There is much to know about car insurances. Here is some basic information about the deal with having – or not having – a car insurance.
Who can insure the car?
The car insurance is a thing between the insurance company and the car owner, as the car owner is the one with the financial interest in the car and is responsible for the usage of the car on official roads. Usually, the assumption is that the car owner also is the primary driver. If that is not the case, let the insurance company know who is the primary driver. Then, there will be no fuzz if an accident occurs.
What happens if I don't have a car insurance?
In countries and states where the basic insurance is mandatory, being without this is a crime. In some countries they have solved this by letting the government back up the insurance, in case the owner does not insure the car itself. This is, if this exist, an expensive way for the car owner of getting the proper insurance.
If an accident occurs and no insurance covers it, the risk of having to pay for the damage is overwhelming. If you refuse to pay, the person hurt or whose property got damaged can sue you. If they win in court, the costs will be large.
Is the car insured if someone borrows my car?
Yes, most of the time it is, as long has the borrower has a proper drivers license. The insurance company can, however have objections if the car owner isn't the primary driver. That has to be reported to the insurance company.
Am I insured when I borrow a car?
Well, that depends on the insurance of the car. That particular insurance is the major protection if an accident occurs. But never see yourself as a part included in that insurance and be aware. If the insurance does not cover the costs for an accident you where responsible for, you might find yourself sued. If you have doubts about the coverage of the car or yourself, check for an extra insurance.
I have car insurance, but still got a lawsuit. What happens?
If you have proper car insurance and a lawsuit still is made, most insurance companies cover the expenses for getting an attorney to help you. As a fact, a lot of car insurances also cover a certain amount of legal costs, within a specific limit. Check if this is possible with your insurance. If not, you might consider finding an insurance that will cover this, as the amount of legal costs can reach the sky.
If I drive illegally, does the insurance cover the costs in case of an accident?
No, the insurance does not cover costs for accidents you are responsible for if you drive illegally. This is especially true if you drive drunk. Drunk driving is the thing that can affect your life forever, with jail, lawsuits and higher premiums in the future. But driving without a driver´s license or with a car that isn´t checked by authorities for driving on the road, can also be a big problem if an accident occurs, as the insurance does not cover that either.
