Auto Insurance – Can Another person Drive My Car and Still Be Covered?
I get this call about monthly from one of my Ann Arbor insurance clients:
Is it okay on the table they are driving my car?
For most people the solution to this question seems like an obvious ‘yes’, but it’s actually a excellent question since there are some hidden dangers anytime you let someone borrow your vehicle. Even if it’s just for a few hours! Did you know that the insurer can deny coverage (i.e. never pay on the claim that they can fix your vehicle) if you let someone borrow your car for over an extended period of time (actual days may vary by insurance company, so be sure to check) if you do not disclose the operator?
That seems pretty severe, right? Why would the insurer do such a mean thing?
Well, I understand you would not be this devious, but some people actually attempt to scam Ann Arbor Insurance companies by insuring an automobile for their brother, for example, who has 3 DUI’s, 4 at-fault accidents, and hasn’t had his own insurance going back Many years. Edge in the game to cut costs, but it has serious consequences. The moral from the story is, always tell your insurance provider who will be driving your vehicle if longer than a couple weeks just to be secure.
An execllent question I recieve on this topic from my Ann Arbor insurance clients is, “Who’s policy covers the harm to my vehicle if they wreck it?” The reply is, “Your policy will have to pay it off.” Another hidden danger, especially if the person borrowing your vehicle doesn’t have their own car insurance is necessary when they would possess a bad accident in your car and were sued by another party. Your liability could have to defend them and you’ll be putting your assets at risk.