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Is Anyone who Drives a Car Covered Under the Owner’s Auto Insurance Policy

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Drivers who are thinking of lending their car to someone may be wondering if anyone who drives it is covered under the existing auto insurance policy. The insurance is attached to the vehicle, not the driver. If the owner gives his or her permission to another person to drive it, the insurance coverage extends to the borrower as well.

All licensed drivers in the household should be named on the auto insurance policy, even if they don’t drive the car on a regular basis. The insurance company considers that they have access to it, whether they use it every day or once in a while. If a member of the household is not named on the policy, he or she may not be covered when driving the vehicle.

Auto Insurance for Teen Drivers

The policyholder should contact his or her auto insurance provider to determine who is covered under the policy. A change in circumstances, such as a teen getting his or her learner’s permit or license, means that the policy may need to be changed. Some insurance providers will add a teen with a learner’s permit to a policy, while others wait until the young driver has become licensed to do so.

All teens and young adults need to have auto insurance coverage to drive legally. Rather than buying a separate policy for a young driver, a better (and less expensive) choice is to add the teen to an existing policy. Teens and young adults pay some of the highest rates for auto insurance coverage. Insurance companies are aware that they are more likely to be involved in auto accidents than people who have been licensed for a few years.

As long as the young driver lives at home, he or she can remain on a parent, grandparent or older sibling’s policy. If the young driver owns his or her own vehicle, it can be added to an existing policy. A number of companies offer multi-vehicle discounts to their customers and this can help to keep coverage costs down.

Auto Insurance and Lending a Vehicle

A policyholder who decides to lend his or her vehicle to someone else is also allowing that person to use his or her auto insurance coverage. If an at-fault accident occurs, the insurance company will pay out on claims up to the policy limit. The vehicle owner may find that his or her rates go up when the policy comes up for renewal due to the accident.

Since the insurance coverage is attached to the car, not the person driving it, a vehicle owner should think very carefully about whether he or she can trust the borrower to operate it in a safe and careful manner. Offering to drive the other person to wherever he or she wants to go may be a better choice for a vehicle owner. At least he or she will not have to deal with the aftermath of an accident caused by someone else.

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