The cleaning up after a car crash is a complete mess. It gets messier in case you are not driving your car and your friend was the actual person behind the wheels.
When you crash a car, it is obvious that you need to pay for that. In reality, you are actually paying the insurance company, and the insurance company will offer compensation to the victim. Everything is clear till now.
Now, what if your friend was driving your car and it crashed?
The car is registered with your name; you are the responsible person for paying the insurance company. Now, will the same insurance company pay for the car crash?
Or…
Just because your friend was driving, can the insurance company refuse to pay for the car crash?
Only an auto accident attorney in Atlanta GA will be able to guide you with the exact process. Still, here we will discuss this matter.
Car Insurance Follows The Car, Not The Driver
Usually, most auto insurance follows the car and not the driver. So, in case you are allowing your friend to drive your car, your own personal insurance is primary for anything and everything that can happen to your car or the driver.
For example, your collision insurance will cover all the damage that has happened to your car. On the other hand, your car liability insurance will cover the damage or injury that has been caused to another driver by your friend.
Your friend might also have insurance. But when they are driving someone else’s car, the insurance will not cover the damage.
Your insurance will usually pay for the crash that your friend has caused, as long as your friend passes a legitimate driving license and the individual does not regularly borrow your car. In case they are a regular driver of your car, you must have listed them on your policy.
The insurance that your friend has would be considered secondary, as secondary coverage, in case the limits of your insurance are used up because injury and damage bills exceed your policy amounts.
Here, we also like to mention that all policies are not the same. An experienced Atlanta Auto Accident Lawyer will be able to offer you a proper idea about that.
For example, some particular auto insurance policies mostly exclude other drivers. They also do not offer coverage for even family members in your household until and unless your policy lists those drivers specifically.
These types of step-down policies are sold at a really low price by sub-standard carriers. As they exclude all other drivers apart from the primary driver and also offer limited coverage for those other drivers, they usually come cheap.
Permissive Vs. Non-Permissive Use
When your friend has permission to drive your car, it is “permissive use.”
And, in case your friend borrows your car without taking your permission, it is considered “non-permissive use.”
In the case of “non-permissive use,” the auto insurance of your friend will come into primary coverage all of a sudden. But, in case your friend does not hold any insurance, you might be required to turn in your policy to cover injuries or damages.
Suppose the cost of damage that is caused by your friend while driving the car is around $15,700. Now your insurance has a limit of $10,000. So, your insurance will pay that amount, and the additional $5,700 has to be made up by your friend’s auto insurance.
Even though your auto insurance policy is enough and is capable of covering the entire damage bill, your insurer might also try for recovering money from the auto insurance of your friend. This process is known as subrogation.
Other Consequences
In case when your friend was driving your car, and the car crashed, you were not in the car, the insurance rate at the time of renewal might go up.
The rates might get higher in case your friend is living in your home and also brings your car on a regular basis, and you have not been informed by the insurance company. In some cases, the insurance company might pay the claim but then cancel your policy.
To know more it will be best to consult with an Atlanta Auto Accident Lawyer.
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