Imagine lending your car to a child, and an accident occurs – does your car insurance cover the damages? Typically, yes, but not always.
“Normally, insurance covers damages to the vehicle, regardless of the driver. If the policy does not have restrictions at this level, the rule also applies to newly licensed drivers who occasionally drive the car. But it’s not always like that,” explains DECO PROTeste.
The consumer protection organization clarifies that “in the case of comprehensive damage coverage, some insurers foresee a doubling of the deductible value if the vehicle is driven by someone under 25 years old and/or licensed for less than two years, who is not the policyholder, due to representing a higher risk than the usual driver declared in the policy.”
“Logos goes further, excluding optional coverages in accidents involving vehicles driven by people not identified in the contract when they imply a higher level of risk, considering the policy conditions,” states the DECO PROTeste website.
Furthermore: “A driver under 25 years of age and/or with a license for less than two years is among those whom insurers identify as having a higher potential to cause accidents. Therefore, they may have to pay a premium 40 to 100% higher than that of an experienced driver.”
Insurance in the parents’ name? “Not advisable practice”
“To avoid these surcharge increases, it’s common for parents to take out the insurance, declaring themselves as the regular drivers of the vehicle that, in reality, will mainly be used by the young person. This practice is not advisable, as in case of an accident, the insurer may claim false declarations and refuse to pay the compensation,” advises the organization.
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Lent the car and got fined by a radar: who pays?
DECO PROTeste explains that the “Highway Code explicitly states that the owner is not responsible for the payment if they prove that the driver violated the rules.”
“If someone is stopped for speeding, they will be identified, and the responsibility lies with the driver,” notes the consumer protection organization.
“If you receive the fine at home because the car was caught by a speed control radar or motorway toll, the first step is to request payment from the person driving. If they refuse and you cannot prove who the driver was, the consequences fall on the owner,” clarifies the consumer protection organization.
Email scams are increasingly common. Some schemes have used alleged traffic violations to obtain payments or information illegitimately. Be alert to some signs to dismiss these messages.
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