What happens if you let an uninsured driver use your car

[gracie1]

I was just involved in an accident by a vehicle that was borrowed from a friend. The insurance company covered all the costs, even though that person was not listed on the policy. They stated the same thing....it's the car that was insured.

Also, to top if off the girl and her boyfriend both had no license to drive, because they had been suspended from a previous incident. But the state police weren't even the least bit concerned that they were driving without a license

 

[angierae]

Not sure that this makes sense to me. If it is the car and not the driver that is covered why would people bother to get riders for kids who have lots of tickets or accidents. Think about that, why wouldn't they just let the kids drive the car if they are covered anyway. The answer is that yes you insure the car, but you are required to list all drivers that meet certain requirements. The amount of insurance paid for the car depends upon who is driving it and how they are driving it (e.g. driving history, age, marital status, city versus country, a 50 mile daily commute versus a sahm running around town, etc.). The rates are based upon many factors related to the driver(s).
If someone who meets the requirements to be listed (which may vary), but is not listed (and paid for), the insurance company can and will deny coverage

.

Because there's a difference between someone borrowing your car occasionally and someone who lives in your house, since it is assumed that someone living in your house will be using the car more regularly. That's why you have to add teen drivers once they start driving. If they had their own car, you could just insure them on their car, and exclude them from your cars totally if you wanted to.

 

[rlduvall]

If he is a permissive driver of the vehicle and is not specifically excluded on the policy, he is covered while driving her vehicle. What she needs to be more concerned about is if he has a wreck she could be sued individually for negligent entrustment - subject to each state's statutes. And if the situation is warranted, could go into punitive damages which is not covered by insurance. BUT, that's a worst case scenario, i.e. drunk, while robbing a bank, hops a curb and hits an innocent bystander.

 

[robsmom]

Because there's a difference between someone borrowing your car occasionally and someone who lives in your house, since it is assumed that someone living in your house will be using the car more regularly. That's why you have to add teen drivers once they start driving. If they had their own car, you could just insure them on their car, and exclude them from your cars totally if you wanted to.

And this is exactly the point that I was making. To generically say that if the car is covered anyone with permission to drive your car is covered is just not true. The insurance company can and will deny coverage if they deem the person driving the car to be someone that should have been on the policy under the details of the policy that the person agreed to such as someone living in the house or other criteria.

 

[PatMcDuck]

Insurance varies from state to state by largely - cars are insured, not drivers.


The only problem would be if she somehow misrepresented her situation on the application for car insurance which asks how a car is typically used. For example, if she claimed the 24 year old didn't live in her household and he does. There are some states that will allow a policyholder to exclude a certain driver from a car. If she has done that --- then there is obviously problem.

In NJ, I could only exclude my adult sons (who lived at home) from my policy, IF they had their own car, registered and insured under their name. And yes, I had to provide proof of that to my insurance co. They were still listed on my policy, but as "unrated". NJ also asks questions about each car, who drives it, and for what % of the time.

But I think other states are different. I have a friend in Pa. who did not, and does not, list her teen aged boys on her policy...... they don't own a car, and drive hers with permission, and have licenses..... (and she used to work in the insurance industry there). I never understood that, because NJ most definitely would not allow that.

 

[DebMcDonald]

But, IMHO, it sounds like your coworker is quite the enabler. He's been caught stealing cars and robbing houses and yet she still allows him to live in her home?

Dont' get me wrong, I really like this person, she a good friend "at work" but enabler is putting it mildly when everything went down she was strong and going to change things - a month later she's all of a sudden letting him use her car - which she never did previously, I think she thinks he's all changed. This person doesn't need any further issues and my only reason for questioning the insurance in the first place was for her own protection.

 

[PrincessDadx2]

But I think other states are different. I have a friend in Pa. who did not, and does not, list her teen aged boys on her policy...... they don't own a car, and drive hers with permission, and have licenses..... (and she used to work in the insurance industry there). I never understood that, because NJ most definitely would not allow that.

Insurance is State regulated, so every State can be different. The bottom line is to follow the rules of your policy and not commit fraud to the insurance company by misrepresenting how the vehicle is used.

As previously stated, in most States it is cars that are insured, not drivers, but there are rules that govern drivers.

If you do not follow the rules then the insurance company can deny the claim or perhaps collect the back premiums that should have been paid. It would be the same as if you said you only drove 5 miles to work, but your actual work was 50 miles from your home. You get a lower premium, but have committed insurance fraud.

 

[eliza61]

Yes, driving without insurance is against the law and no her insurance company won't pay if he causes any damage to her vehicle.....some people are idiots unfortunately!!

wait, I thought it was the car that had to be insured not the driver. For example my 19 year old has a valid license. He does not own a car nor does he have insurance. If he gets into an accident, the car owners insurance should cover them (of course depending on the no fault issues).

My son has borrowed his grandparents car and is not listed on their policy.

 

[MSSANDRA]

In NC you must prove that you are listed on your parents insurance before you can get you license at 16. I think we had to list which car he would drive most often but he was allowed to drive any of the cars. When he got his own car two years later. It was simply added to our policy and we can still drive whichever car. Now as far as driving other peoples cars, I think it is just a risk you are willing to take. When my parents were alive, I would drive their cars all the time, and we are starting to drive my FIL's car more now. My sister has NEVER let anyone, not even her DH, driver her car so.....

 

[eliza61]

In NC you must prove that you are listed on your parents insurance before you can get you license at 16. I think we had to list which car he would drive most often but he was allowed to drive any of the cars. When he got his own car two years later. It was simply added to our policy and we can still drive whichever car. Now as far as driving other peoples cars, I think it is just a risk you are willing to take. When my parents were alive, I would drive their cars all the time, and we are starting to drive my FIL's car more now. My sister has NEVER let anyone, not even her DH, driver her car so.....

So what happens if say your car broke down and you borrowed your sisters car? Your saying her insurance would not cover the car if you got into an accident or were hit?

I'm calling my insurance now.

 

[Anastasia]

In NJ, I could only exclude my adult sons (who lived at home) from my policy, IF they had their own car, registered and insured under their name. And yes, I had to provide proof of that to my insurance co. They were still listed on my policy, but as "unrated". NJ also asks questions about each car, who drives it, and for what % of the time.

But I think other states are different. I have a friend in Pa. who did not, and does not, list her teen aged boys on her policy...... they don't own a car, and drive hers with permission, and have licenses..... (and she used to work in the insurance industry there). I never understood that, because NJ most definitely would not allow that.

I live in PA and my 18 yo son is definitely listed on my insurance, and has been since he got his license. She may know some way around the system, but I don't think that the way she is doing it is the norm.

 

[It'sWDW4me]

Dont' get me wrong, I really like this person, she a good friend "at work" but enabler is putting it mildly when everything went down she was strong and going to change things - a month later she's all of a sudden letting him use her car - which she never did previously, I think she thinks he's all changed. This person doesn't need any further issues and my only reason for questioning the insurance in the first place was for her own protection.

Unfortunately, some people stick their head in the sand or put on the rose-colored glasses until they're, quite forcefully, slapped into reality. You can offer advice but there's not much else you can do but sit back, grab the popcorn and watch the train wreck unfold. Don't invest too much of yourself (i.e. getting "pissed") into something that you have no possibility of changing, KWIM?

 

[kellia]

Not sure that this makes sense to me. If it is the car and not the driver that is covered why would people bother to get riders for kids who have lots of tickets or accidents. Think about that, why wouldn't they just let the kids drive the car if they are covered anyway. The answer is that yes you insure the car, but you are required to list all drivers that meet certain requirements. The amount of insurance paid for the car depends upon who is driving it and how they are driving it (e.g. driving history, age, marital status, city versus country, a 50 mile daily commute versus a sahm running around town, etc.). The rates are based upon many factors related to the driver(s).
If someone who meets the requirements to be listed (which may vary), but is not listed (and paid for), the insurance company can and will deny coverage

.

What I meant to say was that the insurance company can make you sign a waiver saying that they won't drive your car. If your spouse or child who lives with you has a lot of tickets or points on their license, I know people who have had to sign something saying that person won't drive their car. If they don't sign it, they have to look for another insurance company.

I did not see in the original post that her son lived with her.

We added dd recently when she got her license, but I've been told that your insurance company would "find out" anyway when you get your license and that's how they tell who lives with you. I thought that didn't apply once they were 18, though, unless they were deemed a "risk". We got dd her own car so our insurance didn't go up since she'd only be an occasional driver of our vehicles, then. It was much cheaper!

 

[cvjw]

She better hope that her son doesn't get into an accident driving her car without proper insurance. My 16 year old son was hit by a motorcylist. The police report and multiple witnesses all state that my son wasn't at fault. The man that hit my son is convinced that he wasn't at fault and has hired a lawyer to get him out of the ticket he was issued and go after our insurance company. We have great coverage with State Farm, so we are covered, but it has been a HUGE headache trying to deal with this man. I would hate to face this situation if my son was the driver of the vehicle and didn't have his own policy with State Farm. I would think that State Farm would not get him a lawyer to defend against a lawsuit - she would be on her own.

 

[bpesch]

People are not insured, cars are. But if he doesn't have a valid license and she knows it, that is problematic.

 

[scrapquitler]

If I remember correctly from a conversation MANY years ago with my insurance agent, when you have car insurance it's the CAR that is insured, not the person driving said car. You can have different insurance on different vehicles - i.e. collision on one but not the other. So as long as your co-worker's son has a valid driver's license, she's given him permission to drive her car, and she has insurance current on her car... there is absolutely no problem. Her son needs to buy car insurance only if he owns his own car. Should he hit someone while driving her car (assuming he does have a valid driver's license), your co-worker takes the risk of being sued since she is the owner of the car.

This is exactly how my insurance agent explained it to me.

 

[Elainey]

It is the car that is insured, not the driver of the car--anyway, that's the way our policy is.

 

[teller80]

But if it's the car that's insured, why does my insurance cover rental cars?

 

[minushka72]

What I meant to say was that the insurance company can make you sign a waiver saying that they won't drive your car. If your spouse or child who lives with you has a lot of tickets or points on their license, I know people who have had to sign something saying that person won't drive their car. If they don't sign it, they have to look for another insurance company.

I did not see in the original post that her son lived with her.

We added dd recently when she got her license, but I've been told that your insurance company would "find out" anyway when you get your license and that's how they tell who lives with you. I thought that didn't apply once they were 18, though, unless they were deemed a "risk". We got dd her own car so our insurance didn't go up since she'd only be an occasional driver of our vehicles, then. It was much cheaper!

I am not a licensed insurance agent, however I do work for an insurance company in Massachusetts so I know some of this info for MA.

To the OP: Your friend's son could very well be covered under her policy. Unless I mis-read, you do not know if he is listed as an operator on her policy. You mentioned that she is not paying extra for him which may be true. Since he is 24, it is possible that he has had his license for 6 years now which classifies him as an experienced driver. Age and gender are not used in rates in MA so that will have no effect. If he has points on his license (from tickets or accidents) then that is what could increase her rate. If his driving record is clean then she is not paying any extra to have him listed.

MA policies require that all licensed household members and all customary operators be listed on a policy. If a person has their driving record charged on their own policy, they can be deferred from having their record charged on other policies for which they are listed drivers as long as there are other drivers on the policy to rate. The other option to not being charged or rated on a policy is for the operator and policyholder to sign an exclusion form stating that person will not be driving the vehicle. In both of these cases, the person is still listed as a driver on the policy.

If a person is not listed as a driver and gets into an accident, the insurance company can do a few different things. 1. They can cover the accident, add the driver and continue the policy like normal (usually for good customers who did not realize they had to list everyone). Depending on that drivers record, the premium may increase if they end up being the rated driver. 2. The company can deny the claim. 3. They can also cancel the policy for material misrepresentation for failure to list a customary operator and deny the claimr. 4. I have also seen a few times where the claim is covered and the driver added onto the policy retroactively and the customer is billed for the additional premium back to the start of the policy.

 

[pyrxtc]

Touchy this morning are we - Because this mother has had her house searched by the police recently - her son has stolen two cars, he robbed three houses and if he gets into an accident and her insurance won't cover her, she's going to be up a creak more than she already is recently due to her son. So I was encourging her to do the right thing so she might not be out a car in the end, but according to everyone her car would be covered anyway and let's hope her son is not using it to go rob more houses.....

In MA, the driver is insured and unless the son is on her insurance then he won't be covered because he lives in her household. If he lived somewhere else, he would be covered.

In NH, you are not required to have insurance at all. However, it is illegal to get in an accident without insurance.