Because having auto insurance is mandatory to drive a vehicle, it is important to understand various aspects of auto insurance policies. When it comes to understanding auto insurance, one of the main points people need to be aware of is that the terms and conditions outlined in insurance policies can vary among insurance companies. For instance, it is important to understand what you are covered for in certain situations that require contacting your insurance provider. For example, many drivers do not know the liability terms and conditions regarding certain type of vehicle incidents such as if they should contact their insurance provider if a friend was driving their car and got into an accident.

When it comes to allowing friends to drive your vehicle, your insurance company has the right to deny payment for loss or damage caused to the vehicle in the event of an accident for the following circumstances:

1. The person driving the car is not listed on the policy and does not reside in the home.
2. The driver was under the influence of drugs or alcohol and could not properly control the car.
3. The driver has a criminal conviction relating to the use, care, or control of a vehicle. For instance, such convictions can include: driving while impaired, traffic violations such as failing to stop at a scene of the accident, driving the vehicle with a suspended driver’s license, refusing the breathalyzer, and causing injury to another in a car accident.

If you loan your car to a reckless driver or a driver who has a history of poor driving, and he or she causes an accident as a result of reckless driving, you will be liable for injuries and damage resulting from the accident. Thus, your insurance company will deny compensation. If the driver of the car does not live with you, you are covered if they get into a car accident while driving your car. However, if your friend is living with you, they have to be included in your policy to be able to drive the vehicle and remain covered. If your friend is a roommate and drives your car and is not included in the policy, you will not be covered. If you lie to the insurance company and are caught, you could be charged because it is insurance fraud.

Another point to consider is if you lend your car to a friend who does not have auto insurance and he or she is in a serious car accident that results in injury to another person, you could be sued by the injured party because you are the policy holder. This could be a financially devastating situation, especially if your insurance company will not pay out if you lose the case.

It is important to always inform your insurance company when there is a car accident, even if you are not the driver. As well, any type of car accident can cause an increase in your insurance premiums. One way to make sure you are protected is to contact a quality insurance provider such as Assurances Auto to clarify the terms and conditions in your policy. By doing so, you will be able to make the right decisions about who you will allow to drive your car and add the appropriate persons to your insurance policy. The basic point to remember is that your insurance should cover anyone you give permission to drive your car, has a valid driver’s license, and does not have a driving criminal record.

Author Bio: Magasinez-vous pour votre police Assurance auto Quebec? Repute pour son excellence