This is a common question that has a quick and simple answer: Yes, most of the time.
Over the past 10 years, insurance contracts have been changing. It used to be that coverage followed the car 100% of the time, so anyone driving your vehicle would be insured. Each year more insurance companies are changing it so that liability follows the driver, not the car. That’s added quite a bit of complexity.
Let’s review the two key scenarios when it comes to who may drive your vehicle and how coverage may apply.
• If a non-household member drives your vehicle with your permission, coverage will follow under either the vehicle’s insurance or under the driver’s insurance. The answer depends on the auto insurance contracts.
• If a household member drives your vehicle, they must be listed as a driver on your auto insurance policy. If not, coverage may be denied depending on the contract.
We tell our clients to make sure that all household members are listed as drivers on their policy, and to also make sure the person borrowing their car has an active insurance policy. This way, in the event of a claim, the insurance companies will determine whose policy will pay for the damages. Coverage will apply, it’s just a matter of which company will pay.
Review the specifics of your policy to ensure it allows someone else to drive your vehicle. Read the terms and conditions and look over any exclusions. Also, be sure that the person behind the wheel has their own insurance.
If you would like to know more, please contact one of our representatives who will be happy to answer any of your insurance questions.