Owning a car is a big responsibility. How you use your car and who you let drive the vehicle can affect your insurance premiums. But there are some other factors that you may want to consider before letting someone not on the policy borrow your car. Here are three things that you will want to know before letting a friend or family member use your vehicle.

The Situation Matters When There is An Accident

Your auto insurance policy will vary on what it will cover based on what options you have chosen. It also depends on the insurance company that you have chosen to buy the policy from. When an at-fault accident happens, it is a misconception that the accident will affect the driver's insurance, but that is not always the case. The car has its insurance policy and that is the policy that must cover the damages to your car and the other party involved. 

What this means is that your insurance policy will pay for the damages to all affected property regardless of who was driving. In some extreme cases, if the insurance company does not cover non-listed drivers, there is a chance you will have to pay for everything out of your pocket. Or, you may have to pay a surcharge for the next 35 months until that accident comes off the record of the policy.

Follow the Policy

The insurance policy always follows the car, not the driver. So, when it comes down to determine who would have to pay for damages, it would be the policy owner. If you loan your car to a friend, and they end up wrecking your car, your insurance policy will be the primary one that pays for all damages. An at-fault accident surcharges the policy for up to 35 months, depending on the policy's activity and what incentives your insurance company offers for accident forgiveness. 

Who Was Driving Your Car?

No one wants to lend their car to a family member or friend and find out that they were in an accident. What could be even worse is if they had an expired license or was required to have an SR-22. These two scenarios greatly complicate how the accident will be handled. They can also increase your premium by hundreds of dollars per month. 

Before loaning your car ask about the driving record of the person. Gently remind them that it will be your finances affected if there is an accident. Find out what they are using the car for. If they are using the car for business, then you may not have any coverage if there is an accident. 

No one wants to be responsible for an accident. But there are always factors that will play into who ends up having to pay for all the damages. If you have questions about who can drive your car, then please contact us today or visit our website for more answers. We specialize in all types of insurance and can answer your questions with real answers. We look forward to helping you with your insurance needs.