Car Insurance Issues When Someone Else is Driving Your Car

Whether it is for an emergency or an errand, we have all been in the situation where a friend or family member is in need of a vehicle. And unfortunately, sometimes these borrowers get into an accident, either by being negligent, or through no fault of their own. It is extremely important to understand how your insurance policy will handle this if you ever find yourself in this situation. We highly recommended going over this policy yourself and contacting your current policy holder to see how they handle this situation. You might be surprised by the result and you will want to change your policy or go with a different auto insurance provider entirely.

Vehicle Damage

There is some good news. Under most plans, insurance will cover damage to the car. The insurance follows the car, so any damage caused to your car will be covered by most insurance plans, regardless of who is driving it. This applies mostly to plans that have collision coverage. Each insurance plan is different, however, and it is important that you have a good understanding of your plan. An experienced auto accident attorney can help you determine what is covered and what is not.

Injuries

The same rule is not necessarily true for medical coverage. While Michigan law does require drivers to have no-fault insurance on the vehicle, which often covers medical injuries, it does not necessarily apply to other drivers. No-fault insurance is a complicated matter. Visit this guide, published by the government, to learn more about no-fault automobile insurance in Michigan.

The Driver’s Insurance Policy

If the driver of the car, who in this situation is not also the owner, is injured, his or her insurance policy may cover no-fault benefits including medical coverage. If the driver does not have insurance, the law determines who will pay determined by payment priority.

Frequent Drivers of Your Car

If you frequently allow another person to use your car, such as an adult child or a partner, it is important that you consider putting them on your coverage. Failure to inform your insurance company of such a situation may result in the insurance provider refusing to pay if that person gets into an accident. Thus, it is important that you continue to update your usage of the vehicle with your insurance company to be sure that there are fewer issues in the unfortunate situation of a car accident.

What is the First Step?

If a friend or family has been in an accident while driving your car, contacting an experienced Michigan auto accident attorney can help you to determine your rights and pursue your case to ensure you get your payment. The attorneys at the Clark Law Office may be able to help you. Contact our office or visit our website to learn more about the next steps. Michigan law regarding vehicle accidents and insurance is a complicated area that can be made clearer by a trained attorney.

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Matthew Clark

Content checked by Matthew Clark, personal injury attorney with The Clark Law Office. Matthew is the owner of The Clark Law Office and represents injury victims all over the State of Michigan. He has collected multiple million dollar verdicts and settlements for victims of auto accidents, dog bites, slip and fall, and medical malpractice. The main office is in Okemos, MI but you can also find us in Lansing and Eaton Rapids.