Does My Car Insurance Cover Me In Another Car? Brini Has The Answers
Does My Car Insurance Cover Me In Another Car
My weekend was all about trying out my buddy’s brand new car, and I might even add, I did not scratch the coating (thank the heavens!), but then I got this question: What if I had? Time for my insurance to swoop in like a freaking superhero or time for me to pay, one way or the other? It’s one of those things that are never considered until you’re right in the middle of an uncomfortable experience.
So, like any other savvy (and kinda anxious) motorist, I went straight into the rabbit hole of automobile insurance to learn the what’s, who’s and what have you’s. When it is something that should be simple then the answer is not so simple. Getting yourself around in vehicles that you do not actually own can get a little murky insurance wise.
This is the guide for you if you ever borrow a car from a friend, rent one for the holidays, or wonder about the “what-if scenarios.” Here, we explain what you need to know about how your insurance works when operating a vehicle that is not yours.
What Does Car Insurance Usually Cover?
Car insurance is an umbrella — the one you reach for when life rains down minor (or major) calamities on the road. But what’s actually included in it? The answer can vary based on the type of coverage you have. In a nutshell, there are three basic types of coverage in most car insurance policies: liability, collision and comprehensive.
The most basic form of coverage is liability coverage, which is required by law. It provides coverage for injuries or damages you do to individuals or property while driving. So, for instance, if you rear-end someone, the liability coverage pays for damages to their vehicle or medical bills.
Unlike collision coverage, which covers damage to your car due to an accident whether it is your fault or not Last but not least is comprehensive insurance, which covers other non-collision incidents such as your car being stolen, vandalized, and even a tree branch landing on your parked car.
Knowing these kinds of is vital once getting into consideration traveling yet another vehicle since the protection particulars will change — principally if you are borrowing someone else’s vehicle?
Primary Vs. Secondary Coverage
And while there are many aspects to car insurance that you should understand, one of the fundamental elements is the difference between primary and secondary coverage. You can think of it like an insurance sequel standard.
The vehicle owner has primary coverage Your friend’s insurance would kick in first if you wreck their car. That means their liability, collision or comprehensive coverage will cover initial payments. But that does not mean your insurance gets a free ride.
Your policy kicks in as excess coverage. It kicks in only once the limits of the owner’s insurance have been reached or the owner’s policy doesn’t cover the total amount of the damages. For example, if your friend’s policy has a liability limit of $25,000 and the accident costs $35,000. If you carry non-owned vehicle coverage, your policy should kick in and cover the remaining $10,000.
This is part of the hierarchy of coverage, which is why you need to know how much both your policy and the owner’s policy cover—because one way or another, you might be held responsible for paying for the damages whenever you borrow a car.
What If You Drive Your Friend’s Car?
So what happens when you borrow a friend’s car? The good news is, that if you have permission, their insurance policy generally is the first line of defense against you. This means that in nearly all circumstances, their insurance will be activated for damages that occur while you’re operating the vehicle.
There are exceptions, though. But if the car owner’s policy does not include collision or comprehensive coverage, you’ll be stuck with the repair costs. Also, any policy that restricts or limits coverage to particular persons might not cover drivers with explicit permission from the owner to drive the vehicle. The other thing to keep in mind is if you are getting a car for personal use or business use.
The owner’s policy may not cover any accidents at all if you are using it for work — like making deliveries. Just be sure to read the fine print of their coverage before getting behind the wheel. This can prevent you from later having an expensive headache.
Liability Coverage Vs. Comprehensive Coverage
Knowing what kind of coverage you have when driving someone else’s vehicle is paramount. The most relevant of them all, are liability insurance and comprehensive insurance. Liability insurance is mainly for damage or injury you cause to somebody else. Liability coverage covers the repairs or medical expenses when, for example, you run into another vehicle or knock over someone’s mailbox.
Now this is where things take an interesting turn: Comprehensive insurance. This is for protecting against other damages not linked with driving accidents, such as theft, fire or an unexpected hailstorm. Comprehensive — If you wreck your owners car in some sort of non-collision manner while you are driving, it would be comprehensive that would kick in and cover that claim.
The tricky part? However, not every driver has comprehensive coverage — particularly those with older cars, or a car that’s paid off. And this could even expose you in specific situations. Before you climb into the driver seat of a friend, co-worker or potential lover’s car, take a minute to ask the question, what type of coverage do you have? But a small step can go a long way.
The owner’s policy may not cover any accidents at all if you are using it for work — like making deliveries. Just be sure to read the fine print of their coverage before getting behind the wheel. This can prevent you from later having an expensive headache.
Conclusion
Whether you are borrowing one of your homeboy’s wheels for some errands or taking a new whip for a spin, driving someone else’s ride can make life easier. As we discussed though, getting car insurance behind the wheel of a car that you own can be a complicated business. Typically, the owner’s insurance policy is first in line to cover damages, but your insurance may step in as a secondary coverage, if needed.
It is essential that one knows the difference between coverage, such as if the car has liability, collision, or comprehensive. You want to also be sure you have permission to be driving the car, since this could be a significant factor in how coverage applies. If you’re regularly borrowing a car, it would be wise to speak to your insurance agent about temporary or non-total insurance to possibly offset unexpected costs in the future.
FAQ
Your friend’s insurance policy generally covers damages if you have a car accident while driving their car with permission. If they go above their policy limits, your insurance would cover secondary.
Not always. Most insurance policies cover permissive use, which means that if someone has the owner’s permission to drive (such as a friend or family member), he or she is covered. Please note, however, that some policies are only valid for named drivers listed on the policy, so it always pays to check beforehand.
If you are driving an uninsured vehicle, your own insurance may cover you, but only if your policy includes something called non-owner or extended coverage. However, it is a precarious position, and one to be avoided at all costs.
Coverage for rental cars is often found in personal vehicle insurance policies. However, it is best to check with your insurer, and you could opt to buy extra coverage with the rental firm for peace of mind.
