Auto Insurance Claims: auto related liability, legal clause, unlicensed driver

Question
If the owner of a car is knowingly allowing an unlicensed driver to drive their car,
with the vehicle insured by either the owner's insurance, or insurance that the
uninsured driver has obtained, what sorts of liabilities does the car owner have if
the unlicensed driver gets into an accident?

Answer
Hi Steve,
The majority (if not all) (I haven't read them all since there are over 400 companies doing business as auto insurers) insurance policies have a legal clause that states should you knowingly allow an unlicensed driver to driver your car, there is no coverage for that person as a driver and no coverage for you as the vehicle owner.

Many policies have an exception to this clause if the situation arose from a true medical emergency.

You, as the owner would be co-responsible for all damage and injuries caused if the unlicensed party had an accident.  A portion of the financial loss would fall on the driver, but if he/she had no assets, you could wind up being 100% financially responsible.

The portion of your question asking about how it would be handled if ithe unlicensed, uninsured person had obtained insurance is not clear.

In that portion of your question, I am assuming you mean what happens if he/she buys insurance after the accident.  Under such conditions there would be no coverage because a policy must be in effect at the time of the accident for any coverage to apply.

An unlicensed person could not have purchased a policy.

If I have misunderstood your question, please send me a re-worded
follow up.

I hope that you find this information to be of help.  Your feedback by rating my response will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area