Most believe auto insurance follows the driver, not the vehicle. Not the case in Montana where insurance follows the vehicle.
Before you lend your car to a friend or let a family member not listed on your auto insurance policy drive your car, be sure you understand your insurance coverage in the event of an accident. You may assume if your friend borrows your car and has an accident it is your friend's auto policy that will pay. In fact your insurance company may have to cover the costs whether your friend has auto insurance or not.
The general rule is that your auto insurance policy insures your car. Your coverage may be extended to cover the actions of a driver using your vehicle that is not listed on your policy under the permissive user rule if certain tests are met; the driver doesn't live with you, doesn't drive the car regularly, is not an owner of the vehicle, has a valid driver's license, has your permission to drive the car, and is not specifically excluded from driving the car under the terms of your auto insurance policy.
If costs related to the accident are greater than your auto insurance policy's limits and your friend has auto insurance, then your friend's insurance policy may pay the excess costs.
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Darnielle Insurance is available to answer your questions. We are located at 1320 28th Street West, Billings, MT 59102. Give us a call at 406-652-4180.