Car Insurance Rules for Someone Else Driving Your Car
Although regulations require automobile insurance for every vehicle licensed in the U.S., not all consumers understand how their policy responds when they lend a car to an individual not listed on the policy.
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Coverage
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Auto insurance applies to a vehicle, not the drivers. The insurance policy purchased for an auto covers the car, regardless of the driver. Vehicle owners can rest easy, knowing that if an accident occurs, their insurance will respond.
Assignment
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No matter who is driving the vehicle at the time of a loss, any at-fault claim will be assigned to the vehicle. The practical implications of this assignment means a claim that occurs while a vehicle is driven by a friend can affect the insurance premium of the vehicle. While the claim will be paid, the owner of the vehicle may see increased premiums because of his friend's misfortune.
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Exceptions
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Most insurance policies specify that a vehicle can be driven only by an operator who holds a valid driver's license. In the event that the individual who borrows the vehicle has had his license suspended for any reason, the insurance company can refuse to pay a resultant claim. It is up to the owner of a vehicle to verify any driver of the vehicle holds a valid license.
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