Can u drive someone elses car without insurance

The answer may be obvious to many but others may still ponder. What if you drive around without car insurance? And why would you risk it? Of course, trying to dodge cost is a major factor for many with some high risk motorists and young, inexperienced drivers having to fork out thousands for car insurance. 

The cost of not having car insurance and getting into an accident, however, is even worse. You could be paying out even higher amounts, have your licence revoked or even worse….serve jail time.

Here’s why it’s not worth risking.

Pay a hefty fine

Get caught and the Singapore Motor Vehicles (Third-Party Risks and Compensation) Act applies in which it stipulates that someone found driving a motor vehicle in Singapore without insurance coverage will be guilty of an offence and liable upon conviction to a fine of up to S$1,000, imprisonment for up to 3 months, or both.

Driver’s licence taken away

If convicted, you could also be disqualified from holding or obtaining a driving licence for 12 months past the date of your conviction. 

Spend time in jail

The law also stipulates that you can be imprisoned for up to 3 months (on top of paying a fine). 

However, there are some minor exceptions to the rule. 

You may not be found guilty of this offence if: 1) if the car does not belong to you or is in your possession under a contract of hiring or a loan; 2) you genuinely did not realise, nor had any reason to believe, that a valid insurance policy was not in effect.

What happens if you have a car accident?

If you’re involved in a car accident while driving uninsured, you’ll have to pay for repairing or replacing your car, any broken personal possessions and any medical expenses yourself.

That in itself could lead to financial ruin. But added to that, you could also find yourself facing a lawsuit from the third party and having to pay for any losses, damages and medical expenses for the third party as well. Ultimately, this could cost you many thousands of dollars that would otherwise have been paid for by your insurer.

Fronting

Some people with a less-than-stellar driving record might be tempted to avoid paying the full cost of the higher premium that goes along with being classified as a "high-risk driver" by engaging in a practice known as "fronting." Fronting is when you attempt to get a cheaper rate on your car insurance by using the details of a different, presumably better, driving profile. In short, it's a form of fraud. If you attempt this strategy to avoid paying higher car insurance premiums, you could find your claims go unpaid and your policies cancelled entirely, especially if you get in an accident. 

Parting thoughts

Consumer researchers ValueChampion added: “At the end of the day, while nobody enjoys paying for car insurance, attempting to avoid it by breaking the law is likely to cost you much more than your premium would, in both time and money. There are ways, however, to make sure you're not paying any more than you need to on your premium.”

Check out Budget Direct Insurance, the insurer that won’t allow you to fork out any more than you need to. 

It depends on the other person's insurance. Some types of insurance cover guest drivers. It also makes a difference if you're a family member and living in the same household as the car owner.

Does insurance follow the car or the driver?

This depends on your coverage type. In general, the insurance follows the car. Below we list the two main types of coverage:

• Liability Insurance: All states, except New Hampshire, require liability insurance. Liability insurance follows the driver, not the car.

Keep in mind, that liability insurance usually only covers temporary car use. If you plan to borrow someone else's car for an extended period of time, your liability insurance may not cover you. If you plan to get liability insurance ask the insurer how their specific policy works.

• Comprehensive and Collision Insurance: These types of insurance follow the car, not the driver. If a car borrower gets into an accident, the car's damage is covered under the owner's insurance. The owner needs to add you to their list of drivers to their policy to make sure you're covered in case of injury.

This only applies when borrowing a friend or family member's car. If you're borrowing a rental or dealership car, liability insurance is enough.

Options for the car owner when letting someone borrow their car

• Permissive Use: Due to the "omnibus clause" family members, spouses, and children are considered permissive use drivers. People of close relation living in the same house may use the car with the insured's permission, unless the insured specifically lists them as "non-permissive use" drivers. As always, have the car owner check with their insurer beforehand.

Note that in some states, permissive drivers receive less coverage.

• Listing Drivers On Their Policy: The insured may also list people on their policy who are allowed to use their vehicle. This ensures coverage under that policy. Even if you meet the permissive use requirement, it's good to have them list you specifically. This is especially helpful if you plan to borrow the insured's car often and for an extended period of time.

Non-owner car insurance is a solution

If you don't have your own car but plan to use someone else's often, consider non-owner car insurance. This type of policy provides liability coverage for drivers who don't have their own vehicle. It normally includes bodily injury and property damage liability. It might even include medical coverage and uninsured motorist coverage.

Check with potential insurers on what their non-owner car policy covers. A non-owner policy does not include comprehensive, collision, rental reimbursement, or towing coverage.

Contact Progressive for an easy quote, today. You can get more info and explore what's right for you.

Tips for borrowing someone else's car

A few tips to remember before borrowing someone else's car:

• Ask the insured driver to check their policy for terms involved with loaning their car to you.
• Make sure you have a valid driver's license before borrowing someone's car.
• Be certain that the insured has their registration and insurance information in the car's glove box.
• If you plan to use the insured's car habitually, ask them to add you to their policy as a driver. This protects you both.

Don't be irresponsible, get insurance

Being uninsured is a temporary situation. If you plan to drive, even if you don't have your own vehicle, the responsible action is to get yourself insured. This may mean basic liability insurance or non-owner car insurance.