Despite the fact your friend may need to borrow your car for a date or needs to get to work, it is essential to know the risk that comes with letting others driving your car. Many people do not know if they are protected or not if something goes wrong as your friend is driving your vehicle. Brazelton Insurance Group has some helpful information regarding the general rules when you allow others to drive your car, which includes:
Direct Family Links – Most of the policies regarding household members driving your vehicle vary, however, the general rules to a relative with their own insurance policy under their vehicle is that they will be excluded from your insurance policy. If the household member gets into an accident, the claims will not be covered under your policy. On the other hand, if a family member of yours is classified into the category of a non-driver and suffers an accident in your vehicle, it will more than likely be covered. If the family has a license and a bad driving record, it will affect your insurance premiums.
Permissive Use Drivers – Even though Permissive Use Drivers (PUD) have your consent to use your vehicle when they need to, both of you will be liable for covering the costs for an accident if the PUD faces a car accident. The learning costs of the accident is the part your insurance doesn’t cover, especially if your policy’s limits have been used thoroughly.
Ultimately, it is essential for you to let your family members know about your vehicle insurance policy before they borrow your car. This will avoid many complications and possibly lawsuit for insurance fraud due to the family members not being aware of the policy.
For more information or questions about letting others use your vehicle, learn more about the potential risks that may come with it by contacting Brazelton Insurance Group today.