QUESTION: Does my auto insurance cover me when I drive another vehicle? I am planning to use my sister's car. She is at present overseas. Also, what would be the situation if I were to rent a car either here or in Florida? Would this be covered by my policy?
S.B., Kingston 5.
ANSWER: Most motor policies are linked to the vehicle not the driver. Vehicle A's insurance does not apply always to vehicle B. In some cases a part of the coverage may attach. What happens in a particular situation depends on the terms of the contract. It is therefore not possible to give you a short answer to your first question.
Eleven of the 12 companies that write motor insurance here do not normally allow the driving of other vehicles. In other words, coverage is limited to just one vehicle. This measure was introduced a few years ago. Insurers realised that they were paying many claims under the 'driving other car' extension. The restriction has saved millions of dollars. Some would say that premiums are now lower because of this.
Coverage was restricted when all insurers linked it to the insured driver. In other words, only third party liability protection was available. Collision damage coverage was excluded. This is the basis on which coverage is permitted by the one company that now offers this extra. Look at your policy or certificate of insurance to find out if coverage applies when you drive vehicles other than your own.
Your sister's insurance may (note carefully) provide protection when you drive her car. Once again, this depends on the wording of her policy. Other persons are allowed to drive provided that (a) they have the owner's permission and (b) they have the appropriate driving permit. If these conditions are complied with it is a 'slam dunk'. The owner's insurance may limit the number of drivers in other cases. When this happens the policy (or insurance certificate) will say so. Most insurers usually will agree to increase the number of drivers without too much hassle.
Rented or hired vehicles are excluded by the average motor policy. This means plain and simple that no coverage whatsoever is afforded even when the 'driving other cars' extension applies. This class of vehicles is expected to carry its own insurance. Once again the principle that insurance is linked to the vehicle not the driver applies.
Motor policies are designed to suit local conditions. For this reason in spite of all the talk about the CARICOM Single Market and Economy (CSME) a motor policy issued in Jamaica provides no protection when the driver (or the car) is in Trinidad, Barbados or, for that matter, in South Florida.
Coverage does not extend beyond the borders of the country in which the policy was issued. Persons who operate motor vehicles in countries other than Jamaica are expected to make separate insurance arrangements.
To summarise: check the policy, insurance provider or intermediary before you borrow another person's vehicle. In the case of a rented car make sure that you find out if it is insured before signing the rental agreement.
Cedric E. Stephens provides independent information and advice about the management of risks and insurance. If you need free information or counsel to help you solve a problem write to the Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
