FOLLOW THAT CAR
Many people mistakenly believe that auto insurance follows the driver. In actuality, however, car insurance follows the vehicle. This means that if you lend your vehicle to a friend who gets involved a crash, the friend will be covered by your insurance. This is an instance of “permissive use,” in which you give permission to another driver to take your car. While policies may vary, anyone living in your home is also typically covered by your policy when they drive your car. In fact, everyone in the same household is usually required to be included on the vehicle’s insurance policy. By the same token, you can also specifically exclude from your policy drivers with poor driving records.
NOTE: If your friend takes your vehicle without your permission, his or her coverage would likely pay first, after which yours would kick in to fill in the gaps.
Have you checked your car insurance coverage? Are all the individuals in your home covered?