If you share your car with family or friends, you may wonder, “Can someone drive my car if they are not on my insurance policy in North Carolina?” Auto insurance practices change often, so it’s important to review this information yearly.
Permission and Insurance Coverage in North Carolina
In most cases, your auto insurance follows your car, not the driver. That means if you give someone permission to use your vehicle, they are likely covered under your policy. The two main permissions that North Carolina recognizes are:
- Express permission. You tell the person, verbally or explicitly, that they can drive your car.
- Implied permission. Your actions, established relationship, or habits indicate permission.
When Your Insurance May Not Cover Another Driver
There are some exceptions under liability laws. These include:
- The driver was explicitly excluded from your policy. If you named someone as an excluded driver, your insurance won’t cover them. This is more common for teen drivers, high-risk drivers, and household members with a suspended license.
- The driver didn’t have permission. If someone takes your vehicle without your knowledge or consent, the insurance company may deny coverage.
- The driver is using the car for commercial purposes. Personal auto policies don’t always cover activities such as food delivery, rideshare driving, commercial hauling, and paid transportation services. If the driver causes an accident while doing any of these paid activities, the employer or rideshare insurance should take the claim over your personal coverage.
- The driver was committing a crime or driving impaired. There may be limited or no coverage if the driver was under the influence, fleeing law enforcement, or using the vehicle during a criminal offense.
North Carolina’s Permissive Use Rule
North Carolina operates under permissive use rules. That means drivers using your car with permission should be covered with the same liability as you. Insurers may apply reduced liability coverage in certain scenarios. Permissive use generally extends to:
- Family members
- Friends
- Coworkers
- House guests
- Anyone you allow to borrow your vehicle
Whose Insurance Pays First?
North Carolina follows a certain order when determining who pays insurance claims. The vehicle owner’s policy is generally the primary insurance for liability claims. The driver’s personal insurance should apply as secondary coverage. That usually depends on whether the damages exceed your policy limits, whether they have non-owner insurance, or whether they’re driving with permissive use.
Third, other supplemental policies apply. This includes rideshare coverage, employer insurance, or commercial policies. Understanding this hierarchy can help you sort through the aftermath of an accident involving a borrowed vehicle.
How Claims Work When Someone Else Is Driving Your Car
When someone else is driving your car and has an accident, there are certain steps you can take. They are:
- Determine whether the driver had permission. The insurer investigates if the driver had verbal, written, or implied permission.
- Establish fault. Under North Carolina’s contributory negligence laws, any degree of contributing fault could prevent recovery of damages depending on the circumstances of the accident.
- Apply the appropriate policy. This may be one insurance company or multiple insurers.
- Evaluate damage and liability. This has both financial and legal consequences for you as the vehicle owner.
- Negotiate or litigate the claim. If the insurer or insurers dispute coverage or deny your claim, legal representation may be necessary.
Some common reasons for a dispute over your claim include policy limits, the driver being partly at fault, or being blamed for negligent entrustment. You may also be denied if the vehicle was used for commercial purposes or for claims that resulted in serious injury or death.
Why Choose Us?
Proudly representing car accident victims throughout North Carolina, Grimes Yeoman, PLLC, focuses on legal strategies that keep your goals and needs in mind. We offer strong advocacy and compassionate support throughout the legal process.
FAQs
Can Someone Drive My Car if They Are Not on My Insurance in NC?
In most cases, someone who isn’t on your insurance policy can drive your car with permission. North Carolina auto insurance generally includes permissive use. This means your liability coverage follows the car and protects whoever is driving it. This doesn’t protect unlicensed drivers, household members not on your policy, or use of the car for commercial purposes.
What Happens if Someone Else Is Driving My Car and Gets in an Accident in NC?
If you allowed someone to drive your car and they got into an accident, your insurance would generally serve as the primary coverage. Your liability insurance should cover injuries or property damage. If they didn’t have permission to drive the car, the insurance may deny coverage.
What Happens if the Other Driver Isn’t Insured?
If the at-fault driver is uninsured, you can file a claim under your own coverage for an uninsured motorist. This is mandatory coverage in North Carolina. Across the U.S. in 2023, 15.4% of motorists were uninsured. Collision coverage may also help cover repair costs for your vehicle. You could try to file a legal claim against the other driver for costs, unless you were partially at fault for the accident. Proving fault is critical in these cases.
Does Insurance Follow the Car or Driver in North Carolina?
In North Carolina, insurance generally follows the car. If you give someone permission to drive your vehicle, your auto insurance becomes the primary insurance in the event of an accident. The driver’s insurance would be secondary. Hire a car accident lawyer from Grimes Yeoman, PLLC, to help you sort out the details in your specific circumstances.
Hire a Car Accident Lawyer
The aftermath of a car accident can be overwhelming. The dedicated car accident lawyers of Grimes Yeoman, PLLC, can gather evidence, negotiate with adjusters, and advocate for your interests.
If you’re wondering, “Can someone drive my car if they are not on my insurance in North Carolina?” our team can help you better understand the state’s car accident laws and how they affect your rights and obligations. Contact us to schedule a consultation today.
