Table of Contents
- Does a standard New Jersey car insurance policy cover other drivers?
- When and how does a standard New Jersey car insurance policy cover other drivers?
- What will it cost me if my New Jersey car insurance doesn't fully cover other drivers?
Does a standard car insurance policy cover other drivers in New Jersey?
My aunt is staying with me for a week. I’d like to lend her my car to drive when she needs it, but what if she gets into an accident? Will my car insurance cover her? Does her car insurance play a role?
The answer is yes! You’ve probably heard the old saying that “insurance follows the car,” and that’s true. In addition to covering everyone in your household who is listed on your New Jersey auto insurance policy (your spouse, your children), you also have coverage for anyone who you lend your car to.
But there are some conditions.
When and how does a standard car insurance policy cover other drivers in New Jersey?
First, you need to give permission to the other driver in order for your car insurance to extend coverage. If someone staying in your home simply takes your car without your knowledge and then causes an accident, your very disrespectful guest shouldn’t expect your car insurance to cover him.
Your permission need not be formal. Verbal permission is sufficient in these situations.
Some policies will explicitly exclude other drivers and only cover the people in your household who are named drivers on the policy. In some cases, you can actually name on your policy specific individuals who do not have permission to drive you car and would not be covered.
Some inexpensive, bare-bones car insurance policies explicitly exclude any drivers other than those named on the policy as insured drivers. These policies would exclude coverage even for drivers to whom you give permission to drive your vehicle.
If my car insurance doesn’t cover the other driver, what will?
Like many situations with New Jersey car insurance, your policy might not cover everything even if you’ve given the other driver permission and all of the other circumstances are appropriate.
You’ll always have to pay any applicable deductible before your coverage kicks in. What’s more, if a claim exceeds the limits of your policy, the other driver’s policy would kick in and cover the remaining expenses. But your insurance on your car would always be the primary policy, covering the other driver up to its specified limits.
Article Reviewed by | Paul Martin