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Girl With Drivers LicenseIf you've ever loaned your car to a friend who then allowed another person to drive your car, you may have been a little concerned about coverage. You may have wondered about what your auto insurance would cover if the third party were to be involved in an accident. Would your insurer provide the same level of coverage if the third party was in an accident as it would for you?

Fortunately, auto insurance policies include the omnibus clause, which extends permission beyond a second party to a third party driving your car, as long as that third party has permission to drive the vehicle.

What Constitutes Permission For The Omnibus Clause?

Although permission is determined differently in each state, most states base permission on relationships. In essence, you don't have to explicitly say that your child's friend can drive your car in order to get the coverage. Based on the relationship between you and your child, the courts will likely assume your child's friend didn't steal your car, and that he or she had permission to drive (though these rules may vary by state).

Understanding Insurance Restrictions

In addition to having permission, the third party driving the car must be operating your car within the boundaries of the insurance policy — they can't do anything illegal or anything that isn't included in your insurance coverage. For instance, it's likely that your insurance company will not cover damages if they discover your car was wrecked during the commission of a crime. Since coverage isn't provided to you in this situation, your insurance company wouldn't extend your auto insurance coverage to a third party either.

Get Covered

Not all insurance policies offer you the protection of the omnibus clause. If you find that you need the extra protection, you should talk to your insurance agent to ensure you have all the coverage you need. Your insurance provider can help you determine who can drive your car and be covered under the omnibus clause. Additionally, you can deliberately exclude individuals from certain coverage if you want to lower the cost of your insurance.

Your car insurance exists to offer you financial protection if you experience a loss. When you allow someone to use your car, there is a risk that they could wreck your car. As a result, it's important that you ensure you have the right insurance coverage so that you can protect yourself and your vehicle if it is wrecked.

Do you have enough coverage? Call Lancette Agency, LLC at (651) 264-1230 for more information on Minneapolis MN auto insurance.
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