In the state of Illinois, the car insurance you have in place typically follows the car. This means that the required coverage of bodily injury liability, property damage liability, and uninsured motorist protection will all cover your car, whether or not you’re driving it. If you have any optional coverage added, it will also cover your vehicle.
Perhaps a friend or family member who isn’t on your insurance policy has asked to borrow your car. Maybe their vehicle is in the shop, or maybe they usually get where they’re going by way of public transportation. Regardless, here’s what to know in the event someone gets into a car accident while they are driving your vehicle.
What Happens If the Person You Loaned the Car to Is At Fault
While most situations will result in your car being returned to you unscathed, there is always the chance your friend or family member could crash your vehicle. If they are at fault, your vehicle’s insurance policy will cover the damages.
However, if the damage they caused exceeds the limits of your coverage, their liability policy can be used as secondary coverage. For PIP or MedPay, their own coverage follows them in any vehicle. Your collision and comprehensive insurance will pay for the property damages.
In the event that the person who borrowed your car was not responsible for the accident, the at-fault driver will be the one to cover damages through their insurance.
What to Know About Car-Sharing Apps
It’s more common now to use car-sharing apps. These apps allow you to grant others use of your vehicle. While this may seem economical, you must keep in mind that if you plan to participate in programs like these, your auto insurance provider will not cover any related accidents.
However, you’re not completely left in the lurch as most of these types of car-sharing apps cover you through their own policies. These policies only provide coverage to a certain amount, so it’s wise to understand what is and isn’t covered before you enroll.
Plan On Increased Insurance Rates
Insurance premiums are calculated based on a policyholder’s overall level of risk. If you let someone drive your vehicle, it’s likely your insurance rates will go up, particularly if that driver was found at fault for a crash.
It goes without saying that you should never lend your vehicle to anyone you don’t know or trust well — even someone in your inner circle could get into an accident in your car. It may not be their fault, but there is always that risk. If the accident is their fault, you will need to contact your insurance company. In essence, the driver you loan your car to is also borrowing your insurance.
Auto accidents are always unpredictable and can result in serious injuries. If you find yourself in this situation, it is imperative that you discuss it with an attorney to find out about your legal options and what rights you may have to receive compensation.
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