In most private passenger auto policies when someone besides the vehicle owner drives the owner’s vehicle with permission, the owner’s policy pays first (primary) if their vehicle is involved in an accident and the driver is found to be legally liable (at fault). Named non-owner policies generally pay after (secondary) the vehicle’s owner’s policy has paid out all of its limits and there is still money owed (damages) to the other vehicle’s owner.
With this policy, the named non-owner policy still pays secondary to any other vehicle owner’s policy EXCEPT when the youth has permission to drive a vehicle owned by their immediate care provider. If a youth is driving the vehicle of his/her care provider, the claim is paid by both policies based on a pro/rata share of the combined total limits of liability.
For example: You reside with a foster family who has a car insured at limits of $25,000 Bodily Injury (BI) and $10,000 Property Damage (PD). You don’t own a car but you have regular access and occasionally drive the family’s auto. You’re involved in an accident and found liable for bodily injury to the other driver. The damages awarded to the injured party exceed the family’s personal auto liability limits.
Outcome #1 (You have no insurance): The family’s insurance would pay for the damages up to the liability limits specified in their policy, in this case $25,000 per person. Any additional damages would be the responsibility of you and/or the family and would have to be paid out-of-pocket. Additionally, the family’s insurance company would require them to list you as a driver and pay additional premium since you are a member of the household and allowed regular access to their auto.
Outcome #2 (You have a Named Non-Owner Policy for Youth in State Custody): You and your foster family’s insurance would cover damages jointly based on each policy’s share of the total limits available.
Example: Foster family BI limits of liability = $25,000 Youth BI limits = $25,000 Total limits available to pay claim = $50,000
In this example, each policy contributes 50 percent of the total limits available. Each insured would pay 50 percent of a claim for damages up to $50,000. The foster family’s policy would not have to pay their entire $25,000 limit before the youth’s policy pays. Any damages that exceed $50,000 would have to be paid out-of-pocket by you and /or the foster family.