Does insurance cover other drivers not listed?
Most car insurance policies will cover drivers you've listed on the policy, or anyone whom you give permission to drive your car, says Nolo.com. This means your insurance will likely cover another driver in the event of an accident, as long as they had your permission to drive your vehicle.
Even if someone isn't listed on the policy, they can operate your vehicle. If you explicitly name someone as an excluded driver in your policy, however, none of this applies to them.
If you allow someone else to borrow your car, it's still covered by your insurance policy. Insurers call this "permissive use." This is true even when the driver carries their own insurance. However, both your insurance policy and the driver's insurance may apply in the event of an accident.
A non-rated driver is an individual who lives in your home or may occasionally drive your vehicle, but won't affect your policy's premiums. Also known as a listed or list-only driver, these individuals may have regular access to your vehicle but either don't drive it often or have their own insurance coverage.
So, if someone borrows your car in California and is injured in an accident they didn't cause, you'll need to file a claim with the at-fault driver's insurance company. If the at-fault driver doesn't have insurance, you'll need to file a claim under your own uninsured motorist coverage.
If someone other than the insured is driving, even with permission, the other person might not be covered. Family members are already included, but other people need to be explicitly listed on the insurance policy to be covered.
While most insurers cover drivers you let borrow your car occasionally, some don't. If your auto insurance provider doesn't allow permissive use, your policy may not pay for damages if your partner gets in an accident with your car.
Generally, insurance coverage follows the vehicle rather than the driver. So in most instances, as long as the owner of the car has insurance, it's covered even if someone other than the owner is driving it — as long as they have the owner's permission.
Car insurance coverage follows the vehicle, not the driver. When you allow a friend, family member, or babysitter to borrow your vehicle, they also borrow your car insurance. Your insurance becomes the primary coverage when lending the car to family members or friends.
Roommates who live in your household and regularly operate your vehicle should be added to your policy. Friends can be added to your policy if they regularly drive your vehicle.
Is insurance attached to the car or the driver?
Contrary to popular belief, car insurance typically follows the car — not the driver. If you let someone else drive your car and they get in an accident, your insurance company would likely be responsible for paying the claim, depending on the coverages in your policy.
An excluded driver is a person in your household who has been explicitly excluded from coverage under your car insurance policy. Their name will show as "excluded" on your policy, and they won't be insured to drive any vehicles on your policy.
Adding a driver to your insurance policy means they're an insured driver under your policy when they drive your car. So, if they get into an accident, your insurer is more likely to cover the damage than for an unlisted driver.
If someone else is driving your car and another person causes the accident, the at-fault driver's insurance is usually responsible for covering costs. On the other hand, if the driver of your car is at fault, your car insurance will usually cover damages. However, there are some exceptions to this.
You can not drive a vehicle in California without insurance, and you or the person you're borrowing from must have insurance to drive legally. Your regular auto insurance policy in Los Angeles tends to follow the car instead of the person who has paid for the insurance. The same applies to when you borrow a car.
The Insurance Policy Follows the Car and Not the Driver
Under California law, in most instances, the insurance policy attaches to the car itself. If someone was driving your car, it would be your insurance policy that paid for the damages. However, that does not mean that you should assume that the driver is covered.
If someone else crashes your car, what happens next depends on various factors. In general, your insurance company will cover the accident if the person driving had permission to use your car and caused the accident. If they didn't cause the accident, the at-fault driver's coverage usually kicks in.
Sharing a car insurance policy with a friend could help both of you save money by dividing the costs of some auto insurance coverages. Plus, both of you are covered anytime you drive the other's car. However, your friend's claims or driving history may affect the amount of the car insurance premium.
Getting insurance for a car that's not in your name often requires proof that you have a financial stake in the car. In some states, local laws could keep you from insuring a vehicle you don't own. A non-owner auto insurance policy could be a good option if you frequently borrow or rent a car.
Most of the time, as long as you gave a driver permission to borrow your car, it's likely not a problem for them to drive your car, even if they're not on your car insurance policy.
How much should I charge someone to borrow my car?
A good starting point is the federal mileage rate to calculate the expenses of operating a car, currenty at around 55 cents, but this includes the price of gas, which your friend should probably be paying for. I'd charge him either by usage, or a flat fee that would somehow average the expected usage.
Car Insurance Generally Follows the Car, Not the Driver.
Jessica gives you permission to borrow her car. As long as you've got Jessica's permission, it's usually legal to get behind the wheel of her car, even though you're not insured. Why? Because auto insurance generally follows the car, not the driver.
If you gave permission for someone to drive your car, your insurance should cover the damages resulting from the accident. However, if the driver took your car without permission, you may not be able to so easily resolve the other party's claims. Your insurance may decline to cover part or all of the damages.
Insurance for someone else's car: If you and the other vehicle's owner both live in the same permanent residence and are named insureds on the policy, then you can typically add their vehicle.
Which insurance companies offer permissive use? Most of the big auto insurance companies — Allstate, AAA, GEICO, and USAA — allow for permissive use, but you should always confirm your policy details. If you have a named driver policy with any of those companies, you will not have permissive use.
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