Do You Need Third-Party Insurance to Drive Someone Else’s Car?

People frequently lend and borrow things from their family and friends. These things can include money, small household items, and, on occasion, cars. But what if your lent four-wheeler is damaged in an accident for whatever reason? Or, what happens when you take someone else’s car and get directly involved in an accident? Most people have this question, and we’ll answer it here in this post. So, let us get started!

Here is when we talk about 3rd party car insurance policy.

Third party car insurance is basically a policy that protects you, your four-wheeler, as well as third-party obligations in the event of a mishap. In the event of an accident, you’ll be protected under the terms and conditions of your insurance for four-wheelers. 

Nonetheless, the most prevalent misunderstanding among policy seekers is “what’ll happen to my car insurance plan if my four-wheeler is damaged in an accident while someone other than me is driving it?

So, How Does Insurance for Third-Party Work?

According to the 1988 Motor Vehicles Act, every four-wheeler on Indian roads must be covered under standard insurance for third-party policy. Aside from guaranteeing legal compliance, a four-wheeler third-party insurance policy offers you a basic coverage umbrella at pocket-friendly premium rates. 

This standard insurance policy compensates third-party damages, disability, or death caused by accidents involving the covered four-wheeler. But, while compulsory, third-party four-wheeler insurance doesn’t cover the losses incurred by the insured vehicle or the driver in the case of an accident. However, you may relax about the financial element of an accident since this particular policy has your back.

Who’s Covered While Driving Your Four-Wheeler?

Understanding who is insured by your third-party car insurance online policy to drive your car might be perplexing. Although four-wheeler insurance coverage differs from one insurance company to the next, as a general rule, your insurance provider will cover practically every driver in your vehicle.

Nonetheless, if any individual is specifically included in your four-wheeler insurance’s “excluded drivers” list, they will not be protected while driving your car.

So, certainly, you can lend your four-wheeler to family members and friends who do not reside with you, as “permissive use” typically applies in these situations. The term “permissive use” means that if you give someone permission to drive your four-wheeler, they’ll be covered by your third-party or comprehensive insurance plan.

Factors Influencing This Liability Coverage

Well, whether your comprehensive car insurance or third-party insurance coverage will cover the damage or responsibility caused by when you need to drive someone else’s car or have given your car to someone else to drive is dependent on a variety of circumstances, including:

  • The driver of your four-wheeler must be within the age range for drivers covered by your motor insurance plan.
  • The person driving your four-wheeler must have a valid licence. 
  • The individual must not be driving when intoxicated. 

How Will Your Four-Wheeler Insurance Plan Cover the Damage?

If you have a car online insurance policy and are involved in an accident that causes third-party bodily injury or property damage to another motorist, your insurance provider will pay for the damages in accordance with the terms and conditions of your plan. Injuries to people and damage to the vehicle will be covered if the insurance contains liability and collision coverage.

But, if you are driving someone else’s car or someone has taken your car to drive and gets into an accident, would their insurance coverage cover the injuries and damage or yours? The severity of the accident will determine the response to this inquiry.

The coverage provided by the car insurance plan will be determined by the following factors:

  • If the collision is minimal, resulting in modest damage to your vehicle, your insurance will most likely cover the incident if all of the requirements are satisfied. Your insurance coverage will protect you, your vehicle, and anybody else driving it (excluding cases if someone uses your four-wheeler without your permission).
  • If anyone is involved in an accident that causes significant bodily harm to others as well as extensive property damage, your third-party four-wheeler insurance coverage will just cover the property damage that is caused by your four-wheeler and not the injuries suffered by others.

The Key Takeaway

So, if someone else crashes your car in an accident, your four-wheeler insurance plan may give coverage depending on the terms and conditions of your insurance plan. Nonetheless, there may be times when you must pay for the damage yourself or hold someone financially liable for the sum.

As a result, before you contemplate lending someone your four-wheeler, you should check the driver’s licence status as well as the terms and conditions of your four-wheeler insurance policy. You may contact your insurance carrier online or by phone for further information or details regarding your policy’s coverage. Also, if you do not have insurance, get motor insurance online.