WEDNESDAY, SEPTEMBER 23, 2020
Letting a friend borrow your car may seem simple and harmless, especially if they’re just taking a short trip. Unfortunately, doing so can leave you both in financial danger. Other people aren’t always covered under your car insurance policy in case of an accident. 
Who Is Covered Under My Car Insurance?
Those who are named on the policy are covered under your car insurance policy. This includes you, other people who are frequent drivers and most people in your household. If you live with a family member, an insurer may automatically cover them under your car insurance policy.
However, some policies have excluded drivers. Excluded drivers are people who are not allowed to drive the vehicle. You may add people as an excluded driver on your policy, but insurance providers may also require certain drivers in your household to be listed as an excluded driver. This generally happens because a driver you live with is considered a high-risk driver, such as someone who has a poor credit score or a long history of car insurance claims. If an excluded driver is allowed to drive your vehicle, they will not be covered in case of an accident while operating your vehicle.
If an excluded driver steals your vehicle, however, any damage they cause should be covered as long as you have comprehensive coverage and liability insurance.
What Happens if a Friend Wrecks My Car?
Even if you are not the one to cause an accident, you are still responsible for accidents that happen involving your car. If a friend driving your car (with permission) causes an accident, your car insurance will likely cover them. However, this also means your car insurance premiums will go up. A single accident can raise your rates by 30% or more even when someone else is driving.
Be careful about who you allow to drive your vehicle. If you live with someone who will be a frequent driver, it may be safer to add them to your car insurance policy to guarantee they have access to all of your coverages. Try to avoid allowing people to drive your vehicle if they have a history of poor driving or if you believe they are under the influence of drugs or alcohol. If you allow an intoxicated driver to operate your vehicle, you could face repercussions on your car insurance policy.
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