Many possible drivers for the same car - who's insurance will kick in, if any?
You don’t have to think hard to imagine a situation in which somebody other than you might need to drive your car.
Your neighbor’s car has a flat tire and he’s late for a doctor’s appointment. Your visiting niece breaks a fingernail and MUST get to the beauty shop. You want a latte and your secretary is out of gas. You are going to sell your car and the possible driver is in for a test drive. You are driving with friends during holidays or are into car sharing.
We’ve all seen situations like these. When things like this happen, we don’t always take the time to think….if he/she has an accident, will I be covered? But taking those few extra seconds can save you a lifetime’s worth of misery. If you don’t know the answer – and maybe especially if you THINK you do, a visit with your insurance agent is in order.
Rules about who is covered while driving vary from state to state and company to company. Generally speaking, however, it is the responsibility of the owner to disclose the names and driver status of everybody who lives in your household. This might be especially complicated if you live in a college Frat House scenario, but in terms of your liability it’s a critical step in protecting yourself and your family.
Excluded Drivers
- Some states allow you to specifically exclude some drivers from your policy. If this is the case, you will be asked to sign an exclusion form which clearly states that your policy will not cover damages if an excluded individual is driving at the time of an accident. Other states will not require you to list family members, in which case they will probably not make you sign an exclusion form at all.
- If you live with excluded drivers you must be especially careful to keep your keys where they cannot be “borrowed” in “emergencies.” (Like the fingernail crisis mentioned above.)
Unlisted Household Members
- Again, if the state in which you live does not require you to list all family members they may not insist upon an exclusion form.
- That said, if Aunt Bessie has an accident while driving your car, your underwriter may look to her to pay the damages. If she doesn’t have insurance or has it in insufficient amounts, the financial burden may ultimately fall upon you.
Undisclosed Drivers
- Ignoring or otherwise forgetting to mention drivers who share your household is NOT an answer. If a family member – even a visiting one – drives your car and is involved in an accident your insurance carrier is not likely to pay. Worse, they may bring charges against you for attempting to defraud them.
Any Drivers Regardless of Status
- If your car is involved in an accident, you can hope that the person you entrusted with your vehicle is adequately insured. It’s probably a better idea however, to assume exactly the opposite…that they are not insured and that they do not have assets which might be sold to cover damages.
- As unfair and uncomfortable as this might sound, if somebody has an accident while driving your car,
at the end of the day, it is YOU who are responsible for all damages and/or injuries. It matters not that this driver might have been excluded, undisclosed, or simply forgotten about, it’s your car and your responsibility. Therefore it behooves you to be sure you’ve protected yourself in every way possible.
What should you take away from this? First of all, honesty really is the best policy. Tell your insurance agent everything. You pay them to watch over you but they can only do it if they know the whole story. Secondly, resist the temptation to loan your car to anybody unless you KNOW that person is listed on your policy. Too many ugly things can happen even to good drivers. A broken fingernail is not worth an entire lifetime of painful payback.
Image: Flickr.
