When your car is hit, the other driver’s insurance carrier will pay for your losses losses. The insurance company will pay this compensation irrespective of who was driving your car. So you can get paid for your losses by the other driver’s insurance company up to the limit of his policy.Whether you were driving or some one else you are entitled to get the insurance cover. If the friend who was driving the car with your permission and is at fault you as the owner of the vehicle is responsible for the damages resulting from the accident. Your insurance company will effect both liability and collision coverage of your policy. If your policy does not have exclusion of drivers other than the owner, your insurance company will cover this loss.
The insurance policies are generally intended to protect the vehicle owner as well as the lender or financier of the vehicle either lending institutions like banks or individuals. This coverage is applicable if your vehicle was not at fault. If your vehicle was found to be at fault then your deductible will come to effect first and the remaining loss would be covered by your insurance policy.
An increase in the rate of your auto insurance is a possibility if your friend was at fault in this case. If your friend is insured on your auto insurance policy she gets the cover. For the at fault accident her liability insurance will also cover the expenses.
But it is not always true that the vehicle is insured and not the driver. It is possible that some insurers will cover this loss and some others may not. In that case the insurance company will clearly mention in your policy that if your vehicle is driven by someone else the insurer will not cover any damage to your vehicle.
It would be better to allow only people who have auto insurance to drive your car. The friend’s auto insurance policy will cover the losses first and your policy will cover the remaining if it is over and above the limits of your friend’s policy. It is therefore better to ensure that you have comprehensive and collision coverage in your policy that includes another driver listed in the policy. With this policy you can make a claim for any damages to your vehicle when involved in an accident while driven by your friend if the friend is not at fault.
In essence your auto insurance policy will cover anyone who drivers your car provided the friend has your permission to drive your car. The friend must have a valid driver’s license it does not matter whose fault it is. You incur the deductible and the rate of your auto insurance may go up depending on the details of the accident.