Loaned Vehicles Update
My 21-year-old son owns his own insured car, but he lives out of town for school, and his legal address isn’t mine. He often borrows my fully insured spare vehicle, but recently he got into an accident with it. I believed that the insurance would cover the car under these circumstances.
I recently filed a claim, and the initial response from the insurance company was to send me a form asking whether he “may live in the household” and “may regularly drive the vehicle.” It turns out their definition of “regular use” means driving more than once a week. He drives my spare car intermittently and sometimes leaves his car at my house.
I’m now concerned that they might deny the claim. The damage is likely under $5,000, so it’s not a huge issue, but still stressful.
Edit: Coincidentally, I’m lending him and my daughter a different vehicle this week for their trip to Florida. She has her own car and insurance as well and is also living away at college. They have never driven this particular vehicle before. Before reading the responses here, I would have assumed this would be perfectly fine.
It sounds like you’re in a tricky situation. From what you’ve shared, it seems the insurance company is looking at the specifics of how often your son drives the spare vehicle. Since they define “regular use” as more than once a week, if your son drives it occasionally, they might consider this to be an exception, but it ultimately depends on the specifics of your policy.
Here are a few points to consider:
Insurance Policy Terms: Review your insurance policy to see how it defines “regular use” and any stipulations regarding other drivers. If it requires that all regularly-driving household members be listed on the policy, you may need to adjust your coverage.
Claim Outcome: Given that you’ve already filed a claim and are receiving these forms, it’s possible they’re trying to determine if the accident falls within the coverage of your policy. If they conclude that the use of the vehicle by your son doesn’t meet their criteria for coverage, they might deny the claim, but if your policy covers occasional use by a child living away from home, you might still be in the clear.
Loaning Other Vehicles: Regarding the second vehicle you’re loaning to your daughter, as long as she has her own insurance and has never driven that specific vehicle before, it should generally be fine. However, it’s wise to inform your insurance of any changes or temporary arrangements to ensure you’re covered properly.
Communication with Your Insurer: It may be beneficial to contact your insurance company directly to clarify the situation. Explaining your son’s usage pattern and asking for guidance can provide you with a clearer understanding of how best to proceed.
Staying proactive and in communication with your insurer could help mitigate any issues down the line. Best of luck!