Most of the time, your car insurance is fairly comprehensive, even if your visiting mother-in-law is driving your car while you’re stuck at work for the day. There are a few times, however, where car insurance policies, as normally written, just don’t cover you. Here are three.
- Car Accidents Involving Pets: Pets are considered personal property, so if your dog or cat is in the car with you, and you cause an accident that results in injury to the animal, its medical expenses may be excluded from your coverage. Some insurers now offer special riders for ride-along pets, but this is a new product, and far from standard in the industry. On the other hand, if you’re in an accident and it’s not your fault, you could make a third-party claim to recoup veterinary expenses or, if the worst should happen and your pet is killed, the market value of the animal. Best bet: leave Fifi and Fido at home, unless you have a good reason for bringing them along.
- Accidents Involving Excluded Drivers: There are times that a specific family member is intentionally excluded from your auto insurance policy – if they have a DUI conviction, for example. This is a valid personal choice, and can save money on a day-to-day basis, but if an excluded driver uses your car and gets into an accident it’s not the insurance company who will be liabile for the damages, but you.. There are no exceptions to this rule – even if your unlicensed teenaged son is just moving the car out of the driveway. Best bet: all drivers in your household should either be on your policy, or forbidden access to the car.
- Accidents When a Friend Borrows Your Car: If your best friend borrows your car to go buy ice during a party, or your mother-in-law goes shopping while she’s visiting from out of town, your car insurance policy allows this under the ‘occasional driver’ clause. However, if you are traveling a lot, and your friend is house-sitting and using your car, and gets in an accident, it may not be covered. Generally, anyone who doesn’t live in your household but drives your car with any regularity should be listed on your insurance policy. Best bet: If you have a long-term house-sitter who uses your car, or a friend who is borrowing your second car, add them to your insurance, or buy them a bus pass.
We all want to be nice friends and good neighbors, as well as responsible pet owners, but sometimes friendship and cars or pets and cars are best left separate.