Insurance Coverage and the Use of Other's Cars

Unless an insurance policy specifically states that only the owner of the vehicle is covered when driving, other people will be covered as long as they have the owner's permission to drive the vehicle. Generally, insurance coverage follows the vehicle so it doesn't matter if you were driving someone else's vehicle or someone else was driving your vehicle, it is the company that has the policy on the vehicle that should cover the costs of injuries or property damage caused by the driver unless the driver was negligent (failed to use reasonable care under the circumstances).

Primary Coverage by Owner's Policy

Someone else who drives your car should be covered under your policy as long as they were driving with your permission. If you have an accident while driving someone else's car, the owner's insurance would apply first toward damages as long as you had permission to drive. The owner's policy is considered the primary insurance, which means that it will cover the owner's car and any damage caused by it while it was operated with the owner's permission. The driver's auto insurance would generally apply (provide secondary coverage) in the event the owner of the vehicle had no auto insurance or did not have enough auto insurance to pay the damages.

Uninsured Motorists

If you are driving someone else's car and have an accident with an uninsured driver, the uninsured motorist coverage of the owner of the car you were driving is usually the primary coverage and your own uninsured motorist coverage is secondary. You will want to notify both your own insurance company and the company that insures the car you were driving.

Permission to Drive

If the owner of a vehicle gives permission to someone to drive their vehicle, that person is covered by the owner's policy, but so are relatives who live with the owner and drive the owner's car, with or without permission. Whenever the owner of a vehicle knowingly loans their car to a friend or an associate, he or she will be covered under the owner's automobile insurance policy. In fact, even if the owner does not give explicit permission each time a person borrows their car, others are still covered under the owner's automobile insurance policy as long as they had a reasonable belief that the owner would have given them permission to drive the car. The permission must be from the owner of the vehicle not from a friend or relative of the owner. For example, a teenager giving their friend permission to drive his or her parents' car is not good enough.

Steps to Follow if You Drive Someone Else's Vehicle:

• Make sure you have permission from the owner of the vehicle
• Make sure they have insurance coverage on the vehicle that you are going to drive
• Check to see if your insurance will cover any damage that is not covered under the owner's policy

Negligent Acts May Prevent Policy Coverage

An owner's policy might not cover injuries and damages that are the result of an accident if the driver's negligence (failure to use reasonable care under the circumstances) caused an accident or if the vehicle owner was negligent by allowing the driver to operate the vehicle.

The negligence of a driver may be attributed to the owner by a state law, where an agency relationship exists (one person acting on behalf of another), where the owner retains control over the car or where a joint venture is found to exist. A joint venture requires the following:

1. A definite agreement to pay a substantial share of the automobile trip
2. A common destination
3. An equal voice in fixing or changing the route for the trip
4. That the trip be for a common purpose

Most state laws do not automatically attribute the negligence of a family member to the owner. The owner may be considered to have been negligent if he or she knows that a person is incompetent, underage, intoxicated or otherwise unqualified to drive but allows that person to drive anyway.

How a Lawyer Can Help

If you find yourself in an insurance coverage dispute related to your use of a borrowed car, or the loan of your car to someone else, you will want to consult an attorney who is experienced with car accident insurance coverage issues because of the complexity of insurance language, provisions, terminology and principles, and the area of insurance law. Going up against a big insurance company and their staff of lawyers by yourself can be a daunting task.

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