Do You Need Extra Insurance When Loaning Your Car to Visiting Family in California?
What if an act of kindness became the worst mistake you could possibly make?
Like all drivers in the state, you protect yourself with a good California auto insurance policy. It’s designed to give you peace of mind whenever you get behind the wheel. But have you ever wondered if those same protections extend to your family when they want to take your vehicle for a ride?
Your relatives may be interested in flying out and seeing everything the West Coast has to offer. However, do you know whether or not your existing policy will cover them in the event of an accident? Loaning your car to family in California causes major insurance questions; keep reading to discover the answers.
Understanding California’s Car Insurance Rules
Before you loan your vehicle to anyone, you need to understand a bit more about how your California auto insurance policy actually works. Normally, things are straightforward: In the event of an accident, the person who is at fault must pay the damages, and it will be covered by their liability coverage. Meanwhile, collision coverage will pay for repairs (up to the policy limit) regardless of whether you were at fault or not, and comprehensive coverage will protect your automobile when you aren’t behind the wheel (the biggest benefit when it comes to collision vs. comprehensive car insurance).
However, that leaves you asking a big question: “What about visiting family driving my car?” California has special rules when it comes to using someone else’s insurance. Below, you will learn more about how your policy does (and doesn’t) apply when you let a visiting relative behind the wheel.
How Insurance Applies When Someone Else Drives Your Car
Ever asked yourself, “Who is covered under my car insurance?” What most people don’t realize is that their policy is attached to the vehicle and not to the driver.
Therefore, you are generally liable if you loan your vehicle to someone and they end up getting into an accident. Even if they have their own coverage, your liability policy is typically the primary coverage, and the driver’s own insurance may apply as secondary coverage if damages exceed your limits.
This is assuming you are willingly letting them drive the vehicle, of course. To understand why this is important, you need to understand how permissive use in California works.
Understanding Permissive Use in California
Permissive use in California means that you can give other people permission to temporarily drive your vehicle. Therefore, you can generally loan your vehicle to visiting relatives, and they will often be covered by your policy. However, coverage will not apply to anyone who drives your car without permission.
In other words, as long as you are allowing someone to use your vehicle, your existing policy functions as permissive driver coverage in California. That means the answer to “who is covered under my car insurance” boils down to “whoever you give permission to,” provided the use is truly occasional and allowed under your insurer’s policy terms.
You do not have to purchase separate occasional driver coverage in California, and you do not necessarily need extra insurance when loaning vehicles unless required by your insurer’s permissive-use rules, liability limits, or the driver’s usage frequency.
Loaning Your Car to Visiting Family: What You Need to Know
The primary thing to know about car insurance for visiting family in California is that anyone who occasionally borrows your vehicle will generally be covered by your existing policy. This should cover most situations involving visiting family driving your automobile, subject to your insurer’s specific rules. However, if this is a family member who lives with you rather than a visiting relative, then you will need to add them to your policy.
So long as the person isn’t regularly using your car, any accidents they cause will be covered by California liability coverage when loaning the vehicle. If someone will be regularly using the vehicle, you should consider adding them to your policy. Insurance companies determine “regular use” based on their own guidelines, not a fixed legal definition, and failure to disclose a frequent driver may result in denied claims.
How Insurance Companies View Occasional vs. Frequent Drivers
When loaning your car to family in California, one insurance factor you must consider is how carriers view occasional drivers versus frequent drivers. Occasional drivers are the ones who just periodically need to borrow your vehicle, but frequent drivers are the ones who regularly need the car for the same purpose as defined by the insurer, which can vary by carrier.
For occasional drivers, existing coverage often protects visiting family in California who need to use your vehicle. Frequent drivers will usually need to be added to your policy, as non-owner insurance typically does not apply when a driver has regular access to a specific vehicle.
Adding a Visiting Family Member to Your Policy
It’s fairly easy to add family members to your policy by contacting the carrier. This usually isn’t necessary for visiting family because the occasional driver coverage in California protects them. If they live with or near you and regularly need the vehicle, though, you can add drivers to your policy in California simply by speaking to your carrier.
What if it’s a non-family member, like a babysitter who needs to regularly use your vehicle to pick your children up from school? In that case, they typically must be listed on your policy, since non-owner car insurance generally does not cover regular use of a specific vehicle.
What to Do If a Visiting Family Member Gets into an Accident
In California, liability when loaning vehicles falls to the person who owns the car. If a family member gets into an accident, they need to exchange policy information with the other driver, document what happened, and give all the information to you. You can then contact your carrier, and they will process the claim under your policy, while still determining fault based on the driver’s actions.
Protecting Yourself with the Right Coverage
You want to give both your car and your family the very best. And that means getting the best car insurance long before anyone flies out to the West Coast.
When loaning your car to family in California, good insurance makes all the difference. Remember, you can change your policy whenever you want. This gives you a chance to save both time and money, all while finally getting the customer service you deserve.
Loaning Your Car? Make Sure You’re Covered, Get an Accurate California Insurance Quote Today
Now you know that you don’t necessarily need extra insurance when loaning your car to visiting family in California. You also know when adding someone to your policy is necessary and the importance of both permissive use and non-owner coverage. But do you know where to find the carrier who is best suited for all your needs?
Here at Cost-U-Less, we specialize in providing the best service to hardworking drivers just like you. Ready to protect your vehicle while giving your family the protection they deserve? Call us at (800) 390-4071 or get a fast car insurance quote online. You can also find a Cost-U-Less office near you.
FAQs
Are There Exceptions to Permissive Use Coverage?
Permissive driver insurance in California has a few exceptions. It will not apply to unlicensed drivers or anyone who regularly uses the vehicle without being disclosed to the insurer. It is also unlikely to pay out if someone is using your vehicle for commercial purposes (like making deliveries or serving as a rideshare driver).
Does Loaning My Car Increase My Insurance Premiums?
Loaning your car out does not automatically increase premiums on its own. But you are liable for any accidents they cause while driving, which will certainly increase your monthly premiums.
Is a Visiting Family Member Covered If They Don’t Have a California Driver’s License?
For occasional use of your car, family members with any state driver’s license or even an international license are often covered, as long as they are legally licensed and your insurer allows it under the policy terms.
Typically, your coverage will not protect unlicensed drivers. And if you loan your vehicle to someone with no license, you may very well be sued for negligence.
