A standard car insurance policy normally cover damages caused to the insured vehicle regardless of whether the driver, who was driving the car at the time of an accident, is listed on the coverage or not. A typical state mandated minimum liability insurance cover pays costs for treatment of bodily injuries caused to third party victims, driver of another car or property damages. But few of you may be aware that liability insurance also covers you when you drive another person’s car or other drivers that drive your vehicle.
Nevertheless, you may have to check it out with your insurer if there is any exclusion which applies to the policy. If certain limitations do exist, unlisted drivers might not be covered.
It is also true that all situations are not the same. For example, if someone else, who is driving your vehicle, gets into an accident with another car wherein the other driver is at-fault then the insurance coverage of that vehicle will pay expenses for medical bills for bodily injuries caused to the driver or damages caused to your vehicle car.
However, if the person who is driving your vehicle is at-fault during an accident then it is the insurance company of your car which will pay the resulting costs and that too within your car’s coverage limits. When the costs exceed the limits, your insurer may request the other person’s insurer to cover up for the remaining expenses. But if the other driver is uninsured/underinsured motorist then it is you who will have to bear extra costs towards damages.
It could be tough to decide whether to grant permission or not to a friend or family member to drive your car especially when he/she is not listed on your auto insurance policy. There are several things which need to be considered and so, the best thing to do is review the contents of your policy. It is pertinent to ask such unlisted drivers, who want to borrow your car, some questions for making a decision.
In such a case, if you find yourself in an uncomfortable position, you must not hesitate to say even NO. Remember, many car owners are willing to do such favours to their friends or relatives but seldom do they realize that there is always a probability of your car meeting with an accident. And when such an incident occurs, your finances may be stressed.