Contrary to popular belief, auto insurance doesn’t follow the driver of a vehicle, it follows the vehicle. This means that whoever drives your car with your permission is covered under your auto insurance. By obtaining comprehensive auto insurance from Schaller & Thomas Family Insurance, your vehicle will be fully protected against accidents, whether you or a friend are driving.
Repercussions of Loaning Out Your Vehicle
If you loan your car to a friend and he causes an accident, your insurance would cover the claim as per the coverage in your policy. The claim, however, would go on your record as the owner of the vehicle. Claims from other drivers could eventually cause your insurance rates to rise. Loaning your vehicle to multiple drivers increases the risk of accidents which could result in higher insurance costs.
Drivers who have your permission to operate your vehicle are covered under your policy. Those who live with you in Peoria, AZ should be put on your insurance policy to benefit from full insurance coverage. Family or friends who visit from time to time and occasionally borrow your vehicle don’t need to be listed on your policy to receive insurance coverage. As long as they have permission to drive your car, they will be automatically covered under your policy.
On the flip side, if someone drives your car without permission and has an accident, you can’t be held liable for injuries or property damage to others as a result of the accident. The insurance company of the individual who took your car would be responsible for damages. If the individual has no insurance, your insurer may have to cover the damages.
For personalized auto insurance coverage that suits your specific needs, contact Schaller & Thomas Family Insurance, Peoria, AZ.