I Let My Friend Borrow My Car, Are They Covered?
Almost everyone has been in a situation where their friend or relative asks to use their car. Or, they themselves need to drive someone else’s car. You think, is this a good idea? What if they get in an accident? Are they covered under my insurance or their insurance? Or are they covered at all? These are all common but important questions to know answers to.
Well, they are not covered under their insurance. Car insurance follows your car, specifically the comprehensive and collision insurance. This means that if a friend or relative gets into an accident in your car, you yourself are liable to pay for the costs and the premiums that will be affected. The only way a friend’s insurance could possibly come into play is if their insurance will cover personal liability, after your own policy limits are reached. If it is a bad accident, it could end up costing you hundreds or thousands of dollars. Especially, if the party driving the car is uninsured.
With family, if you give permission to use the car, your insurance policy should allow this type of permissive use. Friends are covered under limited coverage usually, they might get different limits. If you have someone who drives your car under a semi-regular to regular basis, it is best to add them to your insurance policy.
However, every insurance policy and the language in them are different. It is important to clarify with your insurance agent who is and isn’t covered to drive your car. You should also clarify what kind of insurance you really need for your situation.
If someone else is liable in an accident with your car when a friend is driving, the at-fault party is responsible for the damages and costs associated with the accident like normal. So, it’s okay to let other people drive your car, just make sure they have insurance and you are willing to accept some financial responsibility if they cause an accident.