Between the difficult economy and a shortage of both new and used cars, many Americans are sharing vehicles with both friends and family members. But how are you insured if you share a car or truck with someone else? Here are a few key answers to your auto insurance questions. 

Are All Drivers Covered?

In general, auto insurance policies travel with either the driver or the vehicle. This means that if you give permission to another person to drive your car, the coverage is extended to them. Permission is given either by naming the person in the policy as an authorized driver or by giving them verbal permission. 

What about when you borrow another person's car? The same rules generally apply, so your coverage depends on what permission you have been given. However, this depends on the specific wording of their insurance policy.

What Pitfalls Might You Face?

Some common exceptions to these guidelines can trip up drivers sharing vehicles. First, neither of you may generally use the vehicle for commercial purposes. If your buddy borrows your car to work at ride-sharing, both them and the car may not be covered. 

In addition, each insurance carrier has its own limitations, inclusions, and exclusions when covering a driver or car not named in its policy. The full liability coverage may not extend to other drivers' actions, for instance. 

Finally, the policy may require that members of the household be named drivers. If a driver is considered a member of your household but is not named on your policy, they may not be fully covered. 

How Can You Be Sure of Coverage?

Take a few key steps to ensure that both a shared vehicle and shared drivers are fully insured. Find out from your insurance agent what constitutes a member of your household so you don't leave anyone out. 

Second, come up with some ground rules for sharing vehicles. Only share with a driver you trust. Be clear about what may or may not be done, such as using the car for business or allowing other drivers to use the car. And be sure all drivers are properly licensed and insured. 

Finally, address any concerns with your auto insurance agent. For instance, ask about supplemental insurance if someone may use the car for business. If you worry that they are a more reckless driver, increase policy limits or clarify what constitutes permission under policy terms. 

Where Should You Start?

The best place for anyone sharing a vehicle to begin is meeting with a quality car insurance company in their state. No matter what your concerns are, professional guidance will make sure you are always covered and your finances are always protected. 

For more information, contact a local car insurance company.