You give permission to a friend or a family member to drive your vehicle. Your friend/family member is involved in an accident while driving your vehicle and she/he is at fault.

Who’s insurance will be primary for this accident? The driver’s own auto policy or your vehicle’s insurance?

Many people feel that driver’s own auto insurance should cover the accident simply because they were the ones driving. Wrong!

Your vehicle’s insurance will be primary to pay for the damages and injuries caused to the other parties. Depending how the policy is written, it might have surplus coverage if the driver’s own policy has a higher limit. 

For example:

 Suppose you have the minimum California limits which is 15/30/5. The driver’s policy have 25/50/10. Their insurance might pay 10/20/5 if your insurance is exhausted then their liability limits might pay the difference, but don’t hold your breathe.

What is 15/30/5? These are the liability limits insurance companies pay if you are at fault for an accident. 

If they don’t have higher limits, it’s very rare that their own policy would pay anything. It varies how both policies are written.

15 is $15,000 is the limit they would pay per person for their injuries.

30 is $30,000 is the limit they would pay per accident for everyone’s injuries.

5 is $5,000 is the limit they would pay for property damage caused by your vehicle.

Now, this is the scary part. If your limits get exhausted and there is no more insurance available, the other parties can come after the owner of the vehicle and the driver.
Be careful who drives your vehicle, you can be liable even if your not driving. Also, your insurance premium might be affected once your renewal is generated.

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