Many people want to know the answer to this pressing question. If someone borrows my car are they covered under my policy?  Letting someone borrow your car takes a lot of trust, and you want to make sure that you, your car and the person borrowing your car are protected. 

In many cases auto insurance is attached to the car, not the driver.  This means that regardless of who is driving the car, they are usually covered, at least for liability coverage.  While most drivers will be covered, there are issues that may affect your policy that you should consider.

Did you give permission for that person to drive the car?  This is to protect you should your car be stolen or borrowed without your permission.  If this is the case, the illegal driver’s insurance company will have to pay for the damages and your policy should not be affected.

Does your policy exclude that person or others from driving your car?  Some insurance companies will charge a higher premium to allow multiple drivers to drive one car.  Know your policy before you let someone borrow your car.  If you allow someone to drive your car and they are not covered, you may have to pay the damages and this could increase your premium.

You will also want to be aware that ever if someone else is driving your car, if they get into an accident, it could affect your rates. 

If you are in an accident the owner of the car’s insurance is usually what covers the accident. However, if they have little or no insurance, your policy may be triggered once the other policy’s limits are exceeded.

As always, be sure to know your policy and contact your insurance specialist for details.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

After you purchase a new car from a dealer or a private seller, you must have it insured.  Not carrying insurance on it is dangerous and illegal.    If you don’t have insurance already, you should get a quote on the vehicle you’re planning to buy beforehand, and make arrangements to purchase the policy at the same time you buy the vehicle.  If you have insurance already, car dealers will often tell you that you have a “grace period” or “30 days of free insurance”.  This is misleading.  While the automatic coverage provisions of most insurance policies do give you a certain period of time to add the car after purchase, you may need additional coverages, higher limits (if you lease), or other changes.  Additionally, you may wish to purchase mechanical breakdown coverage instead of an expensive extended warranty.  For all of these reasons, it is important to call your agent or insurance carrier immediately after purchasing a car to make sure you are fully covered.   You will want to check with your individual provider to get the specifics of your auto insurance policy.

If you are purchasing a car with financing, or leasing a vehicle, in many cases the dealership or bank will require you to at least have enough physical damage coverage to cover the cost of the vehicle.  You will have to have this before you drive the car off the lot.  Again, this will depend on the dealership.

With insurance companies being online, it is not hard to add a vehicle that day.  If you have an auto insurance policy through PoliSeek, you can log on at https://www.poliseek.com/add-vehicle and update your account.  In other cases you can call right from the dealership and have the new car added and be fully covered.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

In harder economic times, people are looking to save money in any way they can.  Many people will try to save by reducing their auto insurance to the state’s minimum requirements.  While in theory this seems like a good idea, there can be many flaws in this plan that can end up costing people more money if they should happen to have an accident.  

For example purposes, let’s look at the state of Florida. In Florida, minimum coverage is $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL).  If you only have the minimum amount and you have a semi-serious accident, your coverage will be exhausted, and then you will be required to pay the rest out of pocket.  Depending on the amount, this out of pocket expense could be significant.

You also have to determine what type of area you live in.  If you frequently commute to an area where people drive more expensive than average cars, you may want to increase your policy.  Even minor accidents with expensive cars can go beyond minimum coverage’s.

If you need assistance with determining what type of coverage is best for you, contact http://www.poliseek.com to help you find the best coverage at an affordable rate.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.