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Your Auto Insurance and Other Drivers Operating Your Car – The Basics


Quick NJ Auto-Collision Answers by PRIME Insurance

Scenario #1

Your eighteen-year-old daughter recently got her driver’s license. Glad to have someone you can rely on for errands, you let her take the car to the grocer for a bottle of milk. As she backs out of the driveway, she hits the neighbor’s van that is parked on the curbside.

Is she covered under your policy?  

Standard auto insurance may automatically cover all drivers within your household. Generally speaking, however, you must add your daughter’s name to your policy to ensure coverage. It’s best to review your particular insurance and associated state laws with an experienced insurance agent before assuming anything about auto insurance or any other coverage.  

Related: how NJ auto insurance covered a new driver

Scenario # 2

Your twenty-year-old son is studying in a university abroad. Because auto insurance rates increase with each listed driver, you figure, why keep him on the policy needlessly during the school’s term? When your son returns for winter-break, he takes the car for a quick drive. Black ice contributes to a collision in which he is the responsible party.

Is your son covered under your policy because of the break in school?

Unfortunately, you (or him) will have to pay out of the pocket in this case. Once you took your son off your auto insurance policy, he became an ‘excluded driver’ and he is no longer included. For the coverage to be in effect, you should have called your agent to put him back on your policy for the duration of his visit with you.

Related: 7 autumn driving traps

Scenario #3

Your cousin is in a fix because his car is in the mechanic’s shop. He needs a car to go to the dentist. You lend him your car as a one-time favor. Following the dental procedure, he is the perpetuator of an accident with another vehicle.

Does your auto insurance cover this accident?

Giving permission for a non-household family member or friend to drive your car on occasion is allowed under the terms of a standard auto policy as ‘permissive use’. In the event your car is involved in an accident while this type of driver operates it, your insurance will perform as the primary insurance coverage, while the driver’s insurance will kick in if necessary as secondary insurance (aka excess insurance). However, some state laws allow for decreased coverage in regard to this type of instance.

Related: how much auto insurance is right for you?

NJ Auto insurance goes far beyond the basics. Educate yourself with the experts who are driven to provide excellent coverage.

PRIME Insurance is an experienced agencythat has won the admiration of the industry. We’ve been presented with numerous awards and been appointed to conduct direct business with more than 40 of the leading companies - big names such as ACE, ASI, ASSURANT, CHUBB, FOREMOST, Interboro, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, UPC, ZURICH and so on.

PRIME Insurance provides all forms of nationwide coverage, including NJ coastal insurance, NJ cheap auto insurance, low quote commercial umbrella insurance NJ, flood insurance, NJ renters insurance, NJ homeowners insurance, NJ bonds, NJ workers comp, NJ life insurance and more - all at competitively lowest quotes. We invite you to experience the PRIME difference by visiting us on our online insurance website; emailing us at PRIME [at] primeins [dot] com, or by calling us at 732-886-5751!

DMV.ORG and contributed to this article


You own a car and you have NJ car insurance. Do you know the rules about other drivers operating your car? Let PRIME Insurance Agency give you a quick primer to the basics of coverage.


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