Insurance customers often ask their provider questions about friends borrowing their car and who is liable for any damages incurred during the period when the car is lent out. Customers want to know both who is responsible to pay for it and how it might affect their insurance rates if there is an incident. This is not a simply question and the answer varies depending on the specifics of an individuals policy.
Since there exist such a wide variety of types of car insurance policies, the different types and levels of coverage as well as the rules about letting friends borrow your car can be vastly different depending on the individual structure of your specific insurance policy. There are both a great many situations where a borrowed car will be covered by insurance and where it will not be covered. It is always a smart policy contact your car insurer to find out what the exact rules for your auto insurance policy is when it comes to lending out your car. This way you can be sure you know what will happen if there is an incident with a friend behind the wheel.
There are some insurance situations where your insurance will pay for the necessary benefits, but the driver's insurance can also come into play. There are also situations where, if you do not have someone listed on your policy for the purpose of driving your car, then your insurance may not cover him or her and you may have to rely on any applicable insurance of the driver instead. This will also be different in states that have no-fault insurance, which can further complicate this kind of manner.
Understanding that there are many different specifics and details of policies and providers, the common rule should be that if you lend out your car and the person driving gets in an accident and they are injured or they injure someone else, you can always be held liable because the vehicle ultimately belongs to you. What this means is that you will be held responsible to pay for any medical or other damages incurred and the injured parties can take you to court for any fees that aren't covered by you or your insurance company.
Regardless of the driver of a car in an accident, fault can be said to apply to the owner of a vehicle. Because of this, you might consider a good rule of thumb to be that when you lend out your car you also lend out your insurance and the potential to have it raised or cancelled in the event of reckless or dangerous driving. No matter who is driving, your insurance will find out about an incident and respond accordingly.
There are a few exceptions when it comes to fault. If you lent your car to a friend and it was later stolen, you aren't responsible for damage that occurred during the theft. If anyone takes your car without permission, including family members who take the car for a joyride without asking, it's the driver's responsibility and not the owner's.
Another exception applies to valets. If your car is valet parked at a hotel or restaurant and incurs some damage while in the care of the valet company, they, not your insurance, are held responsible for the damages and are liable to pay to fix them.
It is best to call and talk with your auto insurance representative to find out the specifics and details of your policy before you lend your car out to a friend. This way you can be sure that you are covered no matter what.
Since there exist such a wide variety of types of car insurance policies, the different types and levels of coverage as well as the rules about letting friends borrow your car can be vastly different depending on the individual structure of your specific insurance policy. There are both a great many situations where a borrowed car will be covered by insurance and where it will not be covered. It is always a smart policy contact your car insurer to find out what the exact rules for your auto insurance policy is when it comes to lending out your car. This way you can be sure you know what will happen if there is an incident with a friend behind the wheel.
There are some insurance situations where your insurance will pay for the necessary benefits, but the driver's insurance can also come into play. There are also situations where, if you do not have someone listed on your policy for the purpose of driving your car, then your insurance may not cover him or her and you may have to rely on any applicable insurance of the driver instead. This will also be different in states that have no-fault insurance, which can further complicate this kind of manner.
Understanding that there are many different specifics and details of policies and providers, the common rule should be that if you lend out your car and the person driving gets in an accident and they are injured or they injure someone else, you can always be held liable because the vehicle ultimately belongs to you. What this means is that you will be held responsible to pay for any medical or other damages incurred and the injured parties can take you to court for any fees that aren't covered by you or your insurance company.
Regardless of the driver of a car in an accident, fault can be said to apply to the owner of a vehicle. Because of this, you might consider a good rule of thumb to be that when you lend out your car you also lend out your insurance and the potential to have it raised or cancelled in the event of reckless or dangerous driving. No matter who is driving, your insurance will find out about an incident and respond accordingly.
There are a few exceptions when it comes to fault. If you lent your car to a friend and it was later stolen, you aren't responsible for damage that occurred during the theft. If anyone takes your car without permission, including family members who take the car for a joyride without asking, it's the driver's responsibility and not the owner's.
Another exception applies to valets. If your car is valet parked at a hotel or restaurant and incurs some damage while in the care of the valet company, they, not your insurance, are held responsible for the damages and are liable to pay to fix them.
It is best to call and talk with your auto insurance representative to find out the specifics and details of your policy before you lend your car out to a friend. This way you can be sure that you are covered no matter what.
About the Author:
About the Author: Leigh Jackson is a writer whose work focuses on the Texas insurance industry. Jackson helps insurance purchasers understand the complicated industry and find cheap Texas car insurance policies and no credit check car insurance policies.
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