New York State car insurance policies follow the vehicle, not a driver but does cover other drivers. Car insurance policies offer four kinds of coverage – property damage, bodily injury liability, personal injury protection and supplementary underinsured/uninsured motorist protection.
Allowing Somebody To Use Your Vehicle Who Is Not Listed On Your Policy
Suppose someone other than you is driving your vehicle with your permission and have gotten into an at-fault accident. In that case, the property damage coverage pays for the other vehicles’ damage or any damage to inanimate objects. Injuries will also be paid for through the policy’s bodily injury liability coverage.
Bear in mind that any damage cost beyond your insurance limits will be addressed by the insurance company of the person borrowing your vehicle (if they have insurance). See it as a second line of coverage in an accident, but you could be responsible for the excess in damages personally if that driver has no insurance or low limits of coverage.
With the personal injury protection coverage, medical bills and expenses are taken care of (up to the covered amount) no matter who is at fault in the accident.
Is Collision and Comprehensive Coverage Necessary?
Drivers in New York State are not required to attain collision and comprehensive coverage, but without it, you could be left without a vehicle. If you allow someone to drive your vehicle and get into an accident, not having this coverage means paying out of pocket for the expenses of repairing it. You can always ask that your “friend” cover the cost of the damage, but they may not always, and it’s on you to handle the financial aspects of the repair. If you’re shopping for insurance in New York it’s important to request options with and without comprehensive and collision coverage to see if the price difference is worth the risk of forgoing the protection of your own vehicle.
Lack of Permission and Vehicle Insurance
When an unknown person is driving your vehicle, your insurance company absolves itself from the liability aspect for any accident that occurs during this time. But, will cover damage to your stolen vehicle as long as you carry comprehensive coverage.
Are In-Household Licensed Drivers Covered Even Without Being Listed On A Policy?
Insurance companies ask prospective customers about any licensed driver in the household, but it does not have to be listed on it. However, since they can access a vehicle and drive it, they could experience an accident during that time.
It’s not uncommon for households to not list a driver due to their bad driving record or young drivers, which can significantly increase premiums. When people try to save money this way, they could find themselves in serious trouble if the unlisted driver is considered at fault in an accident. This is especially true if the accident causes significant damage or death.
For example, your non-covered but licensed teenager gets into an accident where a major injury is the result of the incident. The injury claim is a million dollars or more. In response, your insurance company may elect to cancel the policy or deny the claim altogether. If they deny it, you are financially responsible for the accident and resulting injury.
This is why it’s essential to do two things:
- Include everyone who is licensed and living in the house on your insurance policy
- Ensure any person you let borrow your vehicle has their own insurance policy.
Some people looking to get cheap NY car insurance don’t disclose all drivers in their household, especially young drivers. Hiding a driver to save money can actually cost you more money in the long run.
When a person borrows your vehicle, they borrow your insurance too.
