As a car owner, you might be aware that car insurance is a mandatory requirement. Not only does it help provide legal protection, but also financial coverage, for damages to your vehicle. Thus, it is an absolutely critical component to ensure as part of your ownership experience.
A car insurance policy
, based on its coverage, protects you, your car, and also shields you against third-party liabilities. Your insurance policy document mentions the specifics in detail about what is included and what is excluded from its scope. But a common question that comes to the mind of many car owners is: what if the car is damaged when someone else is driving the car? Does the insurance policy offer protection? If you were looking for an answer to this question, you have come to the right place. This article discusses how a car insurance policy safeguards in situations when you are not at the wheel.
Who all are covered in a 4-wheeler insurance policy’s scope?
It can often be confusing to know who is covered in the insurance coverage since car insurance plans and their terms differ across insurance companies. However, as a general rule of thumb, all drivers holding a valid driver’s license, unless specifically excluded are covered by the insurer. Such category of individuals that are excluded is generally mentioned in the policy document limiting the policy’s coverage.
Considering the above coverage, you are free to lend your car to your family members as well as your friends. This is known as permissive use and it implies the usage of your car with your permission. Thus, all drivers using your car with your permission are covered under the insurance policy’s scope by way of permissive use.
*Standard T&C Apply
What are the conditions based on which the coverage is offered?
Whether it is a comprehensive plan or a third party car insurance
policy, the coverage for damages by your friend is subject to the following:
- The driver at such time must have a valid driving license and it should not be cancelled or suspended.
- Such a person must not be driving under the influence of intoxicating substances like alcohol, drugs, etc.
- If specified, such a person must be within the age group as specified by your insurance policy.
*Standard T&C Apply
How does your insurance policy protect in the case of a crash by your friend?
Generally, when you are driving your car, the insurance policy covers the damages for third-party as well as injuries, based on the coverage of your policy. However, the same in the case of your friend depends on the severity of the accident.
If it is a minor accident requiring minor repairs for your car, the insurance company, subject to the above conditions being met, will cover the cost of repairs. In addition, such a comprehensive policy will cover the driver at that time and the damages to your car.
But in case of an accident resulting in severe injury to a third person, including damages, the insurance policy will only cover for the property damage caused by your vehicle and not for the injuries to such a third person. The at-fault driver coverage is liable to include the cost of injuries to the driver and passengers in the car.
Thus, if your friend crashes your car, the insurer may provide compensation for the car insurance claim
based on its terms. In some cases, you might end up bearing the entire cost of such repairs or hold your friend liable. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.