When you’re driving your own car, you know that you have auto insurance coverage in case of an accident or collision. However, what happens if you’re borrowing a car from a friend? Also, what if you loan your vehicle to someone else?
At the time, most people don’t even think about their insurance policy. Nevertheless, it will make a huge difference if something does happen, and you’re not the one behind the wheel. To help you have peace of mind, we at Bob Johnson Insurance want to shed some light on this issue.
The Vehicle is Insured, Not Necessarily the Person
For the most part, the coverage you have is specific to your car, not the person driving it. Therefore, if your friend is involved in an accident and is not injured, your policy should protect both of you. While the insurance company will want to verify that you gave permission beforehand, there shouldn’t be any issues.
That being said, if you don’t have sufficient coverage for the accident, then the insurance of the person borrowing the car may come into effect. Even though they weren’t driving their own vehicle, their policy may cover any gaps in your insurance.
Please keep in mind that most insurance companies typically only permit you to loan your vehicle to one person at a time. If the person borrowing your car lends it to someone else without your knowledge, your coverage may become null and void. Therefore, you want to be sure you trust the person borrowing your car.
Denial of Coverage
Other instances in which a policy may not pay out include if the borrower of a vehicle engages in criminal or negligent activity with the car. Also, if the insurance company believes that he or she was trying to commit fraud, the plan may not cover any damages.
If you have a friend who borrows your car regularly (or if you are that friend), it’s usually a good idea to get him or her added to your policy. This way, other circumstances (such as personal injury) can be covered, which will give both of you peace of mind.
Overall, as long as the situation is considered “normal,” there shouldn’t be any issues with a friend borrowing your car (or vice versa). However, if you’re still not sure, feel free to contact your agent at Bob Johnson Insurance for further details.