How insurers respond when you let others drive your car?

You might be genial enough to let others drive your vehicle. Don’t expect your insurer to behave in a similar manner. In that case, you can only pray that the other driver using your vehicle doesn’t get involved in an accident. If he or she causes any accident, and your insurer denies paying for the consequent damages, you’ll have to bear the expenses on your own. The costs might not only be for the damages to your own car, but will also take into account the damages to the other vehicle or vehicles involved in the accident. Apart from the property damage part, you might also be held liable for the bodily injuries caused. Read along to know how the insurers may respond under different situations, when another driver uses your car.

1. When the car is taken without permission or stolen – If your friend or family member takes your car without permission, you’ll need to prove it. In that case, your insurer will deny liability coverage for the damages or injuries. If you have collision coverage, the insurer will pay for the damages to your car. Comprehensive coverage pays for vehicle theft. You’ll need to report the theft to the police to validate that your vehicle was stolen by a third party unknown to you. Only then, the insurer will compensate for the loss or the damages, but won’t extend liability benefits for stolen vehicle. Later on, you can be sued for negligence.
2. When the driver is not listed in your policy – Vehicle drivers who are not listed on your policy are usually not covered. Liability coverage is denied but damages due to collision are paid for. Insurers will however extend coverage for drivers who have access to your vehicle and are listed on the policy.
3. When the driver isn’t licensed – Driving without license is illegal. Auto insurance will only cover if the other driver is licensed and listed on your policy. The insurers also extend coverage for drivers who use your vehicle occasionally with your permission, and are licensed.  In that case, if a kid in your household, who doesn’t have his own license, gets involved in an accident, your insurer will deny paying for the damages.
4. When the driver is under influence – No one is allowed to drive under influence and this rule applies to anyone who drives your car, even if he is licensed, is listed on your policy or has permission to drive your vehicle. Your insurance policy will get affected in the same manner, as if you have been charged with a DUI or DWI conviction. The insurers will impose limitation on your coverage, and you’ll have to pay more as premiums.
5. When the driver violates traffic regulations – Going over the permissible speed limit or violating traffic rules might result in a ticket for the vehicle driver. That would supposedly not influence your insurance policy. Several such tickets may result in suspension the driver’s license, while your policy stays unaffected.

Precautions for the vehicle owner

If it’s your vehicle, you’re the one responsible for it. Before you expect your insurer to extend auto insurance coverage for someone borrowing your car, you must keep in mind the following points:

1. The driver must be of age and have a valid driver’s license.
2. He or she must have your permission to drive the car.
3. He or she shouldn’t be a frequent user of the car.
4. If the car is used often or regularly, the driver should be listed on your auto insurance policy.

Negligence on your part might cost you later on, either in the form of increased insurance premiums or in the form of costs for damage repairs and injuries.