Almost all automobile liability insurance policies include coverage of the named insureds on the policy when they operate a nonowned motor vehicle. This means that your liability insurance will follow you in the occasional or incidental use of other vehicles that you do not own and do not have a legal or equitable interest in. If you do own the vehicle, have a legal or equitable interest in the vehicle, or use the vehicle frequently, but do not declare it to the insurance company, your liability insurance will most likely not cover you in the event of an accident in that vehicle. The rationale behind this rule is so that the insurance companies can charge the appropriate premiums for the risk they are assuming when there will be more than one driver to a vehicle and limit situations in which the members of family or household have two or more vehicles that they all use, but each family member insures only one automobile under their own individual policies. With rental cars or replacement vehicles after an accident, you will want to review your policy to see if and how much of your insurance travels with you when operating a rental car.
Additionally, when allowing someone else to use your vehicle, your car insurance travels with your vehicle, meaning that you are liable if the person driving your car injures someone and your insurance premiums will probably be affected as a result. If the person you lend your car to has auto insurance, their insurance will act as secondary coverage in the event that your policy does not cover all the damage. If the person you lend your vehicle to does not have car insurance, your policy will likely be the only the one that applies and you are responsible for all the damage. If you’ve been injured in an accident, one or more of the above situations may apply and an experienced personal injury attorney at Givens Givens Sparks can help guide you through the different insurance policies that may or may not cover your damages.