Many people are concerned about lending their cars to friends or family members. You should be, because they could be liable. If someone drives your car, it’s important to know if you’re going to be protected. As states’ laws and insurers’ rules vary, you should talk with your agent and they can explain what’s needed for you. While you do that, here are some general rules concerning who is covered by your policy when driving. 

Permissive Use Drivers (PUD)- PUDs do have permission to borrow your car occasionally. For example, if your friend borrows your car to make a quick run to the store, are you going to be covered? The answer is yes, but take note that in a PUD accident, you and that PUD could face some lawsuits. This is to cover the remaining accident costs if your policy’s liability limits are exhausted and your permissive use drivers has no coverage of his own. If the permissive use drivers do have vehicle insurance, the not-at-fault party can make a claim on this policy.

Household Members – Each state has their own law about household residents with drivers’ licenses who are able to drive another household members vehicle.

Are your household members covered? – Maybe, it depends on your state, insurance, and whether the household member is an excluded driver, nondriver, or driver on your policy.

  • If a household resident owns a vehicle and his/her has their own insurance, he/she may be excluded from your policy. Claims won’t be covered under your policy if this person has an accident while driving your vehicle.
  • If a household member is classified as a nondriver and they have an accident driving your car, your claim would most likely be covered. But with non-drivers with licenses they are rated on your policy as drivers, so if they do have a bad driving record, this will impact your premiums. So be sure you make the correct choices before letting them drive your car.
  • If you don’t disclose household members, your insurance agent can deny claims and cancel your policy. You could be sued and/or possibly charged with insurance fraud.

Contact your agent today at Brazelton Insurance Group and see what’s available!