If someone drives your car that is not on your insurance and gets into an accident, your auto insurance is still likely to cover it. In some cases, the other person can be hooked for financial damages but there are exceptions to that. In this article, we will see in what cases your insurance will cover another person, and in what cases it may refuse.
Your Insurance May Cover These Cases
In Case of a Permissive Driver
So what happens when someone else is driving your car and has an accident? If you gave the person permission to drive then the driver falls into the permissive category, the insurance will normally cover the costs. It doesn’t matter whether or not you were in the car. Since your insurance is the primary, that person will get covered.
Your insurance covers the collision damage and liabilities as well. You are covered if you damage another person’s car in an accident. In the same way, your insurance will cover your liability if another person driving your car damages another person’s property. However, if that amount exceeds your liability coverage, the person may be sued for financial damages.
If the Person Is Your Family Member
If the person is your spouse or some other family member then the insurance will cover in all normal circumstances. If you have named someone on your policy your insurance has to cover that person as well. In most road traffic accident claims, your insurance is likely to cover a family member.
When the Insurance May Not Cover
If the Person Is A Non-Permissive Family Member
The insurance will not cover if the person is your family member but you have specifically excluded him from the policy. If you have excluded such a person to avoid high rates, your insurance may not cover the person. Most of the time, the insurance won’t cover such a person even if you permitted him at that time.
In Case the Person Is Driving Illegally
If a person is driving illegally without a license then the insurance may refuse to cover him as well. The insurance may also refuse if the person who is driving is under some influence.
What about the Rates?
You are most likely to have high rates. Your auto insurance works the same for the other person as it does for you. You will see high premium rates. A good solution to this is to look for accident forgiveness programs. You can try and apply for them but bear in mind that these are only offered by some companies. They are also provided to people who have an accident free history.
Bottom Line
Your insurance covers the costs if another person gets into an accident that is not on your insurance. There are some exceptions to the rule. But in most cases where you have allowed the person or haven’t disallowed him, your insurance covers the cost. Just keep in mind that based on where you live, the terms and conditions of your insurance may vary.
Also Read: What Can You Claim In A Car Accident?
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