Letting someone borrow your car is often an act of good faith that shows your willingness to help a friend or family member conduct their daily activities – but sometimes accidents occur while on the road. In the event of a car accident, it’s fair to wonder if your car insurance covers other drivers. In most situations, New York car insurance does cover drivers, but there are also some instances where coverage will not be extended. Read on to learn what to expect when another person gets into an accident in your car and how the team of lawyers at The Law Offices of Joseph J. Perrini, III can help you through the legal process.
Can Other People Drive My Car and Use My Insurance in the Event of an Accident?
For the most part, yes. A consistent rule of thumb to remember is that New York car insurance follows the car, not the driver. This applies to collision, uninsured motorist protection, comprehensive personal injury protection (PIP), and property damage liability insurance. Drivers in the state are required by law to have PIP or no-fault insurance, both of which can be used to cover the medical expenses and lost wages of the driver, passengers, and pedestrians impacted by the crash up to $50,000 per person.
If your own insurance policy provides better benefits than the vehicle involved in the accident, then that coverage may be used to cover other drivers. This applies even if you’re driving someone else’s car. If you’re named on another car owner’s insurance policy, you can access coverage from that policy as well.
How Does Insurance Apply in These Situations?
If you allow someone else to use your car and they are the cause of an accident, your property damage coverage will pay for damage done to other vehicles, structures, or inanimate objects. Bodily injury liability will pay for any injuries sustained by other drivers or passengers. If the cost of the damage goes past the limits defined in your policy and the driver has their own coverage, their policy can be used to cover the excess damage.
New York utilizes a no-fault insurance system, meaning that you file claims with the insurer of your vehicle’s coverage and not the vehicle that caused the accident. If you are a pedestrian or bicyclist involved in an accident, then you would file a no-fault application with the vehicle that hit you.
Comprehensive and collision coverage is not a state requirement in New York. If someone borrows your car and is involved in an accident, you will not receive reimbursement for any repairs or a replacement vehicle.
When Will New York Car Insurance Not Cover a Full Accident or Other Drivers?
There are a few scenarios where a vehicle’s insurance won’t cover some or all of the damage stemming from an accident. Here are a few examples:
The driver drove your car without permission
An auto liability insurance policy only covers the policyholder, the policyholder’s spouse, or child, and most parties are permitted to drive the vehicle. If the driver involved in the accident didn’t have permission to use your vehicle, your insurance company will not cover the damage caused by the crash. It’s important to list all licensed drivers in your household on your policy to ensure that they are covered.
Your auto insurance policy does not cover permissive use
Some insurance companies may not cover permissive use in the policy. Companies may also offer “step-down” policies with limited coverage or increase your deductible when you file a claim. In most cases, permissive use coverage does not cover rental cars.
The driver is explicitly excluded from your policy
Some states allow you to exclude certain individuals from your auto insurance policy due to subpar driving records or a history of drunk driving. It is not currently possible to buy an auto insurance policy in New York if you want to exclude a member of your household who is old enough to drive.
Reach Out to the Office of Joseph J. Perrini III for Auto Accident Support
Whether it’s you or a trusted friend behind the wheel, the aftermath of a car accident can be an emotionally fraught time, particularly when negotiating with insurance companies to provide compensation. When cases get complicated, it’s important to have legal professionals by your side to give you the support and knowledge to get what you deserve.
If you want help with your claim, contact our team at The Law Offices of Joseph J. Perrini, III today to get a free auto accident case evaluation and start the process for you to move forward.
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