You can arrange to have your auto insurance policy cover visiting relatives if you wish. If you want to lend your car to a visitor, contact your auto insurance provider to have any licensed drivers added to your policy.
Keep in mind that when you decide to lend your car to another driver, you are also allowing that person to use your car insurance coverage as well. If the person who borrowed your car is involved in an accident, your auto insurance company will pay for the damages. The accident will be noted on the record for your vehicle, since the insurance is connected to it instead of the driver.
After the accident, your auto insurance coverage costs will likely go up. The accident will be included in your insurance record for up to five years after the incident. Unless you have complete confidence in the driving ability of your relative, it’s not a good idea to allow him or her to drive your vehicle.
Non-owner Auto Insurance
An alternative to adding a relative to your existing auto insurance policy is to have him or her buy non-owners auto insurance coverage. A person who is visiting from another country would arrange this coverage before he or she leaves home to be covered as soon as he or she arrives in the country.
In-country relatives who will be visiting you would also arrange for this insurance before starting their visit. If an accident occurs, the non-owner policy will pay for bodily injury and property damage claims as a result of the accident. Your auto insurance may come into play as a secondary policy if the non-owner’s auto insurance policy limit is not high enough to cover the damages caused.
Shop Around for Non-owner Auto Insurance Coverage
The cost of non-owner auto insurance coverage will vary, depending on the company involved. Each one determines how much risk it is prepared to assume on behalf of its policyholders. A person who is looking for coverage who takes the time to get quotes from several companies will see a range of prices for the same type and level of protection.
Non-owner auto insurance which is being issued for a relatively short time will likely be more expensive than buying a policy for a standard term of six or 12 months. If your relative currently has auto insurance coverage in place, his or her existing company may offer temporary auto insurance coverage. Asking for a quote from this provider is a good place to start.
Getting quotes from other auto insurance companies before making a decision about where to buy temporary coverage is a good idea. Your visitor should make a point of starting to look for coverage well in advance of the date of the trip so that he or she is not stuck making a decision about this type of coverage in a hurry. Buying auto insurance coverage is not something that a driver should do in a hurry.