Most car indebtedness indemnity policies cover privileged insureds ( e.g. nonmigratory proportional, spouse and named insured ) if driving a nonowned drive vehicle. It is called Nonownership Or “ Drive other Cars ” Coverage .here, you will see several examples of when you are covered for using person else ’ randomness car .
Example #1 (Named Insured driving a nonowned car)
Justin owns a car that State Farm insures. He drives a ally ’ mho car and hits another car that Mike is driving. Justin is cited for careless drive. Mike has neck injury as a consequence of the accident and wants to make a claim against Justin.
Justin ’ mho car policy policy with State Farm should cover Justin astir to the limits of bodily injury ( B.I. ) liability coverage. Let ’ s assume that Justin has $ 10,000/ $ 20,000 of BI on the policy. In this example, State Farm would pay Mike up to $ 10,000 for Mike ’ s injury .
In ordain for State Farm to pay Mike the $ 10,000 policy limits, Mike ’ south damages ( out-of-pocket medical bills, lost wages and pain and suffer ) need to be worth $ 10,000 .
Example #2 (Spouse driving a nonowned car)
Justin owns a car. He has car policy through State Farm. Justin is married to Monica. Monica drives a friend ’ second car and hits another car driven by Mike. Monica is cited for careless driving. Mike has neck injury as a resultant role of the accident and wants to make a claim against Monica .
Justin ’ south car indemnity policy with State Farm should cover Monica up to the limits of bodily injury ( B.I. ) liability limits on the policy. This is because Monica is married to Justin and Monica is driving a nonowned centrifugal fomite. so if Justin has $ 10,000 of BI on the policy, State Farm would pay Mike improving to $ 10,000 for Mike ’ s injury. Mike would have to prove that his damages ( out-of-pocket aesculapian bills, lost wages and pain and miserable ) are worth $ 10,000 in ordering for State Farm to pay Mike the $ 10,000 .
Example #3 (Resident relative driving a nonowned car)
Justin owns a car and has car indemnity through Geico. Justin lives with Ryan, who is Justin ’ s buddy. therefore, they are “ house physician relatives. ” Ryan drives a acquaintance ’ randomness car and hits another car driven by Mike. Ryan is cited for heedless drive. Mike has neck injury as a resultant role of the accident and wants to make a claim against Ryan .
Justin ’ south car policy policy with Geico should cover Ryan up to the limits of bodily injury ( B.I. ) liability limits on the policy. This is because Ryan is a nonmigratory proportional of Justin and Ryan is driving a nonowned vehicle. It is a nonowned vehicle because it is owned by Ryan ’ s friend. Some smaller insurance carriers in Miami have exclusions in the policy that will not provide coverage under the resident proportional ’ second policy .
so if Justin has $ 10,000 of BI on the policy, Geico would pay Mike up to $ 10,000 for Mike ’ mho injury. Mike would have to prove that his damages ( out-of-pocket medical bills, lost wages and pain and suffer ) are worth $ 10,000 in order for Geico to pay Mike the $ 10,000 .
– Nonownership or “ Drive other Cars ” Coverage merely applies when one of the insureds is driving a vehicle in which he or she has no legal or equitable interest. If one of the insureds has a legal or equitable sake, there is no coverage .
In addition, if Ryan owned a car, his cable car policy would besides cover him for bodily injury to Mike. This would be in addition to Justin ’ s BI liability coverage .
Example #4 (Insured has legal or equitable interest – No coverage)
Justin owns several cars. One of the cars that he owns in not insured. All the other cars that he owns are insured through Imperial Fire & Casualty Insurance Company. Justin drives the cable car that is not insured and hits another car driven by Mike. Justin is cited for failure to yield the right of direction. Mike has neck injury as a result of the accident and wants to make a claim against Justin .
Justin ’ mho car policy policy with Imperial Fire & Casualty Insurance Company will not cover Justin for Mike ’ sulfur damages ( out-of-pocket aesculapian bills, lost wages and pain and suffer ) because Justin owned the car that he was driving but it was not listed on Justin ’ s automobile indebtedness policy policy .
– The purpose of the “ drive early cars ” function of an automobile liability policy is to cover episodic or attendant use of early cars without a raise in the premium. But, the policy policy is not designed to cover the insured against personal liability if he or she uses an automobile that the insured use frequently or has the opportunity to use much but it is not declared as an cover vehicle .
For model, I ’ ve hear that Liberty Mutual considers using person else ’ south car more than two times a month regular use. On the early hand, USAA has told me that using person else ’ second car up to 90 days is not considered regular function even if the car is kept at an address that the indemnity company does not know about. As you can see, some insurance companies are more generous than others .
The determination of the limitation is to stop a situation in which the members of a syndicate or family have two or more automobiles that are or may be used interchangeably, but each family member insures only one car under his or her own policy. Check out State Farm Mutual Automobile Insurance Co. v. Holland, 296 So.2d 100 ( Fla. 1st DCA 1974 ) ( That case involved a car registered in guarantee ’ second mention and owned by insured ’ s son who lived in insured ’ randomness house, and the car was available for insured ’ randomness frequent or regular use, and thus was not covered as a “ nonowned automobile ” under insured ’ randomness policy ).
In Example # 5 below, I use some of the facts of the State Farm v. Holland shell mentioned above :
Example #5 (Insured driving car registered in resident relative’s name; and owned by resident relative residing in the same household)
Deborah was injured in an accident in Jacksonville – or any city in Florida – while riding as a node passenger in a Cadillac car being driven by Ian. The Cadillac is owned by his brother, James. The Cadillac was registered in the list of his father, Joseph. On the day of the crash, Ian and James had exchanged cars. James loaned his Cadillac to Ian and James borrowed Ian ’ s Pinto in exchange .
Joseph originally owned the Cadillac but gave it to James many months before the shipwreck. James had covered the car with BI limits of $ 10,000/ $ 20,000. Joseph owned a Chevrolet with $ 100,000/ $ 300,000 liability limits. State Farm provided the coverage on both the Cadillac and the Chevrolet .
The Cadillac is not considered a “ non-owned ” car within the policy definition of that term for two reasons : The Cadillac was registered in Joseph ’ s appoint, the named insured in the Chevrolet policy ; and second, the Cadillac was owned by James who was a relative reside in the same family. It was surely available for his frequent or regular consumption. therefore, Deborah is merely entitled to the $ 10,000 available under the BI limits of the Cadillac .
What Happens if You’re Driving a Friend’s Car and Another Car Causes Your Accident?
Your acquaintance ’ s car insurance should cover you. In a moment, I will get into specifics. additionally, you can make a claim for pain, suffer, medical bills and lost wages against the other cable car ’ s indemnity company .
Some people do not want to make a claim with their supporter ’ south ( the cable car owner ) policy company. They may think that making a claim with their ally ’ south car policy may raise their rates. Often times, this is not dependable. furthermore, not making a claim with your friend ’ sulfur indemnity is a bad decisiveness for many reasons .
Example of What Happens if You’re Driving a Friend’s Car and Another Car Causes Your Accident
Mike is driving his acquaintance ’ second ( Julie ) car. Assume that Mike does not own a car or live with a relative who owns a car. An 18 wheel horse truck loses control and crashes into Mike ’ sulfur car in West Palm Beach, Florida. As a leave of the accident, paramedics take microphone to the hospital. Doctors diagnose Mike with a concussion, and a back and neck strain .
Mike should make a title with Julie ’ s indemnity. This manner, Julie ’ second cable car indemnity ship’s company ( Progressive ) will give Mike personal injury protection ( PIP ) benefits .
basically, Progressive would pay the hospital up to $ 10,000 for Mike ’ s medical bills. That is a big benefit. Since PIP pays the hospital bills, Mike ’ s out of pocket aesculapian bills will be lower. When Mike settles his personal injury claim against the hand truck ’ second policy company, Mike will get more money in his pouch .
There is another reason that Mike should make a claim with Julie ’ mho indemnity. Julie ’ s indemnity policy will require that he notifies it concisely after an accident. If he doesn ’ t notify the indemnity company of the accident, they can deny coverage for failure to report the claim in time. I ’ ve seen out of state indemnity policies have inadequate report periods ( evening if the accident happens in Florida. )
This can cost Mike valuable PIP and uninsured motorist insurance benefits. For model, let ’ s say that the the hand truck ’ sulfur policy company goes bankrupt. Maybe it is a risk retention group and is not subject to Florida ’ s Insurance Guarantee Fund. If this “ insurance company ” goes fail, Mike may not anyone to pay his claim .
Many Other Situations Involve Driving a Car That You Don’t Own
There are many more cases that involve the nonownership or “ Drive other Cars ” Coverage that I did not discuss here. I will hopefully add to this article in the future .
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double credit : Marvin Kuo