Does Auto Liability Insurance Follow the Car or the Driver?
Auto liability insurance provides coverage to third parties who are injured or incur property damage as a result of your negligence. In some cases, this coverage can still be in effect when someone else uses your vehicle.
Other People Are Reading
-
Significance
-
Auto liability insurance follows the car as opposed to the driver. This means that if you lend your vehicle to a friend who has no insurance, your policy will still provide coverage if he is involved in an accident.
Effects
-
Even though you were not the driver in the accident, it may still affect your own policy. Your insurance company could elect to add a surcharge to your premium. However, any citation the driver may receive would impact his own driving record.
-
Considerations
-
Coverage under your policy depends on whether you gave the driver permission to use your vehicle. If not, this could be considered as a theft claim by your insurance company. Also, if your own liability limits are inadequate, a driver who borrows your car can usually use her own policy's liability coverage for additional protection.
-
References
- Photo Credit yellow car, a honda japanese sport car model image by alma_sacra from Fotolia.com
