Agent, Rural Mutual Insurance Co., Union Grove, WI
Auto insurance typically follows the driver first and then the vehicle. If you have auto insurance coverage on your vehicle and allow another person to drive the vehicle and they do not have auto insurance coverage your auto insurance coverage would typically apply if they were involved in an fault accident less your deductible. This could potentially put you at financial risk, risk of a rate hike, or even possible cancellation or non-renewal.
Agent, Rural Mutual Insurance Co., Union Grove, WI
Automobile insurance(the liability portion - bodily injury, property damage, medical expense, under-insured, and uninsured motorist) will typically follow the driver not the vehicle. The vehicle itself does not have insurance technically. The collision and other than collision will only provide coverage for the vehicle they are listed to, these coverages do not typically follow the insured. Remember every policy is different. Please read your policy completely to understand the coverage provided and any exclusions that there may be or contact your local agent to have them go over the policy with you.
Tend to disagree with my colleague here. If you give permissive use to another person who you believe to be a licensed operator then your liability insurance ( bodily injury, property damage ) will respond. The ability to allow permissive use is a powerful extension of your policy. You should know that the other party does have a valid drivers license (ask them and take a look at their drivers license) and be careful about when and where you hand over the keys. If someone is out drinking with you and you hand off the keys you also may be creating a negligent entrustment.
Also keep in mind, that an auto policy affords you defense costs. So while the circumstance of any permissive use may mean the involvement of your policy, the adverse party will likely file suit against everyone involved including you.
A bit of a warning to all this : some companies do sell limited liability policies in which permissive use is restrained. Ask your agent and don't buy a policy like that. You would be giving up an important coverage that may be necessary in an emergency situation.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Auto insurance follows the car. The car is insured. If the person named on the insurance policy permits you to drive the vehicle, and you are a licensed driver, the coverage afforded under the cars policy applies. The exception would be if you were a member of the household and were specifically excluded from operating the vehicle. That would appear as an endorsement or would be a part of the policy itself.
.JPG){kind=avatar}
Also keep in mind, that an auto policy affords you defense costs. So while the circumstance of any permissive use may mean the involvement of your policy, the adverse party will likely file suit against everyone involved including you.
A bit of a warning to all this : some companies do sell limited liability policies in which permissive use is restrained. Ask your agent and don't buy a policy like that. You would be giving up an important coverage that may be necessary in an emergency situation.