When the adult child borrows the car of the parent, they are normally covered by the parent’s auto insurance policy. This is because car insurance normally follows cars, not motorists. However, this does not mean lending the vehicle should be done without being aware of some things. Hensley Legal Group, PC, highlights the following you need to know.
Auto Insurance Policy Coverage
Because insurance policies follow cars, most of the drivers whom the car is lent to will be covered. There is an omnibus clause in the policy that states drivers living in the same home as the owner are going to be covered. This includes children who are away at school. The only condition is that the adult child was given permission to drive the vehicle.
In some cases, when you lend the car to a visitor and an accident happens, the auto insurance company might cover them. However, limitations are in place. Also, the insurance company will request afterward that the driver is added to the excluded list.
Who Does The Car Insurance Policy Not Cover?
Excluded drivers are not covered. Basically, this is an individual explicitly noted as not covered. You can decide to exclude those family members who are not great drivers. Also, insurers might ask you to refuse the driving privileges of some people in your home who have a history of accidents or DUIs. The excluded provision is important in some cases because it will help you save a lot of money on insurance rates.
When Neighbors Borrow Your Car
You might occasionally choose to borrow the car of your neighbor when you want to go to work or when a chore needs to be done. Being covered by the insurance policy of the neighbor is all about the use of the vehicle and why you will drive it. There are specific laws that apply in the state where you live.
Whenever using the vehicle just once every 2 months or so, there is a high possibility you will be covered. When the car is used just for a couple of days, you are most likely covered. However, in the event that you use the car for a long time, you will most likely not be covered. The only way to go around this is to have the name added to the insurance policy of the neighbor.
The reason why you use the car is also very important. When using the car for a job, the insurance policy needs to be a business insurance or a commercial auto insurance. Generally speaking, personal auto insurance will not cover when doing work as you drive the car.
Drivers Without Permission
When someone takes the car and you do not know about it, you obviously did not give permission. When that individual gets into a car accident, you will not be liable. However, your insurance will need to cover damages for your car, even if the other cars are not going to be repaired with your policy.
When your friend borrows the vehicle but you are not told, the insurance of the friend becomes the main coverage. Your coverage will be secondary.