If My Friend Wrecks My Car Will My Insurance Policy Cover It?
Reader question:
What happens when a friend takes my car out and wrecks it? Will my car insurance claim be denied?
Max in Fresno California
Thank you for your question, Max.
It really depends on the circumstances of his borrowing the car and wrecking it. These days, car insurance policies are very extended. For example, even if their names are not on your California car insurance policy, other family members in your house will be covered if they drive your car. Another group of people that will be covered under your policy is pretty much anyone to whom you give permission to drive it, or has a decent reason to believe that you would have given them permission.
This can be kind of troubling sometimes. For example, when you didn’t give someone permission then at times it is very hard to prove that this is the case, especially if they are a good friend or relative. I would never let my brother drive my car, but if he did somehow and got into a car accident, then my car insurance company would consider it to have been consented to. This means that his at fault crash would affect my auto insurance premium in the future. If they find that I did not give my consent, or wouldn’t have if asked, then while the damages to the vehicle will be covered, the driver will not be and my future premiums will not be affected.
So, yes, if your friend takes your car out for a spin and gets into an accident, then your car insurance policy will cover their injuries as well as the damage to your car. You still need to be the one to file a claim, though, and pay your deductibles. All of the responsibility for that sort of thing depends on you, since they have not signed your policy and everything is required from you.
Now, if your friend wrecks your car, then your own insurance policy will be the first to kick in. However, if they have their own policy, then once your own insurance coverage runs out, it will kick in as well.
Cheers,
Fashun Guadarrama.
California Auto Insurance Law And Diminished Value
One particular issue has been bugging California auto insurance law for awhile, and that is the right of the policy holder to receive diminished value payments for their vehicle after an accident. Along with such legal issues as credit insurance scoring (which many say is effectively discriminatory against minorities and low income people) and zip code scoring (same as the above), it holds a somewhat shaky ground in California , but it does hold ground.
- What is diminished value?
When you get into a car accident, California law will state that your car insurance must cover the damages of your vehicle if you meet the required conditions and have the right coverage. So, after your car has been fixed, perhaps you will decide to put your car up for sale or trade it in. One problem that you will face, though, is that when you put your once repaired vehicle up for sale, it will not sale for the value that it should.
This is not because of the regular depreciation. Let’s say that you’ve checked Kelley’s Blue Book and according to it and other calculations for the actual value of your car, it should sell for around ten thousand dollars. But you find that no one wants to take it for more than seven thousand. Why is that?
It’s because, when you repair your car, the value of it goes down because it is not so much in its original condition. The value drops even more when the car in question has been repaired with aftermarket parts.
- Can I make a claim for that?
According to California auto insurance law, no, you can’t. Thirty six states, in fact, have put language in their car insurance policies under the exclusions so that diminished value payments do not have to be made. According to a spokesman for State Farm, the value of a vehicle does not really decrease if the repairs are done by a mechanic with enough skill to return the car to its previous condition.
It remains to be seen whether diminished value exclusion language will be passed in every state, and whether or not the next step will be to file claims complaining about the person who apparently did not repair the vehicle as well.
How to Get The Best Auto Insurance Rate
Maybe all that I’ve said about researching the best auto insurance online and buying it there as well hasn’t gotten through to you. Or perhaps you’re just more interested in the face to face kind of thing. If this is the case, then when you go to buy the best auto insurance, you need to keep in mind what not to forget.
- Even if you go alone without the other named people on your policy, you will still need to have their driver’s license numbers with you so that they can be added to the policy.
- You will also need to bring your vehicle registration number (VIN) for any car that you will get on your auto insurance policy. On all the cars that I’ve had have the VIN located somewhere on the door, but I’m not sure if this is universal. If you don’t know, ask.
- Gather any necessary info about available car insurance policies so that you can ensure that you purchase the best auto insurance.
- Ask about the broker’s fee. If there is no fee, don’t worry. If there is, decide it beforehand.
- Know how you will pay your premium. You might want to pay it all at once, make a large down payment and continue in installments, or simply pay in installments. Make sure your car insurance company offers these options.
- If you don’t understand something, don’t sign it. If it’s blank, don’t sign it. Know what you are signing.
- Take notes if you can’t remember, but make sure you have a record of how the policy buying goes. Also write down the name of the insurance agent you are dealing with.
- Always give correct information, and all the information required.
- Make sure you know the full name of your car insurance company.
- Always keep the documents you sign and make sure that you have a copy of everything for your records.
Once you have your policy, make sure that you read through it thoroughly. Never walk out of your insurance office if you don’t understand your policy. Most of the time your car insurance agent will help you out with this, or you can read some other blog posts on the issue.
Combine Home and Car Insurance Policies to Get a Lower Rate
When I lived in California for about half a year, one thing that I realized when searching for a good car insurance company was that many of the companies there weren’t dedicated to car insurance alone, but also offered things such as renter’s insurance, homeowner’s insurance, and life insurance. At the time I already had a life insurance policy back home, but since I intended on getting car insurance there and also was renting a short term lease apartment, I decided to get renter’s insurance as well.
When I combined these two policies, I received a ten percent savings on both of them, discount that I would not have received if I had gotten my car insurance from one company and my renter’s insurance from another. This is called the combined insurance discount, and it’s why it’s a good reason to get all of your insurance policies with one company. Not only is it cheaper, but it makes everything simpler as well. If you need to file a claim for your insurance as well as your homeowner’s insurance, you only have to go to one company. And you can pay all of your bills together.
In a similar vein, you can get cheaper insurance rates, although not outright discounts, when you have more than one person or vehicle on your policy. This is why most married couples see their rates go down after the wedding day, or at least it is part of the reason. If you add other members of your household to your policy, it dilutes the risk and you will see your car insurance rates drop. I found this out when I got on a policy with my roommate, but it is true for everyone.
As a final note, one thing that many people do not know about is that a lot of companies who deal in insurance offer renewal discounts. This is not necessarily a discount only for renewing your policy with them, but is usually something that you get after you have been with the same company for several years. If you find a good company that will consistently offer you the best car insurance rates, then stay with them and ask about the renewal discount. However, don’t stay with a company just for this discount when you can get better rates elsewhere.
California Car Insurance Company – Any Recommendations?
You may be thinking, hey, she says it’s easy, but it really doesn’t sound like it. How can I get my policy from the best CA car insurance company out there and not have to put myself out so much. Well, you can do it. I don’t advise it, but a lot of people do. Still, before you go this route, at least try to do it on your own. It’s cheaper, faster, and at least you know the results through your own work and you can trust them more.
However, if you just can’t or don’t want to, get a CA car insurance company agent.
A lot of companies don’t use agents anymore. People often buy their car insurance policies directly from the CA car insurance company, without the use of the middle man. Even so, agents are still working in full force, even in these days. There are two kinds:
- Captive car insurance agent.
This type of agent might not be the best in helping you find your perfect CA car insurance company, because they swear by only one car insurance company. If you already know where you want to go, then you can absolutely go through one of these agents.
- Independent car insurance agent.
These agents are more up your alley. They count more than one CA car insurance company as clients, and as such they can give you a more frank look at which car insurance company will work the best for you. This is the kind of agent you’re probably looking for, at least with regards to picking your CA car insurance company.
The best part about having an agent looking for a CA car insurance company for you is that the agent is going to know YOU, personally and specifically. They know exactly what your needs are and what details about you can work in favor of a cheap car insurance premium, a few things that might be hard to fit into a google search.
Remember that when you get your car insurance agent, who also go by the title of broker, you should make sure that you have decided on the fee before you sign anything. They may offer you something straight out, but most of the time it can be negotiated.
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