Car owners often think about what will happen if a friend crashes their car. Will their car insurance cover the accident? Will they need to pay a penalty? What if they become ineligible to claim any amount from the insurance?
We often lend our car to family and friends. However, deep down, we stay anxious about the well-being of our vehicle and worry that it is returned safely.
A common question that many car owners raise is whether they would be able to claim insurance in case their friend crashes the car.
Here is the Answer-
There is nothing to worry about when allowing a friend or relative to drive your vehicle. Your vehicle stays protected under the terms of your insurance policy until and unless the name of the prohibited person is specifically mentioned on the policy document.
However, there are a few essential factors that affect the terms of your insurance policy. Be it a third-party cover, or a comprehensive insurance policy, there are certain guidelines that a driver must meet in the event of a crash.
1. The driver must be above the permissible driving age limit of 18 years.
2. The driver must have a valid driving licence. You will be considered ineligible for filing a claim if the driving licence of the driver is suspended or cancelled at the time of the accident.
3. You will not get the benefits of your car insurance if the person is driving under the influence of alcohol or drugs at the time of the accident.
What will be Covered under the Car Insurance Policy?
In case, your car meets with a small incident that involves minor damages, you are eligible to get the coverage as per the agreed terms of your insurance policy. However, the driver would still need to meet all the legal terms.
The second scenario is if your friend ends up causing a lot of damage to property and human life in the accident. In this case, your insurance policy is only liable to cover damage to property caused due to the accident and will not cover any third-party human injuries. Your insurance cover only pays for the treatment of the driver and fellow passengers, and not for the travellers in the other car.
Hence, if your friend meets an accident while driving your car, it would solely depend on the terms of your insurance policy to decide the amount of claim being disbursed.
It is, therefore, always advisable to lend your vehicle to a person who is above 18 years of age, medically fit, owns a valid driving licence and is well aware of the terms and conditions of your car insurance policy.