If someone else wrecks your car, you are probably asking the question, "What happens if someone else is driving my car and gets in an accident?"—because you want to know if your New York car insurance covers them. Yes, it does under most circumstances.
Our Long Island car accident lawyers have put together this comprehensive guide to help you understand how insurance coverage works and what steps to take if someone else driving your car is involved in an accident.
NY Car Insurance Follows the Car
In New York, your car insurance coverage applies to other drivers of your vehicle—following the car rather than the driver. This includes collision, uninsured motorist protection, comprehensive, personal injury protection (PIP), and property damage liability insurance.
What If Another Person Borrowed the Car That Hit Me?
In New York, if someone causes a collision while driving another person's car, there are several factors that are important to know.
The Car's Property Damage Liability Will Pay for Your Losses
If your crash was caused by someone in a borrowed car, the vehicle's property damage liability insurance should cover the damage to your vehicle. Additionally, the liability policy for the car should cover your other losses, including bodily injury.
New York Operates on a “No-Fault” Insurance System
As a driver in New York, you are required by law to carry not only property damage liability coverage but also personal injury protection (PIP) insurance. In a no-fault insurance system, injured parties typically file claims with the insurer that covered the vehicle they were in at the time.
This means you will file a no-fault application with your own coverage, or your vehicle's coverage, and not typically with the vehicle that caused the accident. However, if you were a pedestrian or bicyclist, you would file a no-fault application with the vehicle that struck you. If you were in a borrowed car at the time of the crash, your PIP or no-fault coverage would come from the car you were in.
Can PIP Insurance Cover Other Drivers?
Yes, PIP or no-fault coverage will pay up to $50,000 per person for medical expenses, lost wages, and more to the driver and any passengers who were injured, as well as to any injured pedestrians, regardless of who was the at-fault driver.
While you have PIP coverage through the vehicle you're in when an accident occurs, you can also access coverage from your own car insurance provider if it offers more extensive benefits than the collision coverage of the other vehicle involved. This applies even if you're the person driving a car that isn't your own vehicle. If you're a named insured on another car owner's insurance policy, you may also access coverage from that policy (including umbrella or excess coverage).
When Doesn't Your New York Car Insurance Cover Other Drivers?
There are situations where a vehicle's own insurance may not cover the accident or resulting damages with financial consequences. Examples of situations when the vehicle's insurance won't provide coverage include:
The Driver Was Not Given Permissive Use of the Vehicle
According to New York's Department of Financial Services, an auto liability insurance policy must cover:
- The policyholder (as the insured party)
- The policyholder's spouse or child (if they live in the same household)
- Anyone else permitted to drive the policyholder's car (with some exceptions)
If someone drove the car without permission, insurance won't cover collision damages. For example, a theft is a non-permissive use. Non-permissive use can be difficult to prove as the presumption is that the use was with permission.
Your Auto Insurance Policy Does Not Cover Permissive Use
Not all insurance policies cover permissive use. They might not cover it at all or only offer “step-down” policies with limited coverage. An insurance company may provide coverage for permissive use claims, but it will increase your deductible when you file a claim. Coverage for permissive use generally won't extend to rental cars.
Review your auto policy to find out what you are covered for and your policy limits before you let a family member or a friend drive your car.
You Explicitly Excluded the Driver from Your Policy
In New York, you cannot buy an auto insurance policy if you try to exclude a member of your household who is of driving age. Some states do allow this, particularly if the person in question has a poor driving record or a history of drunk driving. If motorists in these states name someone as excluded, their insurance will not cover claims involving the excluded drivers.
Does My Car Insurance Cover Me in Another Car?
In New York, your car insurance may provide coverage when driving someone else's vehicle, and your friend's insurance will also protect you in case of an accident. If you cause an accident and exceed your friend's car insurance policy coverage limits, your own policy will apply.
Does My Car Insurance Cover Me in a Rental Car?
Your existing policy may also protect you when you drive a rental vehicle.
Before buying optional insurance from a rental car company, review your existing policy to see if you're already covered. Knowing your coverage can help you find assistance quickly in case you have an accident while driving a rental vehicle.