So basically I was going back home and I was unable to drive because I wasn’t feeling well, I authorized a friend to drive us back home and she crashed my car and totaled it. I was also in the car. I called the lady that organizes my insurance and she said that my insurance is a (comercial insurance) and that they might not cover the accident because my friend wasn’t in the policy. But I also read that if I wasn’t able to drive and I authorized this friend to drive me home once even though she is not on the policy, they would cover it. So I’m a little bit confused because this is my first time ever being in an accident and that my car was totaled and I wasn’t even driving. What would happen next?
Update: I called the lady that organizes my insurance and she said I also have “personal use” included on my commercial insurance.
Totaled car driven by a friend
byu/Unlucky-Chapter3208 inpersonalfinance
Posted by Unlucky-Chapter3208
9 Comments
What country are you in?
Why did you have commercial insurance on a personal vehicle? Did you not have personal insurance?
> What would happen next?
File a claim and let the insurance adjuster determine if it’s covered or not.
Did you file the claim yet?
do you have personal and commercial coverege?
Do you have a personal car insurance policy as well, or a rider permitting personal uss? In most states (probably all, but I have no way to confirm) it would be required if you use the same car for your personal life and work activities.
The reverse is sometimes okay, having a personal policy and using your car for occasional business use. But commercial policies generally exclude personal use, requiring a separate personal policy or an add-on personal use rider.
> But I also read that if I wasn’t able to drive and I authorized this friend to drive me home once even though she is not on the policy, they would cover it.
Policy language is everything, but my guess is this authorization is only valid if it’s within the scope the commercial use.
you have to read your policy if it allows occasional drivers that are not listed on the policy to drive the car.
usually personal insurance will include this unless you say specifically “no i will never let someone else drive my vehicle”
but i could see commercial insurance not having this by default because why would someone who is not a listed employee be driving a company car?
First off, it is important to note that the insurance covers The Car; not you as a driver. So it doesn’t matter that you weren’t driving- any lawsuit/charges still go through your car insurance policy; not your friend’s.
BUT… Some policies do not cover other drivers, or drivers not in your household, etc. If it’s commercial, it could very likely exclude coverage for non-employees, etc. So it’s very important to read the nitty gritty of the policy.
Don’t ever let anyone borrow your car ever for future reference
You authorized the use of the car to that friend. Assuming they don’t constantly use your car, ur covered. Only negative is YOUR rates will skyrocket but yes you should be able to get full coverage for this.