It happens all the time: Your sister’s car is in the shop for maintenance and she needs to get to an appointment — but you can’t drive her. So, without hesitating, you let her borrow your car. But what happens if she gets into an accident? Will your insurance policy cover injuries and damage?
Here are the top 5 things to know about insurance coverage if someone else is driving your car:
1. What is covered if someone else is in an accident – causing vehicle damage – while driving my car?
The general rule is that insurance follows the vehicle when it comes to getting your car fixed –but not necessarily for covering your injuries! In Michigan, you’re required to have no-fault insurance on your vehicle, which can cover medical expenses (and more) in the event of an auto accident – but that doesn’t mean you have collision coverage.
Find out what you get from Michigan No-Fault Insurance Benefits and then talk to one of our experienced auto accident attorneys to find out who pays for your car repair if you’ve loaned your car to another driver, or who pays for the repair if you’re driving someone else’s car.
2. Is the driver’s own auto insurance policy relevant when they’re driving my car?
If someone else is injured in an accident while driving your car they must look to their own insurance policy for payment of no-fault benefits. If they have no insurance of their own, they will still be entitled to no fault benefits. The company that will ultimately pay those benefits is pre-determined by an established order of payment priority under the Michigan No Fault Act. Each situation is different, so it’s best to talk to someone on our team of experienced auto accident attorneys to make sure.
3. What if I’m driving a borrowed car that is NOT insured?
For whatever reason, you were put into a situation that ended up with you driving someone else’s car – and that vehicle just so happens to be uninsured when you are involved in a traffic accident.
Depending on how often you’ve driven that car, you may be completely barred from making any kind of insurance claim. If you rarely drive the car, you are still entitled to no fault benefits and may also have a claim for pain and suffering. If your vehicle is uninsured and driven without your permission, you are generally NOT liable. The liability would be with the driver.
4. What if a driver not listed on my policy frequently drives my car and is in an accident?
If your insurance company feels that not listing this driver (such as an adult child living at home, or a roommate) on your policy is a misrepresentation of your vehicle usage, the insurance providers may decide that damages may not be covered. If you do have a frequent driver, talk to your insurance carrier about adding them to your policy.
5. What should I do if someone is in an accident while driving my car?
There can be all sorts of variables involved when someone else is involved in a collision in your car.
The top 5 things to know about insurance coverage if someone else is driving your car is a basic guideline, but the circumstances of all situations vary. If someone is in an accident while they are driving your vehicle, be sure to talk to the experienced auto accident attorneys at the Mike Morse Law Firm about any insurance claims. Our team can help you get the most from your benefits.