Do I Need Insurance to Drive Someone Else's Car?
In most states, auto owners are required to carry insurance on their vehicles as a matter of law. As a result, it might be possible to drive another person's car and still be covered by their insurance policy. The exact determination depends on the particular circumstances involved with the automobile, the insurance policy and the driver in question.
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General Principle of Auto Insurance
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The general principle of automobile insurance is that coverage follows the vehicle. This is why in a household where multiple members might drive the car, each member is named on the policy. This also means that if the car is traded in for a new model, the policy is revised to reflect the new vehicle.
Member of Car Owner's Household
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In a household where multiple members are expected to drive a particular vehicle, each person must be listed on the auto insurance policy. Each potential driver will be evaluated by separate underwriting guidelines. Common factors for varying insurance rates include age, previous driving record and gender.
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Nonmember of Car Owner's Household
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Someone who does not live in the automobile owner's household might be able to drive the car on an occasional basis under the owner's existing policy if the owner grants permission to drive the car. However, the emphasis of that last statement is on the word "occasionally." If the same person drives a car on a regular basis, that person should be listed on the insurance policy and must be subjected to the same underwriting procedures as someone who lives in the household would have to undergo.
Authorized Drivers for Rental Cars
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Rental cars present unique situations. Many rental cars carry what are called Collision Damage Waiver (CDR) coverage for the renter. However, this coverage does not include anyone other than the renter, unless the second driver is included at the time of the renting the vehicle. The second authorized driver must generally meet the same criteria as the original renter. Allowing a second person to drive a rental car without following the proper procedures could subject the renter to heavy financial penalties, especially in the case of an accident.
Accidents
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Because auto insurance policies follow the vehicle rather than the driver, in the case of an accident, the owner's insurance should cover any damage. If the owner does not have adequate or any automobile insurance, the other driver might have uninsured driver coverage that would cover the damage. However, the other driver might subsequently sue the owner and/or the actual driver to be reimbursed for her expenses. In this case, the driver's auto insurance policy, if he has one, would cover the expenses. Otherwise, if the other driver prevails in court, the costs would be paid out of pocket.
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