There are likely several questions that are going through your head right now if you are considering giving a friend temporary use of your vehicle. Does auto insurance cover the driver or the vehicle itself in the event of an accident? Is everyone who resides in your home automatically covered by your homeowner's insurance policy? Is it possible to prevent your insurance company from covering potentially dangerous drivers who also happen to share your household? Do you need to purchase additional coverage for your friends who intend to drive your automobile if you plan to let them?
Before allowing someone else to drive your automobile, you are required to determine whether or not they are covered by insurance. If you are ever unsure about anything, you should consult your insurance agent.
Who Should Be Listed as a Driver on the Registration?
First and foremost, you need to be aware of who is and is not permitted to be mentioned on your auto insurance policy. When it comes to who is required to be registered as a driver, certain insurance companies are more stringent than others. Because of this, the whole procedure can get extremely perplexing. You need to investigate the requirements of your carrier because you could run into difficulties if you willfully omitted a driver from the list who ought to have been included.
The majority of insurance companies require that the following individuals be included on your policy as drivers:
If you want to make sure that everyone living in your house is protected by your auto insurance policy, you need to make sure that they are all listed as drivers.
- Members of the household's immediate family who hold valid licenses
- Residents of the home who hold valid driver's licenses but are not linked
- Anyone who drives your vehicle and is not covered by another insurance policy
Drivers Who Are Always Protected By Insurance
As long as you have given certain drivers permission to use your vehicle, they will be covered by the insurance policy that you have purchased. This kind of use is known as "permissive use." People in your immediate or extended family, friends, or even a boyfriend or girlfriend who does not live with you could fall under this category of drivers.
When you give someone else permission to drive your vehicle, your own auto insurance policy will take precedence in the event of an accident. The driver's insurance will take a back seat in this scenario.
What Should You Do If You Live With Dangerous Drivers?
You might be concerned about the additional costs that would result from having a reckless driver living with you.
Imagine that your very best buddy has decided to move in with you. You enjoy spending time with them very much, but you are not a fan of their driving record. Because your new roommate doesn't have their own vehicle, you've offered to let them use yours. If your friend has a history of traffic violations, adding them to your auto insurance coverage as a driver could cause your premiums to increase. Therefore, in an effort to circumvent it, you avoid adding them as a driver.
When you let a person who resides in your household drive your vehicle but does not designate them as a driver on your insurance policy, you are taking a risk.
If you knowingly failed to reveal a household member who has a history of dangerous driving, your insurance company may reject your claim. This will depend on the requirements of your particular insurance provider.
In some states, certain policies would cover a claim with your roommate as the driver under "permissive use," but you could run into trouble if you didn't give that person permission to use your car. This is because some policies require that you specifically give permission for another person to use your vehicle. Even if they cause an accident and don't have insurance, it's likely that you'll have to pay for the repairs to your vehicle nonetheless.
When adding a new driver to your home, it is important to talk with your insurance agent as soon as possible. This is a solid rule of thumb (whether they just moved in or just got their license). If that individual has a history of reckless driving or other driving infractions, it is in everyone's best interest to have them labeled as an excluded driver rather than not having them listed at all.
What Should a Parent Do When Their Teenager Gets Their Permit?
Once more, this is something that is very dependent on your policy. It's possible that your insurance policy classifies a driver in training as a permissive driver. The listing of licensed teens is all that is required by other carriers. Your insurance agent will be able to tell you whether or not someone who lives with you is adequately protected and, if not, what steps you need to take to modify your policy in order to make that person eligible for coverage.
Residents of your home who drive yet are not connected to you
Figuring out if a driver who is not related to you but lives in your household—such as a roommate, for example—needs to be named on your policy is one of the most difficult tasks. Once more, this is dependent on your insurance provider. Some insurance companies require that every licensed driver in your household be included on the policy or else be disqualified from coverage. Others will prolong coverage so long as the driver in question maintains their individual automobile insurance policy.
It is in your best interest to check with your insurer to ensure that your insurance is set up correctly and that everything is in order.
Drivers Without Insurance
If you lend your vehicle to someone who does not have insurance and that person gets into an accident, you may be held financially accountable for the losses that go beyond what your insurance policy covers.
In the event that an uninsured driver needs to use your vehicle, you should inquire with your insurance agent about the possibility of adding them as a driver.
If the driver in question has recently been convicted of a serious traffic offense, such as driving under the influence (DUI), or has had their license suspended, it is prudent not to let them use your vehicle if they do not have insurance coverage. It's possible that your insurance will ask you to take such a driver off of your policy.
Drivers Who Did Not Qualify
When an individual who is not covered by your policy operates your motor vehicle, you will know beyond a shadow of a doubt that you are not covered.
When an insured individual submits papers indicating that they realize that they will be excluded from coverage on a policy, that driver is deemed to be ineligible for coverage under the policy. It is important that you are aware of any drivers who are not covered by your policy. If an excluded driver causes damage to your vehicle, you are financially responsible for paying for the repairs. Be wary of the people you allow behind the wheel of your vehicle.
Each policy is unique. In order to safeguard yourself against the potential repercussions of incorrectly naming the drivers on your auto insurance policy, it is in your best interest to consult with a reputable insurance agent.
Questions That Are Typically Asked (FAQs)
What exactly does "non-owner automobile insurance" refer to?
A policy known as non-owner insurance is one that a person can get for automobiles that they operate but do not own. This kind of coverage takes effect once the owner's primary insurance policy has reached its maximum limit. Non-owner plans can provide coverage for physical injury, property damage, and a number of additional add-ons that are available on normal auto policies. These add-ons can be purchased separately. If you frequently use a vehicle that belongs to another person, you might think about purchasing a non-owner policy.
What happens if I let a friend borrow my car and that person gets into an accident?
If your friend were to get into an accident while driving your car, your insurance would kick in to pay the damages in accordance with the coverage of your policy. If the amount of coverage provided by your insurance is insufficient to pay for everything, the other driver's insurance will take effect.
What are the repercussions of driving without auto insurance?
If you do not have the minimum amount of auto insurance that is required in your state, you may be susceptible to monetary fines as well as the suspension or revocation of your driver's license. In rare circumstances, the police might even take your vehicle away from you.
Worse, if you or someone else driving your car is found to be at fault in an accident and you do not have sufficient insurance, you may be exposed to significant financial liability for your own injuries as well as the medical bills of any other drivers or passengers involved in the accident, in addition to the cost of any property damage that may have occurred as a result of the accident. You run the risk of being taken to court, and it can be difficult for you to purchase insurance in the years to come. Driving without auto insurance is a gamble that is never worth taking.