toedtoes wrote:
spud1957 wrote:
I asked this specific question to my agent about letting someone not living in my household drive my vehicle. She said in the event the driver CAUSES an accident, I have complete coverage BUT the fault of the accident will be marked against me (6 years) if/and any related rate increases would be against me.
These would be Canadian insurance regulations.
S
This is where it gets tricky. Depending on who reports the accident and to whose insurance company, the marks (and rate increase) could hit either or both (driver and/or vehicle owner). With my insurance, if a friend drives my vehicle, is in an accident, and I report it to my insurance, they will pay out and I will see the effects of that claim. They likely will go after the friend's insurance to get reimbursed (in which case, the friend will see the effects of that claim also). If I am driving a friend's vehicle and am in an accident, my insurance will pay out. They will likely not go after the vehicle owner's insurance. Only I will see the effects of the claim.
My understanding is that insurance follows the car. No matter who is driving the car or who is at fault, the insurance follows the car. If a friend is borrowing your car and is in an accident and it's the other driver's fault, the other driver's insurance will fix your car and the 'friend's' insurance will not be of any importance.
If the accident is the 'friend's' fault who is driving your car, then your car insurance will pay, not your friends. I just can't think of a situation where the 'friend's insurance will be involved when his/her car is not involved.
MM.
