Does Auto Insurance Cover Other Drivers?

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   Mark Bartlett CLCS

   Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers

   This is one everyone needs to be very careful with. The rule with insurance carriers is all household members must be listed or excluded. Insurance carriers are entitled to collect the proper premium for the risk.  I have seen many clients (not mine) over the years not list other household members in order to save premium. This has resulted is horrible claims issues for not disclosing other drivers in the household. As for loaning your car to an outside the home individual in most cases this is permissive as the driver does not have regular access to the vehicle and this is seen as incidental. However depending on the state you are in the person who loaned the vehicle is often still held liable if there is an accident. It is very important you speak to your agent about how your policy works and the ramifications of loaning out your vehicle. Different carriers deal with  the issue in different ways and you don't want to find out there is not coverage after the accident. Also if there is permissive driver use for non household members ask you agent if liability is reduced. Many carriers will reduce limits to state minimum when the vehicle is loaned.

   Answered on May 6, 2013

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