If you are in a car crash and the person driving the other vehicle is not insured, you may not be out of luck. Not only can you sue that person directly or file a claim with your own insurance, but the vehicle, if owned by another person, may still have insurance coverage.
Car insurance covers the vehicle on the policy and is not specific to the driver. For example, if you lend your vehicle to someone and they are not insured, your insurance may apply. The same is true if you get into a crash with someone driving a friend or family member’s vehicle without their own insurance.
Omnibus Clause
There may be a clause in the insurance policy called an omnibus clause. This clause covers any driver, regardless of who it is, as long as they have permission to drive the vehicle.
Insurance Coverage: Drivers Without Permission
If someone takes your vehicle without permission, then you will not be accountable for damages or injuries that driver causes. For instance, if a thief takes your vehicle and crashes, then you will not be liable for injuries. You may however need to use your insurance to cover your own property damage claims.
Liability Insurance
If a friend takes your vehicle with permission and crashes but has their own insurance, your friend’s insurance may be primary and necessary to cover damages for injured parties.
If you are in an accident, it is important to gather as much information as possible from the other driver. Ask for registration in addition to proof of insurance. In many cases, several insurance policies can apply to assist in making injured parties whole following a crash.
The Merdes Law Firm has been helping injured Alaskans for more than 30 years. It’s who we are. And while we hope you never need us … We’re here if you do. ~ Ward Merdes
Source: esurance, “Myth: Car insurance follows the driver“
