A question we often get at Premier Insurance Agency in Detroit, MI, where we serve customers from all over the state, is, "Am I covered when someone borrows my car and has an accident?"

In Michigan, someone who drives your car is covered by your insurance when they have your permission, they have a valid Michigan driver’s license, and they meet two other requirements:

• They own a vehicle that is registered and insured in Michigan and
• They aren’t excluded from your policy.

They are also covered if they have their own coverage for driving any car.

Exceptions to the Rule

Unfortunately, there are some situations where your insurance may not cover the accident, including:

• The driver borrowed your car without permission.
• Another driver caused the accident (because Michigan is a no-fault state).
• The guest driver lives in a state other than Michigan and does not own a car that is registered in Michigan.

If the person driving your car has insurance, they must file a claim with their own insurance. If they don’t have no-fault insurance, they can submit a claim with a relative’s auto insurance company.

What’s the Bottom Line?

All Michigan drivers need no-fault auto coverage. It is always best to lend your car only to people who drive in Michigan or another no-fault state, or at least live in Michigan with another insured driver, or better yet, to friends who have auto insurance. This also applies to lending your Michigan car outside the state. Rental vehicles will be insured when you check them out of the rental agency.

Insurance can be complicated. At Premier Insurance Agency in Detroit, MI, we have the answers to all of your questions about Michigan auto insurance. Call us today!