Car Insurance – Who Is Insured

Knowing who is an insured on your car insurance policy is an important factor we all should know before lending someone a vehicle. Not knowing who is an insured can lead to uncovered accidents leading to legal, financial, and physical problems.

The following information is in regards to Liability coverage which covers bodily injury and/or property damage to others as a result of an accident that an insured becomes legally responsible for up to the policy coverage limits.

Although there are some exceptions and exclusions that we’ll cover later, in general most policies consider the following to be insured:

• The name insured and members of his or her family while using any car.
• Anyone using the insured’s car with the insured’s permission or the reasonable belief that he or she is entitled to do so.
• Other people or organizations to the extent that they share liability with an insured.
• Other persons or organizations for their liability arising out of an accident involving any auto or trailer used by the insured or a family member. (does not apply if the auto or trailer is owned by the person or organization in question)

To take a closer look at these groups, first, the named insured, his or her spouse or any family member is an insured for the ownership, maintenance or use of any auto or trailer.

Suppose the named insured’s 16-year-old son borrows a neighbor’s car and causes an accident. The son would be considered an insured for Liability coverage under the named insured’s Personal Auto policy.

Any person using the named insured’s covered auto with the insured’s permission or the reasonable belief that he or she is entitled to do so is also covered for Liability insurance. For instance, a neighbor would be insured under the policy if he or she had an accident while driving the named insured’s car, but would not be covered under the name insured’s policy while driving his or her own vehicle.

The policy also insured any person or organization who is legally responsible for the acts or omissions or anyone insured under Liability coverage of the policy that results in an auto accident involving a covered auto. This is commonly referred to as vicarious liability.

In addition, the policy insures any person or organization who is legally responsible for the acts or omissions of a named insured or family member that results in an accident involving any auto or trailer; however, such a person or organization is not covered if they own or hire the auto or trailer.

It is important to be aware of exclusions that apply to your policy. There are a number of exclusions that help define coverage under the Liability Coverage section of the Personal Auto policy.

Usually, Exclusions include:

• Bodily injury or property damage caused intentionally by the insured.
• Damage to property owned or being transported by the insured.
• Damage to property rented to, used by or in the care of the insured.
• Bodily injury to an insured’s employees.
• Liability arising out of an insured’s ownership or operation of a vehicle used as a public or livery conveyance such as at taxi or limousine.
• Liability arising while the insured auto is being used in an auto business.
• Use of a vehicle without permission.
• Motorized vehicles with fewer than four wheels or designed for use of public roads.
• Vehicles other than covered autos that are owned by the named insured of furnished for the named insured’s regular use.
• Vehicles other than covered autos that are owned by family members or furnished for their regular use. (does not apply for the named insured)
• Vehicles used in prearranged racing or speed contests.

It is important to know your particular auto insurance policy’s terms and conditions. The information listed in this may be different from your actual terms in conditions.

Visit OnlineAutoInsurance.com’s learning center to learn more about car insurance. OnlineAutoInsurance.com provides learning resources as well as the ability to find the right auto insurance company for your needs. Feel free to obtain your online auto insurance quote by completing one simple form.