My Friend Crashed My Car: Am I Covered?
Let’s face it; unless you live alone and have no friends or family living near you, an individual not listed on your insurance policy will probably drive your car at some point.
The thought of an accident is probably the furthest thing from your mind when you hand over the keys. Unfortunately, these quick trips result in accidents thousands of times a year.
If you’re reading this, perhaps the worst-case scenario has already occurred. The good news is that you’re probably covered, assuming you’ve got car insurance.
Of course, as with any type of accident, claim payment depends on the type of coverage you chose when you purchased your auto insurance policy as well as a few other factors.
First things first, almost anyone who drives your car is covered under your insurance policy.
An individual does not need to be listed on your policy to be covered. It is described in the industry as “coverage following the vehicle.”
This means the insurance policy associated with the at-fault vehicle involved is considered primary insurance.
Any insurance your friend has is considered secondary, meaning if your policy liability limits were exhausted as a result of the accident, their policy would likely cover the excess damages.
It’s worth pointing out that the primary insurance holder could expect their insurance premium to go up as a result, assuming they’re the at-fault party.
So make sure you’re careful about letting others drive your car!
There are a few exceptions to the rule. The individual driving your car must not have been specifically excluded for coverage.
Excluded drivers can range from household members above 15 years of age who aren’t licensed yet, to a parent who has a driving record that results in an outrageous premium.
Whatever the reason, you’re telling the insurance company you do not want the individual covered because you don’t want to pay additional money to insure them on your policy.
Another caveat regarding coverage for individuals not listed on a policy states that a driver must NOT have regular use of the vehicle.
This is a policy condition that protects the insurer from writing policies, and potentially paying claims for, drivers that are purposefully not named as a means to keep premiums down.
For example, if you have a roommate with three DUI’s who regularly drives your car, he or she needs to be listed on the policy and a (higher) premium must be paid.
Now that we know who is covered, let’s look at how the coverage will work.
If your friend were to cause bodily injury or property damage to another party, assuming they meet the above criteria, the liability portion of your auto policy would be triggered to pay the claim, up to the applicable policy liability limits.
You would need physical damage coverage on your policy if there were damage to your vehicle and you wanted it fixed.
For example, if your friend ran into another vehicle, your collision coverage would be triggered. In the event your friend backed into a fence post and dented your bumper, you would need to have purchased comprehensive coverage.
If you have liability, collision and comprehensive coverage, it is referred to as full coverage.