Most of us have an opportunity to loan out our cars now and again — your friend needs to run a few errands but her car is in the shop, or your co-worker asks to take a spin in your brand-new SUV. Whatever the case, you need to make sure the person who borrows your car is insured to drive it since they aren’t on your policy.
Permission
In order for someone else to be insured to drive your car, even if they aren’t on your policy, you must give that individual permission. This doesn’t mean you need to sign a binding contract, but verbal or written permission is required if you want them to be covered under your insurance.
It’s one thing if your co-worker asks to borrow your SUV and you give him permission. It’s quite another if he swipes your keys from a desk drawer and heads out to the lot without your knowledge.
To be safe, you shouldn’t let someone else drive your car unless you’ve defined the parameters of that person’s usage. Know where they going and when he or she will return so there aren’t any disputes should something happen.
Car Insurance Follows the Car
You’ve probably heard this statement before, and it holds true for nearly every auto insurance policy in the United States. When you insure your vehicle, the car insurance protects the vehicle regardless of who is driving, as long as that person meets the previous two qualifications.
If you let someone drive your car and he gets into an accident, your insurance policy will be considered the primary coverage for the damage. If he has insurance in his own name, it may act as secondary coverage, which means it may cover any damage that falls outside the parameters of your policy.
Car insurance is complicated, and as mentioned above, it is easiest if you don’t let anyone else drive your car. If it is necessary, however, it is best to know what coverage you have and how your car insurance company treats other drivers.
Conclusion
Unfortunately, there is no bright line answer to the question, and it depends greatly on the language of the policies involved, the jurisdiction you are concerned with, and the specific facts involved. Permissive use is generally covered under the liability terms of an auto policy. As always, however, there are exceptions.
For the best answers to questions like these, it’s best to have a local Sarasota County insurance agent who can be on call and ready to answer your questions and keep you informed.
