Collision Coverage Auto Insurance Texas TX

Reader’s Question:

My friend drives my car every now and then here in Texas. He is listed in my auto insurance policy, and he also has his own auto insurance. Now, if he gets in an accident, is it true that his auto insurance will be the one that covers the damage?

Charlene

Austin, TX

Charlene of Texas, you would be wrong. If your friend figures in an accident while driving your car, your auto insurance policy will be the one to step in and handle things. You will be the one who will file a claim. Since your friend is listed as a driver in your policy, this accident will surely be covered.

If your driver friend is the one at fault, your collision coverage will step in. Collision coverage handles accidents where the driver of the car that’s insured is the one at fault. In other words, if the accident has something to do with the driver’s driving skills, collision coverage is the part of your policy that steps up. But if your driver friend is not the one at fault, the other driver’s insurance will have to shoulder the damages.

If your friend was at fault, there is a chance that his or her auto insurance coverage will be included in the equation. If the amount of the damage far exceeds the amount stipulated by your auto insurance policy, your friend’s auto insurance policy will cover the remaining cost. You may need to check the details of your and your friend’s auto insurance policies to be really sure on this.

Unfortunately, even if it wasn’t you who was driving the car, the auto insurance claim will go on your record, and it will affect your auto insurance rate when you renew your coverage.

Tags: auto insurance coverage, collision insurance coverage, non owners insurance