Auto Insurance - Can Someone Else Drive My Car and Still Be Covered?

I get this call about once a month from one of my Ann Arbor insurance clients:

Is it okay for someone else to drive my car?

For many people the answer to this question seems like an obvious 'yes', but it's actually a very good question because there are some hidden dangers anytime you let someone borrow your car. Even if it's only for a few hours! Did you know that the insurance company can deny coverage (i.e. not pay on a claim to fix your car) if you let someone borrow your car for longer than an extended period of time (actual days may vary by insurance company, so be sure to check) if you don't disclose the operator?

That seems pretty severe, right? Why would the insurance company do such a mean thing?

Well, I know you wouldn't be this devious, but some people actually try to scam Ann Arbor Insurance companies by insuring a car for their brother, for example, who has 3 DUI's, 4 at-fault accidents, and hasn't had his own insurance for the last 7 years. They do this to try and save money, but it has serious consequences. The moral of the story is, always tell your insurance company who will be driving your vehicle if longer than a few weeks just to be safe.

Another great question I get on this topic from my Ann Arbor insurance clients is, "Who's policy will cover the damage to my vehicle if they wreck it?" The answer is, "Your policy will have to pay for it." Another hidden danger, especially if the person borrowing your car doesn't have their own auto insurance comes into play if they were to have a bad accident in your car and were sued by another party. Your liability coverage could have to defend them and you may be putting your assets at risk.

So, while it may seem like the answer is always yes to the question, "Can someone else drive my car?", there are issues that should make you pause and ask if this is a good idea. If you're ever in doubt, call your insurance agent and discuss the details with them.