Choosing your automobile insurance policy happens to be a tactical move. Firstly, you would run into many options, with lots of insurers ready to secure your unplanned expenses following accidents. Next, it might be confusing to understand the actual benefits of each policy. There might be situations, where you would be left wondering whether or not your policy covers the losses. Particularly, in some situations, the car might be insured, but not the driver. In other cases, you might have an insured car.
However, the person to whom you had handed over the keys in good faith may have been involved in an accident with your vehicle. If you are interested to learn more, reach out to the insurance specialists at Surex.
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What Would Happen If Your Car Is Insured, But You Don’t Have Insurance?
In the first place, you should understand the dangers of driving an uninsured car. In case of accidents, you might suffer injuries. Besides, there might be fatalities at the other end as well. Being an uninsured driver, you would have to shell out the entire amount from your pocket. This would include the expenses for your personal injuries, expenses to repair your car, third-party injury costs, and legal hassles. Therefore, ignoring the driver’s insurance is a bad idea.
Next, there might be a situation where you have insured your car, yet you do not have personal coverage under the same. In these cases, you would get the repair costs for your car covered as a part of the policy package. However, accidents often result in huge hospitalization expenses. In certain situations, drivers need to be hospitalized for prolonged durations, and the expenses mount significantly. In case your insurance covers only your car, you would have to bear the expenses of your treatment yourself.
Therefore, it is recommended to opt for comprehensive automobile insurance that covers yourself, your car, and other cars. Besides, the package should cover third-party liabilities and legal expenses, if any.
What Would Happen If Someone Else Drives Your Car And Meets With An Accident?
In Canada, insurance policies do not follow the driver, but the car. In case you allow someone else to drive your vehicle and they eventually meet with an accident, your insurer would settle the claim. The amount largely depends on the coverage that your policy would provide you with. Besides, this claim would be recorded by your insurance company. This would affect the rates of car insurance that you would be enjoying in the future.
However, while deciding whose car insurance policy would be applicable in these cases, several factors would come into the scene. Have a look at how your automobile insurance package would help under these situations.
Auto liability coverage
With this coverage, you would be able to pay for the damaged vehicle or medical bills of the third party. However, this liability coverage would not be used to pay for the medical bills of the person driving your car, or for repairing your vehicle.
Collision coverage
Having collision coverage as a part of your automobile insurance package would help you arrange funds for repairing your car. However, you need to pay the deductible in these conditions.
Medical payments coverage
In case your car’s driver has got insurance, this might cover up the treatment costs and medical bills after the accident. In case you are the driver, having such coverage would help.
Know About Permissive And Non-permissive Use
As a car owner, it’s imperative for you to know about the permissive and non-permissive use of your vehicle. This largely determines whether your automobile insurance policy would be of any help in case the other person gets involved in an accident with your vehicle.
Permissive Use
You may give permission to certain people to drive your car. Most of the insurers are likely to provide coverage for drivers whom you have added to the policy. Therefore, once the use of your vehicle is permissive, the other person driving your car would enjoy coverage in the instance of an accident. However, in certain states, the coverage for such drivers is reduced.
Non-permissive Use
At times, one of your family members or friends might use your vehicle without your permission. In case they are involved in an accident, you would bear no accountability for the damage. In these cases, the primary coverage will not come from your car’s insurance, but your friend’s. In case the person does not have any insurance, you need to file a claim with your insurer for financial assistance.
As these norms seem complicated, it makes sense to go through the terms and conditions before you choose your policy. Besides, there are certain packages, which permit the owners to exclude drivers, if needed. The reputed insurance specialists can also help you select the right package.
Other Factors To Consider If You Do Not Own A Car
In case you are a licensed driver but do not own a vehicle, you would not need any long-term policy for automobile insurance. However, you might want to borrow your friend’s car temporarily. Under these situations, you need to consider certain factors.
- In case you face an accident while driving someone else’s car, you can benefit from the policy of the owner.
- For certain types of loss or damage, you would be responsible. This largely depends on the owner’s coverage. Some policies, for example, do not provide coverage for collisions. Therefore, you may be required to shell out the expenses for the repairs of the car in case of an accident.
- In case the repair or other costs are more than the limits of the coverage, you may have to pay these costs.
Endnote
It’s a good idea to scrutinize the coverages of both the insurance policies, in case you are willing to borrow a car from someone else or lend your vehicle to a friend or family member. You may also reach out to insurance specialists for professional guidance. In any case, you should be properly informed regarding the clauses of the insurance policies. This would largely keep away unpleasant surprises.
