Most people think nothing of loaning their car to a visiting relative or friend to enjoy the sights or take a quick trip to the store. Before loaning out your vehicle, you should make sure the driver is covered on your auto insurance policy. In general, auto policies cover two types of drivers: those listed on the policy (household members) and those who occasionally take your car for a ride. Here’s a brief breakdown on insurance coverage for each.
Relatives who drive your vehicle from time to time while visiting your Arizona home fall under the category of occasional driver. They are protected under your auto insurance coverage, according to the terms of your policy. Under some policies, limits for liability coverage may be lower for occasional drivers than those who regularly drive your car.
If your visiting relative is involved in an accident while driving your vehicle and damages exceed your insurance limits, you (as the policy owner) could be held liable. You’re also expected to pay any deductible on the policy when making a claim, even if someone else was driving. Before loaning one of your vehicles to a visiting relative, make sure he or she is a responsible, licensed driver.
Relatives and Non-Relatives who are licensed drivers and members of your household are covered under your insurance policy. This includes teen drivers, parents, grandparents or any other relatives who live with you and use your vehicle frequently for work, school, or leisure activities. At Copper Mountain Insurance Solutions, we encourage our policyholders to list all licensed drivers in their household on the same policy to ensure they receive full protection in the event of an accident. If these drivers are not listed on your policy most insurance companies will not cover the claim.
If you have any questions concerning auto insurance coverage or costs, contact us at 602-412-3366.