is that liability insurance may only be as helpful in unfortunate collisions if your driver is not at fault. Ensure you opt for collision coverage when getting car insurance to help with such cases.
Does Car Insurance Cover Me When I Borrow Someone Else’s Car?
As was previously mentioned, the car, not the driver, is the focus of the insurance policy. Therefore, if you need to borrow someone else’s car, their auto insurance would come into play. Given that your insurance will not be relevant in this situation, their policy will determine the level you will be protected; this limit is referred to as permissive use.
It is crucial to understand that permissive use differs from being added to the insurance policy yourself, meaning that you might not be as fully covered as a regular driver of the car would be.
Am I Covered When Using a Family Member’s or a Roommate’s Car?
If you live together, you must be included in the policy to be insured entirely when using a family member’s car. It is crucial to note that you will not be protected if you live together but are still excluded from the policy; in this case, it is advisable refrain from borrowing the car.
There needs to be more clarity regarding insurance coverage regarding roommates. It is important to consult with your insurance carrier to find out what is and is not covered when it comes to roommates, as each policy may vary depending on the company. For maximum safety and coverage, it is recommended to have your roommate listed in your policy and you listed in theirs if they frequently use your car or if you often swap cars.
Primary Vs. Secondary Auto Insurance Coverage
Insurance policies start to incorporate primary and secondary coverage as claims become complicated. They begin determining who is primarily responsible for the occurrence and who is secondary, if any.
When you are determined to be at fault, the company will only pay what is referred to as “primary coverage,” but when you are not at fault, the company pays for all damages according to your policy. When you let someone borrow your car or someone else’s car, the insurance becomes ‘primary coverage’ and will only pay for minor damages regardless of who is at fault.
You must have known by now that when a driver is insured or not when they drive someone else’s automobile depends largely on the car owner’s insurance policy and the “permissive use” limit they have established for such situations. If you frequently lend your car to friends or visitors, add additional coverage to ensure their safety while operating it.
Lou Aggetta Can Help You!
Contact our professionals here at Lou Aggetta Insurance Inc. today to learn more about car insurance coverages and obtain the best auto insurance in Pleasant Hills, CA, that meets all your needs.