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Who can drive my car and who can’t?

There is a lot of question surrounding the ability to drive another person's vehicle and how that situation will be handled by insurance companies if an accident were to occur. So let's explore the ins and outs of this scenario.

Is it okay for someone else to drive my car?

Yes, it is perfectly acceptable to for another individual to drive your vehicle. However, it is always best to ensure that the vehicle being driven is insured and the driver of the vehicle has both a valid driver's license and an active insurance policy. Provided all of those items are in place, if the person driving the vehicle were to cause an accident the owner of the vehicle's insurance policy would be first in line to cover the accident. This coverage would include paying for the vehicle damage, providing a rental car to the owner, and taking care of any medical bills that arise. This is done for the convenience of the not at fault party and speeding up the claims process. Once the accident is resolved and all parties are back to normal, the vehicle owner's insurance company does then have the option to work with the driver's insurance company to collect the money paid for the claim. This process is called "subrogation". During this process, the driver's insurance company will repay the vehicle owner's insurance company for the funds paid after the accident. While possible, it is important to note that thesubrogation process does not occur in every situation.

What often goes without discussion is how this situation will impact the vehicle owner's policy if the driver does not have insurance. Unfortunately, in most cases these types of claims do end up as ratable incidents on the vehicle owner's insurance policy. Meaning that most likely this incident will increase the vehicle owner's insurance policy. The reason this occurs is because the insurance company has to be made whole again after paying for an accident by an unrated driver. If there is not another company available for reimbursement, the insurance company increases the client's rates in an effort recoup the losses. This process will occur over the next three years.

A brief example:

Example: Client A owns a vehicle. Client B is Client A's friend and needs to borrow Client A's car. Client B does not have any insurance and gets in an accident with Client A's car. Client A's insurance company will be the onepaying out on the claim and the accident will be chargeable to Client A's insurance policy on his next renewal. If Client B had insurance, his insurance company would pay Client A's insurance company back the money that was paid out on the claim and Client B would be the one assessed the at fault accident on his driving record, which in turn would impact Client B's rates, not Client A's.

So in summary, although it is not a legal requirement for the person driving your car to have insurance; it is something that should be strongly considered as a responsible vehicle owner should you let other drive your vehicle. The simple question of "Do you have insurance?" can save you a lot of money and headache in the future.

Give us call or start your Allied Insurance Quote today!

By Brian Cook