In most states, including North Dakota, car insurance follows the car and not the driver, so when you give someone permission to drive your car, you’re also lending them your car insurance.
Primary Coverage vs. Secondary Coverage
When you lend a friend your car, your insurance will generally cover them as a permissive user unless:
Your insurance provides primary coverage, while your friend’s car insurance offers secondary coverage, meaning it will step in if your policy limits are exhausted. The circumstances surrounding the accident will determine coverage:
Named Driver Exclusions
While a few states don’t allow driver exclusions, North Dakota law permits the exclusion of specific drivers from a policy, and also allows the company to issue a policy with minimum limits of coverage for a specified driver while maintaining higher limits for all other drivers. A company is not required to exclude a driver, but may do so according to its underwriting program.
If you have questions about car insurance and accident coverage, contact a personal injury lawyer at O’Keeffe O’Brien Lyson Attorneys online, or call 701-235-8000 or 877-235-8002 (toll-free) today.
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