Another Driver Driving Your Car
Most of us have let a friend or relative borrow our car for various reasons. But what happens if they are involved in an accident while the car is in their hands? Does your insurance cover it, or does theirs? As with most insurance-related items, it varies depending on what state you’re in and what your policy says. The usual case is that any licensed drivers in your home are covered when they drive your car—and are often all listed in your policy. One reason they wouldn’t be covered is if their name is listed under “excluded drivers.” In most cases of loaning your car to someone not in your home, permissive use comes into play, and they’ll be covered by your insurance. This is because insurance policies typically cover the car, not the owner. However, if there’s a more extensive (and thus expensive) accident, the other driver’s insurance would serve as secondary insurance, paying whatever your insurance doesn’t cover. In some states, any family members who are licensed and live in your house can let anyone else drive the car. In other states, the only people who can give permission for someone else to drive it are the person or people who legally own the car. In other words, your 17-year-old daughter could let her boyfriend go off-roading in your SUV in the first scenario but not the second. Also, if someone steals your car and gets in an accident, you won’t be responsible for anything.
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