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Before driving a friend’s car or letting a friend drive yours, it’s wise to look over your auto insurance coverage. Are you covered regardless of whose vehicle you’re driving? Is someone else covered when they drive your car? This will depend on the terms of your policy. However, the guide below explains how matters like this are generally handled. 

When the Vehicle Is Covered

Both comprehensive and collision coverage apply to the vehicle. Comprehensive auto insurance pays for damage caused by theft, vandalism, and hail, whereas collision insurance handles damages caused by wrecks. Typically, this will kick in regardless of who was driving at the time of the accident—so long as he or she had a valid license, had permission to borrow the car, and was not impaired at the time. 

When the Policyholder Is Covered 

Liability insurance usually follows policyholders. This coverage protects them from financial liability by paying for property damage and bodily injury that others sustain in collisions they cause. In the state of Nebraska, motorists must purchase at least $25,000 in bodily injury per person, at least $50,000 in bodily injury per accident, and at least $25,000 in property damage. If you cause a collision while driving a friend’s car or a dealership loaner, though, your own liability insurance might not apply until the owner’s policy is maxed out. 

When Neither May Be Covered

auto insuranceRemember that every policy is different and that car insurance laws vary by state. If you live in Nebraska, which happens to be a fault state, for example, but you get into an accident in a no-fault state, recovering compensation will be challenging unless you purchased the optional uninsured motorist coverage. There are also exceptions to the rules listed above.

For example, while your collision coverage should protect the vehicle regardless of who is driving, the insurer might not pay out if another member of the household who has regular access to your car crashes it. Policyholders have an obligation to add all regular drivers to their policy. There may also be exceptions when driving a rental vehicle, which is why optional insurance plans are often offered.

 

For auto insurance that will cover both you and your vehicle, turn to Accredited Insurance Group, Inc. Based in Omaha, NE, this independent agency is proud to provide a broad range of products. For more than 25 years, individuals and businesses throughout Nebraska and Iowa have turned to them for help planning for all eventualities. To request an auto insurance quote, reach out online or call (402) 334-1780.

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