In general, car insurance covers someone else driving your car with your permission. However, there are limits and exclusions to be aware of.
For instance, if you allow a friend with a questionable driving record to borrow your car, your premiums might increase, or coverage might be restricted. You also have the option to add another person to your coverage for an additional cost.
A Fort Lauderdale car accident lawyer can review your insurance policy to determine what coverage you have.
Who Is Covered Under Your Policy?
The named insured, typically the policyholder, is the primary person covered under the policy. This means that you, as the policyholder, are protected in case of an accident, regardless of who’s driving your car.
Additionally, other individuals listed on the policy, such as family members or spouses, are also covered. A Fort Lauderdale personal injury lawyer can review your policy to understand the specific coverage and limitations. They can help clarify any questions or concerns you may have about who’s covered under your policy.
More people choose The Schiller Kessler Group because they know that we’re a cut above other personal injury law firms.
Permissive Use: What You Need to Know
When you lend your car to someone, you may wonder who’s covered under your policy. Permissive use allows others to drive your vehicle with your permission, but there are conditions. Specifically, you should know about driver’s license requirements and policy exclusions that may apply in these situations.
Who Is Covered?
Your insurance policy may extend to certain individuals who drive your car with your permission. Here are some examples:
- Family members: Your policy usually covers spouses, children, and other relatives who live with you.
- Friends and roommates: If you permit them to drive your car, they’re likely covered, but check your policy for specific rules.
- Borrowers with a valid license: If someone with a valid license borrows your car, they’re usually covered, but again, check your policy.
- Employees or business associates: If you use your car for business and let employees or associates drive it, they might be covered under your policy.
Driver’s License Requirements
Before handing over the keys, make sure the person has a valid license and is eligible to drive. If they recently obtained their license, they may need to take a road test to prove their qualifications.
Don’t risk your car insurance coverage or your friend’s license–verify their credentials beforehand. It’s better to be safe than sorry, so take the extra step to confirm their license status.
Policy Exclusions Apply
Lending your car to others can be a kind gesture, but you should understand the fine print of your car insurance policy. You might assume your policy covers anyone driving your car, but that’s not always the case.
Policy loopholes and insurance limitations can leave you and the borrower exposed. Check your policy for these exclusions:
- Excluded drivers: If someone is explicitly excluded from your policy, they won’t be covered.
- Business use: If the borrower uses your car for business purposes, your policy might not apply.
- Racing or reckless driving: If the borrower is involved in an accident while racing or driving recklessly, your policy might not cover the damages.
- Unlicensed drivers: If the borrower doesn’t have a valid driver’s license, your policy might not provide coverage.
Understanding these policy exclusions can help you make informed decisions about lending your car to others.
Authorized vs. Unauthorized Drivers: The Difference
Three key scenarios can lead to confusion when it comes to authorized vs. unauthorized drivers: borrowing a friend’s car, lending your vehicle to someone, or having a family member drive your car without permission.
You might assume that your car insurance policy covers anyone driving your vehicle, but that’s not always the case. Driver rules and insurer policies vary, but generally, authorized drivers are those you’ve given explicit permission to drive your car, while unauthorized drivers are those who haven’t received your consent.
If you lend your car to a friend or family member, they’re usually considered authorized drivers. However, if someone takes your car without permission, they’re considered unauthorized, and your insurer may not cover damages or accidents.
How a Borrower’s Driving Record Affects Coverage
When a friend or family member borrows your car, their driving record can substantially impact your insurance coverage. You may not think about it, but their driving history can affect your insurance implications. Here are some ways you may be affected:
- Higher premiums: If the borrower has a poor driving record, your insurance premiums may increase.
- Limited coverage: Your insurer might limit coverage or deny claims if the borrower has a history of accidents or violations.
- Higher deductibles: You may be required to pay higher deductibles if the borrower has a spotty driving record.
- Policy cancellation: In extreme cases, your insurer might cancel your policy if the borrower’s driving record is deemed too risky.
What If the Borrower Causes an Accident?
Suppose you lend your car to a friend or family member, and they get into an accident. In that case, you’ll be responsible for dealing with the accident’s consequences, including filing a claim and communicating with your insurance company.
With regard to borrower liability, your insurance policy will typically cover damages or injuries caused by the borrower, but you may be held financially responsible for any excess costs.
Let Our Fort Lauderdale Car Accident Lawyers Help
A Fort Lauderdale car accident attorney from our firm can review your policy to see if your car insurance covers someone else driving your car. If you suffered injuries in an accident, our firm can also help you file a claim with the appropriate provider and fight for the compensation you deserve.
To discuss your case, contact The Schiller Kessler Group for a free consultation.
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