“Hey, can you lend me your car this evening?” Such a question can put car owners in a spot of bother. While some car owners might not think twice before lending their car’s keys, some might refuse upfront, give excuses, or get offended.
Usually, owners who have recently purchased a car might be a bit wary of lending their precious four-wheelers but those with an old car might hand the keys without any worries.
Whatever be the case, one question that might trouble car owners is – how does a car insurance policy work when a friend crashes your car? Read ahead to know the answer to this question.
Car Insurance Basics
Before understanding the functioning of car insurance in a case where your friend damages your car while driving it, you must understand the type of car insurance policy you have.
There are two types of policies: Third-party Liability and a Comprehensive plan.
A basic third-party policy will not cover you if your friend damages your car but a Comprehensive plan will, as per the terms and conditions.
Usually, Comprehensive car insurance policies mention owner-driver in their coverage. The insurance company will consider your friend to be under the purview of insurance and settle the claim raised for own damage.
So, it is Possible?
Yes, your car insurance company will cover you in case your friend damages your car while driving it. This is possible because the insurance company will consider such damages under ‘collision coverage’ of a Comprehensive plan.
However, the friend driving the car has to meet certain requirements and shouldn’t violate certain terms and conditions.
- Must Read – Does Your Car Insurance Cover Everything?
Under Which Cases is Such a Situation Covered?
Listed below are some situations under which damages are covered by an insurance company:
- Your policy should have a valid Comprehensive plan
- The friend should be above 18 years of age
- The friend should have a valid driving license
- The claim should be substantiated with necessary evidence/documentation
Under Which Cases is Such a Situation Not Covered?
Listed below are some situations under which damages are not covered by an insurance company:
- Car was used for illegal purposes
- The friend was intoxicated at the time of accident
- Car was covered only under Third-party Liability policy
Precautionary Measures from Your Side
Nowadays, claim settlement is not a daunting task. Nevertheless, it requires time and energy from your side.
Therefore, even if the car is damaged while your friend was driving it, it is you who will have to raise a claim. It is you who will lose No Claim Bonus. It is you who has to deal with the insurance company and face the consequences of the accident.
While one cannot predict whether a friend might cause a car accident, one can certainly take the following precautionary measures:
- Ensure to purchase a Comprehensive car insurance plan
- Ensure the friend is authorized to drive
- Do not hand out the keys to someone whom you do not trust
- Do not hand over the keys to a person if the person has a history of rash driving or irresponsible behavior.
- Keep the car insurance policy updated
Car Insurance Online
Note that an inactive car insurance policy is not beneficial. You have to keep your car insurance policy active to ensure you can avail the benefits.
You can ensure that your policy is always active by renewing it on time. Thankfully, this can be easily done via car insurance online.
Make an informed choice while selecting an insurance plan and drive safe.