What if you have a car accident while driving someone else's car?

Answer 1

Accidents in Someone Else's car?Primary Legal and Financial Liability for an automobile accident is always with the driver of the vehicle At Fault, The vehicle owner can also be held financially liable as they enabled the usage. So in most cases the vehicle owners policy will invoke. This is why many people mistakenly assume that the coverage followed the car.

Contrary to popular belief, Auto liability Insurance does "not" automatically follow a car. Cars don't drive themselves. It follows the defined insureds legal liabilities which may arise out of vehicle ownership or operation. This may or may not extend to another driver. Liability follows the named Insureds while property coverage follows the vehicle.

"Coverage from the Owners Policy not withstanding" The Law requires that All Operators of a Motor Vehicle on public roads carry proof of financial responsibility at all times irrespective of ownership. Their is no exception when it's not your car.

Depending on the owners Auto Insurance Policy Form selected, coverage may or may not extend to other drivers. A standard Form Auto Insurance Policy will typically extend coverage for permitted drivers not engaged in a crime. A "Limited Policy" a "Non Owners Policy" or a "Named Driver Policy" while more economic in some cases will not extend coverage at all to any other permitted drivers.

Consult with your Insurance Agent for appropriate coverage. Don't make broad assumptions about your financial responsibilities. You should always verify coverage before driving an unowned vehicle or make sure your own policy follows you as a named insured driver to a replacement or loaner vehicle.

Insurance regulations vary by state regulation so it's always best to talk to an agent in your area. A local agent will be most familiar with your state regulations.