Does my car insurance cover damage caused by a family member who is not listed on a policy?

If a family member was driving your car and got into an accident, you may wonder: “Does my car insurance cover damage caused by a family member not listed on the policy?”

In addition, you may be worried that you might have to pick up the entire bill instead of just the car insurance deductible. We understand your concerns and have answered your questions below.

Car Insurance Coverage for Damage Caused by a Family Member

In most cases, your car insurance coverage will extend to other drivers who are not listed on your policy if they only drive your vehicle occasionally and not regularly.

This cover should provide protection even if the family member does not live in your household. But, of course, you must have permitted them to drive the vehicle in the first place.

Permissive Use and Family Members

A car insurance policy will only provide coverage to a driver behind the wheel of your car if you have given express permission for them to do so. If so, this type of policy will typically extend the full coverage provided by the policy, although you should always read the small print.

Check with some of the best comprehensive coverage car insurance companies to see if they may have a sentence that limits the amount of protection they provide to borrowed cars.

Be careful if you permit the other driver when they want to use the vehicle to perform some commercial or paid activities. Your insurance may not provide adequate protection in a case like this. They may need to consider commercial car insurance coverage to get full protection. (For more information, read our “Does Car Insurance cover me if I borrow a car?“).

Car Insurance For Family Members Not Listed on a Policy

Most insurance companies will expect you to add the names of other drivers in your household to your policy.

This is because the company anticipates that these people may get behind the wheel of your vehicle occasionally and believe that you should include their names in your policy. So, if a family member lives in the same house as you, ensure you add them.

Car Insurance For Family Members Outside of the Household

Adding an unrelated driver to your policy is often complicated if they don’t live with you. However, many companies will allow you to add family members to your policy, even if they don’t live under the same roof. You should add these individuals to your policy if they drive your car regularly.

Comprehensive Insurance and Coverage for Family Members

Usually, your car insurance coverage will extend to a driver that is not listed on the policy, so long as you have permitted them and they only drive the insured vehicle occasionally.

The policy should provide them with the same level of coverage as it does to you, including comprehensive coverage in this case. So, if they got into an accident, the insurance company would typically pay for repairs to your vehicle damage as well.

Teenagers and Car Insurance Accident Coverage

It’s not unusual for parents to allow a teenage student to take their vehicle to college, but you should notify your insurance company if this is the case. This may lead to changes to your policy if the college is in another city.

Insurance rates are often based on the vehicle’s location being driven the most. You may want to review the best auto insurance for young adults to get the best insurance policy.

Case Studies: Car Insurance Coverage for Damage Caused by a Family Member

Case Study 1: Extended Coverage for Family Members

Sarah’s brother, who was not listed on her car insurance policy, borrowed her car and got into an accident. Fortunately, Sarah’s insurance company automatically extends coverage to family members, even if they are not listed on the policy.

As a result, the damages caused by her brother’s accident were covered by her insurance, saving Sarah from having to pay for the repairs herself. This case demonstrates the benefit of having car insurance policies that extend coverage to family members.

Case Study 2: Importance of Adding Family Members to the Policy

John’s son recently obtained his driver’s license and occasionally uses John’s car. Realizing the importance of adequate coverage, John added his son to his car insurance policy. One day, while driving John’s car, his son was involved in an accident.

Thanks to the inclusion of his son on the policy, John’s insurance covered the damages caused by the accident, ensuring that he did not have to bear the full financial burden. This case emphasizes the significance of adding family members to the car insurance policy to ensure proper coverage.

Case Study 3: Permissive Use and Coverage Extension

Lisa’s cousin, who lived in a different household, asked to borrow her car for a weekend trip. Lisa permitted her cousin to use the car, knowing that her car insurance policy extends coverage to permissive users. Unfortunately, during the trip, her cousin was involved in a collision.

Thankfully, Lisa’s insurance company covered the damages caused by the accident, honoring the permissive use provision of her policy. This case highlights the importance of understanding the coverage provided to family members and other permissive users.

Car Insurance Coverage for Damage Caused by a Family Member: The Bottom Line

In most cases, your car insurance will cover this damage if you have given the family member permission to drive. If they live in the same house as you, you should add them to your policy. Usually, the company will provide them with the same level of coverage as it does for you.