Short answer? The latter. Here's the deal: Car insurance covers anyone who has permission or the reasonable assumption of permission to drive your car. So if a friend borrows your car and hits someone/thing, it's ok. Here's the tricky thing, though--if someone is a member of your household, they have to be listed on your policy. This is where things get a little silly: If your significant other lives apart from you and drives your car gets into an accident, no problem. But if you and your SO shack up together and the same thing happens, your SO better be on your policy, or the both of you could get screwed.

If the driver of the car is a named driver in the car insurance policy (meaning he is not the owner of the car but is an occassional driver) then he is covered. If he gets into an accident, then you (as the primary plan holder) can make a claim.

If the car was involved in an accident or incident (theft, etc) and the driver is not a named driver, then might not get compensation for this. I hope this helps!

Car insurance
Car insurance companies
http://www.autoquotenow.com

This is a question that seems easy and clear: but as is often the case- "God is in the details"

The people that are covered on a private Auto Insurance policy are the listed drivers on the declarations page of the policy as well as "Any other person using the owned auto to whom the named insured has given permission providing the use is within the scope of such permission"

Most Auto insurance policies will make a distinction between drivers that live at your residence. The rule of thumb is; anyone that lives at your home, and or who has "Regular access" to your car, must either be added to your policy or excluded off of your policy.

As I tell my clients..... an accident is a bad time to find out you have a problem.
Be very careful and make sure you give accurate info to your agent when you are applying for insurance. Being a bit "Unclear" with the driver's list can at times save you a few dollars; but in the event of a major accident it could result in your car being uninsured.

Larry Lubell
www.urbaninsuranceagency.com