If you let your greatest buddy borrow your automobile and he speeds by means of a red light and crashes, whose car insurance policy pays for injury completed to your automobile and other people harmed in the accident?
If you explained his, you’;d be dead wrong.
Normally, an auto insurance coverage policy follows the automobile, says Tully Lehman, spokesperson for the Insurance coverage Info Ne2rk of California. Therefore, as the vehicle proprietor, it’;s your policy — and your long term car insurance rates — at risk if somebody who borrows your car triggers an auto accident.
Why are you on the hook even when you aren’;t the one driving?
Mainly it truly is due to the fact many people are licensed to drive however do not have insurance policies in their personal names – youngsters, for example. A state-mandated liability policy linked to the motor vehicle ensures that there is often a way to pay if any driver of the car is at fault for injuries or house damage. Here is a rundown on which sorts of car insurance coverage follow your car and which follow you as a driver. The guy who borrowed your vehicle may get the ticket and the driver’;s license points, but it truly is your insurance that will spend if he caused the accident. Mark LeMaster, general counsel at SafeAuto Insurance coverage, says, “Lending your auto — named permissive use — is usually covered.” Your bodily damage liability and house harm coverages will pay out for damages or injuries that others sustained, up to the limits of your policy. If the damage exceeds your liability limits, then the driver’;s own policy may possibly be tapped as secondary coverage. “This is only the situation if the driver’;s liability limits are higher than the car owner’;s limits,” says CarInsurance.com client analyst Penny Gusner. Heaven forbid you both purchased the bare-minimal policy.