Standard auto insurance policies cover policyholders, listed drivers and occasional drivers who use the car with the permission of the owner. So, owners won’t be in legal trouble when they let someone else drive their vehicles on occasion since they would be covered by their policy. Essentially, an occasional driver is someone who doesn’t live with you and doesn’t have regular access to the automobile insured. Most companies describe occasional use as less than 25% of the total usage.
Usually, vehicle owner’s insurance is the primary, even if the permissive use driver has his/her own insurance, which acts as secondary in cases where the owner’s coverage isn’t sufficient. If you have a standard liability only policy it would pay for others injuries and damages even when someone else was driving your car with your permission.
A standard full coverage policy would insure someone else, who is rarely using the vehicle with permission, against third party Liability claims, and include Collision and Comprehensive for damages to the vehicle. A claim would be registered on vehicle owner’s policy even if someone else was driving and they would face premium increases starting from the next renewal. Also, they would have to settle the deductibles.
Under normal circumstances, it should be fine to let a friend ride your car once in a while. It would be perfectly legal and he/she is insured under your insurance.
Yet, policyholders should still check the full picture with their providers because policies vary as some of them are restrictive and come with conditions. Furthermore, some policies limit the coverage for occasional drivers or require higher deductibles.
For example, there are policies that allow only listed (no occasional) drivers. These may have such conditions because they offer considerable discounts compared to standard ones. Quite a few people are happy with this arrangement. They don’t anticipate anyone else using their cars and therefore they would rather spend less on car insurance now.
These limitations may be lifted by paying the additional cost. It is not a bad way of saving money when people know exactly who would be allowed to use the vehicle. Also, it is a good excuse to turn down people if they don’t like the idea of lending it. So, people can check their policy documents to figure out what they are allowed in terms of lending their autos. They can also call the agent to arrange more restrictive policies in order to save money or get the limitations lifted.
In addition, some policies may exclude people under a certain age. Some companies attach such restrictions to control risks and premiums. They may have a condition that prevents anyone under the age of, say, 25 driving the insured car. Sports and utility vehicles often have this type of limitations because experience is essential to handle them.
And some people may actually need to be included as listed drivers. For example, a nanny or a nurse who is working for you may not be considered as someone who has an occasional access to your automobile when they work for you and need the car to perform regular tasks like picking up children. They may be required to be listed and considered for premium calculations.
Also, drivers who are living with you in the same household should be included in your auto insurance policy and therefore some companies won’t accept them as occasional users.
It may be easy to just hand over the keys but owners are responsible for accidents and tickets involving their vehicles. People don’t care much about who was behind the steering wheel at times and go after the owner, as they know that usually insurance follows the car. Therefore, you need to check the occasional driver coverage before letting someone else take a spin. It is best to ensure you are protected against the losses they may cause.