Insurance companies are making changes to who is covered while driving your car and you may not be aware of it. It used to be that “the insurance follows the car”. So, if you asked someone to run to the store to get milk during the Thanksgiving holiday and they were involved in an accident, your insurance would apply. Simple enough.
Now, however, we are seeing a change in this. More and more insurance companies are shifting towards looking to the driver’s insurance company to provide the coverage. If you think about it, this might not be so bad. If your policy covers the accident as the car owner, you would then have an accident on your insurance record. Even though it may not result in an increased premium, it could prevent you from having lower rates you would have otherwise earned. If the insured driver was responsible for the accident, why not have their insurance pay for it? Why should you have an accident they were involved in on your record?
Some of the companies are doing this on a “but we got your back” basis. If for some reason the driver’s insurance policy will not apply to the situation or the driver has no insurance policy, they will cover the accident. This sounds happy-happy, but there can be snags. If the accident involves one company that has their policy follow the driver and one that follows the car – there can be a “discussion” between the two companies as to whom is going to pay the claim. They want to verify each other’s policy language and document their files, quite possibly causing a delay in your car getting repaired.
But some of the companies are issuing policies that state if the driver’s policy does not cover it or they have no insurance, there is no coverage for the incident. You could be left holding the bag or trying to collect against the driver. Not a good thing.
If you do not know what happens when someone else drives your car, ask your agent. Better to know now, than after an accident. If you are dissatisfied with your answer or service, please call us at 419-732-3171. We look forward to being of service.