Lending a Car to a Friend or Family
In our social world, many drivers have undoubtedly driven someone else’s car. However, people who lend their cars to friends or family always have some reservations about the liability they may incur. Many people often question whose insurance policy will cover a borrowed car. This involves a complicated answer that is primarily a case-by-case situation. The short answer is that auto insurance follows the car, not the driver.
Am I covered if I lend someone my car?
Depending on the rules of the individual policy, your insurance will most likely cover another driver; however, if you have given permission for another driver to operate your vehicle then you must accept that in many situations you may be held liable for an accident. All claims proceedings will be handled through your insurance, including paying the deductible and any possible rate increases. If your coverage limit has already been exceeded by the incident, then the driver’s insurance will be used as a secondary coverage to satisfy the difference.
Of course, if your friend or family borrowing the vehicle was not at fault for the accident then your insurance will not be affected. The at-fault party will be obligated to pay for any damages caused by the accident. Concurrently, if the driver of your vehicle was not given explicit permission to drive your car then the driver’s insurance policy will be considered the primary coverage.
Insurance policies are almost always full of caveats designed to allow insurance companies to easily deny coverage, especially in cases of dramatic injuries or deaths. Car accidents frequently cause severe, life-altering injuries. This is exactly the sort of thing an insurance company will try to deny covering. Make sure your coverage includes personal injury protection to keep yourself off the hook for these sorts of accidents.