Borrowing a Car – Who Is Covered?
There are times when you need to borrow a car from a friend, or, when a friend borrows a car from you. But what if an accident happens if you are driving your friend’s car? Whose auto insurance is going to cover the damage – yours or your friend’s?
Most people loan cars to others with the assumption that their auto insurance coverage will automatically transfer to the person who is borrowing the car. In general, auto insurance policies cover the sporadic sharing of cars between friends – however, before borrowing a car or loaning yours out, check your auto insurance policy to be sure. Sometimes there are specific insurance policy conditions that relate to permissive user guidelines and you are better off knowing what these conditions are before sharing a vehicle.
You should also check who is covered under your auto insurance policy – for instance, it’s possible that some drivers are excluded under your policy. To get the best information, contact your auto insurance agent or company to ask details on their guidelines for lending others a car. You should not assume that drivers are automatically covered if they do not live in your household. It’s always best to contact your insurer if you have any questions or doubts about your coverage or the rules of your policy.
NOTE: The purpose of this article is to provide general information on the law, which is subject to change. If you have a specific legal problem, you may want to consult your lawyer. For any auto insurance related questions, you may wish to consult your insurance company or insurance agent. This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.