Many drivers have noticed that their car insurance premiums have recently risen and as a result say that they would go green in order to save money.
A leading comparison site has found that a quarter of drivers are paying more for their car insurance than they were last year, with the average policy rising by 6 per cent. This increase also seems set to continue as experts believe that there may be further rises to as much as 10 per cent by the end of this year.
The comparison site is warning drivers that unless they shop around and compare prices in order to find cheap car insurance, they could end up paying a lot more than they have to for their premiums.
Out of all of the people questioned in this survey, 28 per cent admitted that they had accepted the increase and only 30 per cent said that they moved to a different insurer after prices increased.
The comparison site said that with prices for things such as mortgages and food rising, we should be taking every step we can in order to save money.
Due to this trend of car insurance costs rising, another price comparison site has found that two thirds of motorists would rather buy a more environmentally friendly car if it meant that their car insurance premiums would be lower.
There are already around two million drivers who claim they drive a ‘green’ car, however; a further 21 million say that they would consider driving one if it meant them having more money as a result.
When motorists were asked what their reasons were for buying an eco friendly car, most admitted that it would be because of the money incentive rather than the any environmental worries they may have.
With many British drivers saying that they would be willing to embrace greener driving, it is down to the Government to give them the incentive by making greener driving cheaper. The problem at the moment is that it doesn’t look to be cheaper, as the cost of repairs could mean that it ends up being a lot more expensive. If the Government was to reduce the cost of road tax for green drivers they would have more of an incentive. However, at the moment, it looks like the best way of ensuring cheaper car insurance is to continue comparing quotes.
Two last points to remember when looking for those all important cheap quotes are to use your specific niche as an advantage. If you are female, statistics have shown that you are more likely to be a safer driver and this has an impact on your car insurance. By searching for women’s car insurance, you may discover that you will be able to find cheaper quotes. You could also try searching for a particular brand of car using the search term BMW car insurance for example.
Monday, May 5, 2008
home insurance
£300 million was paid out by home insurers in flood claims last year, however instead of prices rising, this has seen the competition in the home insurance market increase. The June and July deluge of rain last year, severely damaged thousands of UK properties and cost the sector an estimated £3 billion. This prevents insurers claiming back the losses they saw last year by increasing premium prices this year, it seems cheap home insurance policies can still be found.
Datamonitor thinks that many of the costs insurers saw due to the 2007 floods, will be passed on the recoup by the reinsurance industry. However, the analyst went on to say that it estimates that the gross household insurance claims cost over £4 billion last year. The liabilities of many primary insurers could reduce the profit generated by the market from 2006’s figure of £167 million, to an amazing loss of over £300 million in 2007.
A financial service analyst from Datamonitor, Mahreen Hussein, said: “While the market suffered heavy losses in 2007, premium income actually held up pretty well, and as long as premium rates don’t decline in 2008 we are forecasting a return to profit for the household insurance market.”
Datamonitor also saw an increase in the use of Internet price comparison sites to get competitively priced home insurance deals. However it warns that this is leading to people choosing their home insurance policy purely on the price given.
This is boosting rivalry between insurers, and forcing companies to keep their prices down because of the prices other insurers are offering for similar policies. The ability to use these comparison sites such as Only Insurance, means customers can search for the best price they can get from the majority of insurers available on the market.
Premiums increased marginally in 2007, it is thought they didn’t rise by any significant figure thanks to the abundance of competition across the market. The Association of British Insurers said that its member companies dealt with 165,000 claims as a result of the appalling weather last year.
The floods in Yorkshire, Gloucestershire and Worcestershire cost the industry all together more than £3 billion, combined with other events from last year this made 2007 the worst ever year for weather related claims. According to the ABI the average cost of the property flood damage was £20,000, in many cases all of which was covered by a home insurance policy.
Datamonitor thinks that many of the costs insurers saw due to the 2007 floods, will be passed on the recoup by the reinsurance industry. However, the analyst went on to say that it estimates that the gross household insurance claims cost over £4 billion last year. The liabilities of many primary insurers could reduce the profit generated by the market from 2006’s figure of £167 million, to an amazing loss of over £300 million in 2007.
A financial service analyst from Datamonitor, Mahreen Hussein, said: “While the market suffered heavy losses in 2007, premium income actually held up pretty well, and as long as premium rates don’t decline in 2008 we are forecasting a return to profit for the household insurance market.”
Datamonitor also saw an increase in the use of Internet price comparison sites to get competitively priced home insurance deals. However it warns that this is leading to people choosing their home insurance policy purely on the price given.
This is boosting rivalry between insurers, and forcing companies to keep their prices down because of the prices other insurers are offering for similar policies. The ability to use these comparison sites such as Only Insurance, means customers can search for the best price they can get from the majority of insurers available on the market.
Premiums increased marginally in 2007, it is thought they didn’t rise by any significant figure thanks to the abundance of competition across the market. The Association of British Insurers said that its member companies dealt with 165,000 claims as a result of the appalling weather last year.
The floods in Yorkshire, Gloucestershire and Worcestershire cost the industry all together more than £3 billion, combined with other events from last year this made 2007 the worst ever year for weather related claims. According to the ABI the average cost of the property flood damage was £20,000, in many cases all of which was covered by a home insurance policy.
Insurance clearly explained
Take into consideration that travel distance from your place of residence should not make a difference in your confidence, there are certain risks and uncertainties that you will have to deal with down the way.
That's the major reason why one needs to buy travel insurance for such travels.
Travel insurance covers all of your travel, whether domestically or internationally, until you get back home safely.
Don't overlook the likelihood of some sort of mishap that can happen along the way.
There's also the possibility of people suffering enormous financial loss when they travel, whether domestically or internationally.
If one takes the time to get travel insurance before embarking on any trip, one is adequately protected in the event of any unfortunate occurrence.
Many banks these days sell travel insurance, but the known places to get the travel insurance is from the insurance companies.
All the unpleasant issues that might arise while one is away from home on travels are effectively covered in per-trip travel insurance.
For those who intend to engage in high risk sports while on such travels or who want to visit certain high risk parts countries of the world, they should buy specific travel insurance to cover such risks.
Depending on the particular travel insurance, the rates are always different.
The wise traveler is one that will take the time to search for the best rates for his/her specific travel situation before buying.
A two weeks seventy to one hundred twenty travel insurance package will cover you and your partner to and from any European country.
Rates of traveling to Africa are also similar.
Since terrorists attacks have become the order of the day, ensure that you get travel insurance package that covers such risks if you are traveling to such countries.
That's the major reason why one needs to buy travel insurance for such travels.
Travel insurance covers all of your travel, whether domestically or internationally, until you get back home safely.
Don't overlook the likelihood of some sort of mishap that can happen along the way.
There's also the possibility of people suffering enormous financial loss when they travel, whether domestically or internationally.
If one takes the time to get travel insurance before embarking on any trip, one is adequately protected in the event of any unfortunate occurrence.
Many banks these days sell travel insurance, but the known places to get the travel insurance is from the insurance companies.
All the unpleasant issues that might arise while one is away from home on travels are effectively covered in per-trip travel insurance.
For those who intend to engage in high risk sports while on such travels or who want to visit certain high risk parts countries of the world, they should buy specific travel insurance to cover such risks.
Depending on the particular travel insurance, the rates are always different.
The wise traveler is one that will take the time to search for the best rates for his/her specific travel situation before buying.
A two weeks seventy to one hundred twenty travel insurance package will cover you and your partner to and from any European country.
Rates of traveling to Africa are also similar.
Since terrorists attacks have become the order of the day, ensure that you get travel insurance package that covers such risks if you are traveling to such countries.
Life Insurance
Home cover is the second most important insurance for consumers, it comes just behind car insurance which is a legal requirement.
This is according to Graeme Trudgill, the British Insurance Broker’s Association (Biba)’s corporate affairs executive, he said that the flooding of last year showed just how important home insurance is, it also brought to life that 25% of homeowners did not have adequate cheap home insurance policies.
Trudgill elaborated: "Home insurance is absolutely the second most important insurance you can buy. The first is motor insurance if you have a car because it is a legal requirement but home insurance is critical for several reasons.
"Firstly, if you have a mortgage there will be a contract between you and the mortgage provider which almost certainly says that you have to take out buildings insurance and if you don't you will be in breach of your mortgage contract."
All of people’s “worldly goods and investments” are tied up in their home, if people do not hold sufficient home insurance policies they could lose everything if anything happened.
"Insurance premiums for buildings and contents insurance have hardly changed in the last ten years - they are very low, they are great value for money and it's really competitive out there at the moment," Trudgill concluded.
Another time when home insurance is vital for mortgage holders, according to Homebuilding and Renovating magazine, is during any renovation work on a house. Having a good home insurance policy will cover home owners in the event of a mishap, if people are not covered properly by their insurance they could suffer a significant financial loss if anything goes wrong with a renovation.
Editor of Homebuilding and Renovating magazine, Jason Orme, highlighted the importance of fully insuring a property during any ongoing renovation work, regardless of how big or small a project is.
During DIY work on a property, home insurance is not likely to be at the forefront of home owners minds, however this is an essential time to make sure you are properly covered. Accidents can often happen when decorating or renovating a property, spilled paint, damage to walls from mis-placed drilling or other damage caused by DIY work can cause the need for costly repairs, a good home insurance policy will cover you for this damage and will mean you do not need to put your hand into your pocket.
Mr Orme stressed that home insurance options should be fully considered even when bringing in professional to decorate or renovate your property for you. He said: "If you are undertaking substantial work and you need to move out then you need to [obtain] specialist renovation insurance - that's very similar to the insurance people take out when they're building their house," he advised.
This is according to Graeme Trudgill, the British Insurance Broker’s Association (Biba)’s corporate affairs executive, he said that the flooding of last year showed just how important home insurance is, it also brought to life that 25% of homeowners did not have adequate cheap home insurance policies.
Trudgill elaborated: "Home insurance is absolutely the second most important insurance you can buy. The first is motor insurance if you have a car because it is a legal requirement but home insurance is critical for several reasons.
"Firstly, if you have a mortgage there will be a contract between you and the mortgage provider which almost certainly says that you have to take out buildings insurance and if you don't you will be in breach of your mortgage contract."
All of people’s “worldly goods and investments” are tied up in their home, if people do not hold sufficient home insurance policies they could lose everything if anything happened.
"Insurance premiums for buildings and contents insurance have hardly changed in the last ten years - they are very low, they are great value for money and it's really competitive out there at the moment," Trudgill concluded.
Another time when home insurance is vital for mortgage holders, according to Homebuilding and Renovating magazine, is during any renovation work on a house. Having a good home insurance policy will cover home owners in the event of a mishap, if people are not covered properly by their insurance they could suffer a significant financial loss if anything goes wrong with a renovation.
Editor of Homebuilding and Renovating magazine, Jason Orme, highlighted the importance of fully insuring a property during any ongoing renovation work, regardless of how big or small a project is.
During DIY work on a property, home insurance is not likely to be at the forefront of home owners minds, however this is an essential time to make sure you are properly covered. Accidents can often happen when decorating or renovating a property, spilled paint, damage to walls from mis-placed drilling or other damage caused by DIY work can cause the need for costly repairs, a good home insurance policy will cover you for this damage and will mean you do not need to put your hand into your pocket.
Mr Orme stressed that home insurance options should be fully considered even when bringing in professional to decorate or renovate your property for you. He said: "If you are undertaking substantial work and you need to move out then you need to [obtain] specialist renovation insurance - that's very similar to the insurance people take out when they're building their house," he advised.
Green Vehicles
The recent budget speech saw an increase in car tax and a 2p rise in fuel costs effective from October 2008. Critics believe that these increases will put a strain on car drivers who are already paying the highest ever prices for fuel, another bone of contention is whether the tax cuts for greener cars will encourage drivers to consider cleaner transport.
The only good news for drivers that came out of the budget changes was that the Chancellor decided to delay to 2p increase on fuel prices until October 2008, however since the cost of fuel is already at an all time high currently at 106.1p per litre.
Ashton Berkhauer, an insurance expert at uSwitch.com said: “The budget announcement may prove a bitter pill to swallow for Britain’s 41.7 million motorists. Only those drivers opting for the least polluting vehicles, currently representing just 0.2% of all cars on the road will be incentivised.”
The head of insurance.co.uk, Steve Grainger said: “For those who are already stretching to meet petrol prices, October will arrive all too quickly.”
There has been a lot of speculation in recent months that the highest polluting vehicles will start to face penalties and environmentally friendly drivers will be rewarded. So the announcement that from 2010 drivers with the most environmentally friendly vehicles will not pay any tax in their first year was no surprise. The most polluting vehicles can expect to see an increase in the price of their tax, Band G vehicles are expected to see an increase of 233% from £300 to £1,000 in the first year.
Berkhauer said: “Drivers of green vehicles are best off financially. Our research shows that eco-friendly car owners currently save £165.40 a year on fuel compared to those driving standard cars. The increase in October will boost this saving to almost £170 a year.”
“The new proposal could see larger family cars, such as the Renault Espace, being subjected to the same tax as a new Lamborghini Gallardo. An extra £1,000 may be small change to a Lamborghini buyer considering the £126,350 price tag. However, this could be a real strain on an average family’s budget.”
It is estimated that Britain’s roads will house 55,900 green cars by the end of 2008, although this only makes up 0.2% of all UK registered vehicles.
Some critics are disappointed that the Chancellor hasn’t done more to encourage green transport. Tescocompare.com’s spokesman Matthew Dransfield said: "We fully support today's announcement to encourage consumers to be more environmentally conscious when buying a car. However, we are disappointed that the Chancellor did not look wider to the cost barriers for purchasing green cars and consider cutting Insurance Premium Tax for these cars as an added incentive to go green.”
Car insurance for a green car can cost £50 more than a non-green car of a similar size and with similar features because it costs more to repair green cars. Dransfield explained: “With the average car insurance premium being £400 - the removal of the 5% insurance premium tax on 'green' cars would make the cost of insuring one equivalent to a similar standard car. Motorists can do a lot to cut their carbon emissions as well as their insurance costs by reducing annual mileage, having their car serviced regularly, regularly checking tire pressure and limiting the amount of time spent idling, all of which will increase fuel efficiency and decrease carbon emissions.”
There are a couple of car insurers who offer special policies for green vehicles and customer’s attitudes towards green vehicles are changing dramatically meaning that more insurers will need to offer reasonable policy prices for green vehicles.
The only good news for drivers that came out of the budget changes was that the Chancellor decided to delay to 2p increase on fuel prices until October 2008, however since the cost of fuel is already at an all time high currently at 106.1p per litre.
Ashton Berkhauer, an insurance expert at uSwitch.com said: “The budget announcement may prove a bitter pill to swallow for Britain’s 41.7 million motorists. Only those drivers opting for the least polluting vehicles, currently representing just 0.2% of all cars on the road will be incentivised.”
The head of insurance.co.uk, Steve Grainger said: “For those who are already stretching to meet petrol prices, October will arrive all too quickly.”
There has been a lot of speculation in recent months that the highest polluting vehicles will start to face penalties and environmentally friendly drivers will be rewarded. So the announcement that from 2010 drivers with the most environmentally friendly vehicles will not pay any tax in their first year was no surprise. The most polluting vehicles can expect to see an increase in the price of their tax, Band G vehicles are expected to see an increase of 233% from £300 to £1,000 in the first year.
Berkhauer said: “Drivers of green vehicles are best off financially. Our research shows that eco-friendly car owners currently save £165.40 a year on fuel compared to those driving standard cars. The increase in October will boost this saving to almost £170 a year.”
“The new proposal could see larger family cars, such as the Renault Espace, being subjected to the same tax as a new Lamborghini Gallardo. An extra £1,000 may be small change to a Lamborghini buyer considering the £126,350 price tag. However, this could be a real strain on an average family’s budget.”
It is estimated that Britain’s roads will house 55,900 green cars by the end of 2008, although this only makes up 0.2% of all UK registered vehicles.
Some critics are disappointed that the Chancellor hasn’t done more to encourage green transport. Tescocompare.com’s spokesman Matthew Dransfield said: "We fully support today's announcement to encourage consumers to be more environmentally conscious when buying a car. However, we are disappointed that the Chancellor did not look wider to the cost barriers for purchasing green cars and consider cutting Insurance Premium Tax for these cars as an added incentive to go green.”
Car insurance for a green car can cost £50 more than a non-green car of a similar size and with similar features because it costs more to repair green cars. Dransfield explained: “With the average car insurance premium being £400 - the removal of the 5% insurance premium tax on 'green' cars would make the cost of insuring one equivalent to a similar standard car. Motorists can do a lot to cut their carbon emissions as well as their insurance costs by reducing annual mileage, having their car serviced regularly, regularly checking tire pressure and limiting the amount of time spent idling, all of which will increase fuel efficiency and decrease carbon emissions.”
There are a couple of car insurers who offer special policies for green vehicles and customer’s attitudes towards green vehicles are changing dramatically meaning that more insurers will need to offer reasonable policy prices for green vehicles.
Safety For Women Driver
It seems that some fashions, although immensely popular with celebrities, fashion magazines and the general public, are not the most practical for female drivers. The latest craze for long fringes is putting people on the road in danger. Eye-skimming fringes, copied from celebrity styles, mean some female drivers are in danger of a disaster, a survey revealed.
The survey revealed that 67% of women have a hairstyle which could, potentially, fall into their eyes while they are driving a vehicle. In this poll, which was conducted of 1,000 female drivers, half admitted they did not tie back their hair before embarking on a journey. 33% did not think it was necessary to control their hair before driving and 8% said they did not want to ruin their hair.
Of the women surveyed 1% admitted that their hairstyle had caused an accident, near-miss or a sudden, unexpected manoeuvre due to their vision being temporarily impaired. The survey was conducted by women’s car insurance company Sheila’s Wheels, and also discovered three out of five women take their hands from the wheel to rearrange their hair or move it out of their eyes.
Sheila’s Wheels’ spokesperson, Jacky Brown commented: "Not many women think of their hair as a potential driving distraction. But with the latest trends requiring styling round the face and eyes, it's essential we are aware of safety."
According to the survey, women in Northern Ireland were the most fashion conscious, 80% regularly change their hairstyle to keep up with the latest trends. North-east England’s women were least concerned about following fashion trends and south-west England’s women drivers have the most practical driving haircuts.
Brown pointed out: "There are so many hair accessories available that can secure hair in place without compromising style. It's just about finding the right one for you and making sure it's handy whenever you step behind the wheel."
High profile hairdresser, Martyn Maxey commented on the study, he said: “For some celebrities, a change of hairstyle is headline news. Take Kate Moss and The Fringe for example – in recent weeks we’ve been inundated with requests for the long fringe and despite it falling over the eyes, it’s now a fashion statement and people want it.”
Maxey continued by giving tips for having beautiful hair and driving safely, he recommended keeping a hairband, headband or alice band in the car’s glove compartment at all times. He said that for the extremely style conscious there are many different styles of hair slides available to clip long fringes or styles that may interfere with driving, back.
Other suggestions he makes are to leave a chunky velcro roller in a long fringe while driving to keep it out of your eyes, when you arrive at your destination your fringe will be perfectly styled, for the ultimate glamour, a pair of designer sunglasses propped on top of your head will keep all stray hairs out of your face.
Fashionable hairstyles are obviously not only going to be practical for driving, however it is easy enough for women to keep a range of hair accessories in their car to minimise risks of accidents due to something as silly as hair in the eyes.
So, is it worth risking accidents to stay stylish in the car? It seems that it is not only the risk of hair falling into the eyes and obstructing vision that is a problem, but also women removing both their attention from the road and their hands from the wheel to rearrange their hair.
The survey revealed that 67% of women have a hairstyle which could, potentially, fall into their eyes while they are driving a vehicle. In this poll, which was conducted of 1,000 female drivers, half admitted they did not tie back their hair before embarking on a journey. 33% did not think it was necessary to control their hair before driving and 8% said they did not want to ruin their hair.
Of the women surveyed 1% admitted that their hairstyle had caused an accident, near-miss or a sudden, unexpected manoeuvre due to their vision being temporarily impaired. The survey was conducted by women’s car insurance company Sheila’s Wheels, and also discovered three out of five women take their hands from the wheel to rearrange their hair or move it out of their eyes.
Sheila’s Wheels’ spokesperson, Jacky Brown commented: "Not many women think of their hair as a potential driving distraction. But with the latest trends requiring styling round the face and eyes, it's essential we are aware of safety."
According to the survey, women in Northern Ireland were the most fashion conscious, 80% regularly change their hairstyle to keep up with the latest trends. North-east England’s women were least concerned about following fashion trends and south-west England’s women drivers have the most practical driving haircuts.
Brown pointed out: "There are so many hair accessories available that can secure hair in place without compromising style. It's just about finding the right one for you and making sure it's handy whenever you step behind the wheel."
High profile hairdresser, Martyn Maxey commented on the study, he said: “For some celebrities, a change of hairstyle is headline news. Take Kate Moss and The Fringe for example – in recent weeks we’ve been inundated with requests for the long fringe and despite it falling over the eyes, it’s now a fashion statement and people want it.”
Maxey continued by giving tips for having beautiful hair and driving safely, he recommended keeping a hairband, headband or alice band in the car’s glove compartment at all times. He said that for the extremely style conscious there are many different styles of hair slides available to clip long fringes or styles that may interfere with driving, back.
Other suggestions he makes are to leave a chunky velcro roller in a long fringe while driving to keep it out of your eyes, when you arrive at your destination your fringe will be perfectly styled, for the ultimate glamour, a pair of designer sunglasses propped on top of your head will keep all stray hairs out of your face.
Fashionable hairstyles are obviously not only going to be practical for driving, however it is easy enough for women to keep a range of hair accessories in their car to minimise risks of accidents due to something as silly as hair in the eyes.
So, is it worth risking accidents to stay stylish in the car? It seems that it is not only the risk of hair falling into the eyes and obstructing vision that is a problem, but also women removing both their attention from the road and their hands from the wheel to rearrange their hair.
Protected if Someone
Are You Protected if Someone Borrows Your Car?
If you like to occasionally let someone borrow your car, you may be concerned about whether or not your car is protected if that person gets in an accident. After all, what would you do if your car was damaged in an accident while someone else was driving? In addition, are you held liable for the injuries that person sustains or for the injuries of other people involved in the accident? In order to keep yourself safe, it is important to know your rights and responsibilities as the owner of the car.
Coverage for You Versus Coverage for the Car
When you obtain automobile insurance for your vehicle, it is important to realize that the coverage actually belongs to the car rather than to you. Of course, you are directly affected by the coverage. Nonetheless, your policy will extend the same type of coverage to anyone that is driving the car as you would receive – assuming that person had permission to drive your car.
Keep in mind that you do not necessarily have to provide a person with permission to drive your vehicle. Anyone that is licensed, related to you, and living in your home, for example, is automatically assumed to have your permission to drive the car. This relation can be through blood, marriage, or adoption. Licensed foster children are also automatically assumed to have your permission.
Of course, anyone that is listed on your policy is also covered when driving your vehicle. Family members that don’t live with you are also assumed to have permission, as are children that have gone off to college but still list your address as their permanent address.
Aside from the people that are automatically assumed to have your permission, anyone that you allow to drive your vehicle will also be covered by your policy. Therefore, if you have full coverage that includes collision and comprehensive, your car will be protected if someone wrecks it while borrowing it. If you only have minimum liability insurance, on the other hand, only the other people involved in the accident will be compensated.
What if the Driver is Injured?
Aside from worrying about your car if someone gets into an accident while driving it, you may also be worried about whether or not you are liable to pay for the person’s injuries. In short, you have nothing to worry about. Depending upon your policy and state regulations, your insurance might pay for these expenses. If not, the person that drove your vehicle is responsible for taking care of his or her own medical expenses. Unless you knowingly gave that person a defective vehicle and did not tell that person about the problem, you cannot be found guilty of negligence and you are not responsible for the injuries in any way.
If you like to occasionally let someone borrow your car, you may be concerned about whether or not your car is protected if that person gets in an accident. After all, what would you do if your car was damaged in an accident while someone else was driving? In addition, are you held liable for the injuries that person sustains or for the injuries of other people involved in the accident? In order to keep yourself safe, it is important to know your rights and responsibilities as the owner of the car.
Coverage for You Versus Coverage for the Car
When you obtain automobile insurance for your vehicle, it is important to realize that the coverage actually belongs to the car rather than to you. Of course, you are directly affected by the coverage. Nonetheless, your policy will extend the same type of coverage to anyone that is driving the car as you would receive – assuming that person had permission to drive your car.
Keep in mind that you do not necessarily have to provide a person with permission to drive your vehicle. Anyone that is licensed, related to you, and living in your home, for example, is automatically assumed to have your permission to drive the car. This relation can be through blood, marriage, or adoption. Licensed foster children are also automatically assumed to have your permission.
Of course, anyone that is listed on your policy is also covered when driving your vehicle. Family members that don’t live with you are also assumed to have permission, as are children that have gone off to college but still list your address as their permanent address.
Aside from the people that are automatically assumed to have your permission, anyone that you allow to drive your vehicle will also be covered by your policy. Therefore, if you have full coverage that includes collision and comprehensive, your car will be protected if someone wrecks it while borrowing it. If you only have minimum liability insurance, on the other hand, only the other people involved in the accident will be compensated.
What if the Driver is Injured?
Aside from worrying about your car if someone gets into an accident while driving it, you may also be worried about whether or not you are liable to pay for the person’s injuries. In short, you have nothing to worry about. Depending upon your policy and state regulations, your insurance might pay for these expenses. If not, the person that drove your vehicle is responsible for taking care of his or her own medical expenses. Unless you knowingly gave that person a defective vehicle and did not tell that person about the problem, you cannot be found guilty of negligence and you are not responsible for the injuries in any way.
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