Question

Will my insurance company cover someone not on my policy?

I was teaching my younger sister to drive and she crashed into a car while turning left. As she does not have her license yet, she is not on my policy, but the accident was her fault. Will my insurance company cover the damages?

Jul 2, 2018 Austell, GA

Answer
Taylor Covington

Jul 2, 2018

Unfortunately, this is not a straight-forward answer. While there are a lot of factors that determine whether or not your insurance company will pay for the damages, the number one thing to consider is if your policy has permissive use. If it does, this means someone can borrow your car with your permission and the insurance will cover the claim. However, this only applies if your sister does not live in your household or drive the car on the policy regularly. If she does live with you and drives the car regularly, then she must be listed on the policy, simply because she's of driving age. You can list her as an excluded driver, but that wouldn't help at all with coverage. The best route may be to not file a claim at all. If the insurance company does pay out a claim, it can show up on your claims history for up to five years afterwards, which means higher rates.

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