Since many people don’t give a second thought to lending their cars to their friends, it is important to understand the chances that they are taking, especially when it comes to liability in the event that something happens. If you allow someone else to drive your car, it is important to know if you are protected or not.
Since States laws and insurance carriers rules all vary, it is critical to speak with Brazelton Insurance Group, who can explain them, clarifying if they apply to you or not. Here are some general rules of thumb that you should consider when allowing others to drive your car:
Permissive Use Drivers (PUD)– While PUDs have your permission to borrow your car occasionally, it is important to know that in the event of an accident, you and the PUD could face lawsuits in order to cover remaining accident costs, especially if your policy’s liability limits have been exhausted, and your PUD does not have their own coverage. In the event that the PUD does have their own car insurance policy, the not-at-fault party can make a claim on this policy.
Household Members– State laws and insurance carrier’s rules all vary when it comes to household residents with drivers’ licenses that drive another household member’s vehicle. If a household resident owns a vehicle, with their own insurance policy, he or she may be excluded from your policy. In this case, these claims will not be covered under your policy, especially if this person has an accident while driving your vehicle. If a household member that has been classified as a non-driver has an accident driving your car, then your claim would most likely be covered. However, non-drivers with licenses are rated on your policy as drivers, which means that if they have a bad driving record, then they will impact your premiums.
It is critical that you disclose household members on your policy. Your insurance carrier can deny claims, cancel your policy, and potentially sue you for insurance fraud in the event that you choose not to disclose those members.
If you have any questions or need help with your auto insurance policy, contact Brazelton Insurance Group today!