Do you let friends or relatives drive your car? Prevent "Surprises"!
Do you occasionally lend your car out to a relative or a friend? If he or she gets into an accident, your auto insurance may not cover it.
Here are some tips:
- Family policies offer broader coverage. Any relative in your household and any other person who has your permission to drive your vehicle is covered. I think the keyword here is "Family Policy". Check it out with your insurance agent - especially if you're single.
- Named insured-only policies are more restrictive but they are often 10% to 15% cheaper than family coverage policies. As the name implies, they cover only the driver named in the policy. If you lend your car to a friend, your child or even your spouse and there's an accident? The policy will not pay out.
- Not sure what type of policy you have? Contact your insurance company. If it's a named insured only policy, never let anyone drive your car.
- If other people are sharing your car, change up to a family policy as the extra premium cost may well be worth it if there is an accident.