Car Insurance Coverage When Others Drive: What to Know

Should you let a neighbor or friend borrow your vehicle for a short while, your auto insurance will likely cover you while they have the care. So long as you gave the friend permission to use your car, your comprehensive, collision and liability coverages will all remain in effect -- although your neighbor will probably ultimately be held responsible for any accidents they cause.

In the event that your neighbor does cause an accident, your insurance policy will pay any damage and claims filed against you. The company that underwrote your policy might then seek compensation from your friend's own insurance policy, but you won't have to pay claims regardless of whether your policy or your neighbor's ultimately covers the injuries and damages.

When you give your car to a friend for a longer period of time, whether your auto insurance coverage applies to the situation depends on the terms and conditions of your policy. 

Policies are underwritten based partly on where a vehicle is stored when it's not in use and who the main people operating the vehicle are. If these change because your friend is driving your vehicle most and parking it at their house, your insurance company needs to be notified of the changes. Failure to notify your insurer might compromise your policy's coverage.

Exactly what constitutes a long-term basis depends on the terms within your policy. Many policies limit short-term use to driving a vehicle 12 times per year regardless of whether they're consecutive or spread out, but policies might vary.

Since most drivers don't know the fine print of their policy well, the easiest way to make sure your coverage remains in place is to talk with an insurance agent before giving your car to a friend for a longer period of time. An agent can review your policy and help you make any necessary adjustments.

So long as your auto insurance policy was properly set up when you purchased it and has been kept up to date since, your car insurance policy will cover immediate family members who drive your car.

The only time when coverage comes into question is if an immediate family member should be listed on your policy but isn't. So long as you sing up for a policy with an insurance agent, this shouldn't be an issue since they know how to ensure everything in a policy's paperwork is properly done.

The above guidelines are all true unless the person who takes your car is specifically excluded on your auto insurance policy. When you purchase a policy, you have the option to list drivers who the policy won't cover. Anyone you list won't be covered while they're behind your vehicle's steering wheel regardless of whether you gave them permission to use the car.

Few drivers utilize the exclusion option, but there are situations where it can be helpful. For example, you may exclude a driver in your immediate family who's had multiple DUIs and is considered a high-risk driver. Excluding them would help keep your auto insurance premiums lower in this situation, but they wouldn't be covered if they took your car out.

For help sorting through auto insurance matters like these, contact Coast Comp Insurance Agency.