Most of the time, yes, in the event of an accident, insurance costs will inevitably increase. Car insurance functions equally whether the owner is driving or someone else is doing so. Both parties’ insurance policies take effect, and premiums increase if there is an accident, regardless of whose party caused it. The result is a financial loss due to property damage and medical expenses.
Insurance policies typically cover medical expenses for drivers of other cars. However, depending on the auto insurance policy, coverage may change. In the end, the policyholder pays the deductible before the claim is reimbursed.
Additionally, a lot of insurance companies provide accident forgiveness. After an accident, this function can prevent rates from increasing. Although it is frequently an add-on, some businesses include it in the policy. If the driver of the car can avoid accidents for an extended period of time, the rates might not increase substantially or at all.
Whoever was driving the car at the time of the accident may result in decreased coverage, depending on the policy and the area. Therefore, if loaning out the vehicle is necessary, it’s crucial to identify the correct coverage options.