Who Gets Declared At-Fault If The Driver Is Not The Vehicle Owner?

An automobile insurance policy covers everyone living in the policy holder’s household, unless the policy holder has chosen to exclude some member of that particular household. By the same token, the policy’s terms can guarantee coverage to some people that do not live in the designated household. Although the phrase “permissive understanding” has not been included in the policy’s fine print, the insurer appreciates the meaning of that specific phrase.

Whenever a household vehicle gets loaned out, the vehicle’s owner has what is called a “permissive understanding” with the driver. The owner has granted the temporary holder of the car keys the permission to sit in the driver’s seat. Therefore, the same driver has been covered by the vehicle owner’s insurance.

What are the vehicle owner’s responsibilities, if the driver that has gained temporary possession of the keys gets involved in an accident?

If such a development tests the owner’s permissive understanding, that same owner must file a claim. In addition, that same owner must pay the deductible, as requested by the insurer, and must accept an increase in the price of his or her premium.

According to Car Accident Lawyer in Whistler, if the amount of damages is greater than the coverage provided by the vehicle owner’s policy, then the insurance purchased by the recipient of the keys must cover the remaining damages. Alternately, the other driver’s insurance gets used to cover all of the damages. Of course, that alternate approach can only be used if the other driver has been declared “at-fault.”

What determines how an insurance policy will be applied to a given accident?

The insurer does not seek to learn the identity of the person that had been granted permission to hold a set of car keys. Instead, the insurer wants to know if an insured vehicle has been involved in any reported accident. In other words, any type of automobile insurance applies to the insured vehicle and not to the driver.

Who pays for damage to a rented vehicle?

According to the law, the company that rents out various vehicles must cover any set-of-wheels that customers choose to rent. Still, the same company does not want to pay for damages that were caused by an “at-fault” driver. For that reason, any customer that plans to rent a vehicle must pay for added insurance, so that any damages will be covered.

The company that rents-out various vehicles has insured each of them. The insurance company wants to feel confident that the purchased insurance policy will cover any accident-related damages. The renting company supplies that confidence by encouraging each customer to buy an added amount of protection. Consequently, the purchased insurance applies to the vehicle and does not apply to the driver.