What happens when I loan my car to someone?
In California, vehicle owners are generally responsible for damages if they allow friends or relatives to borrow their vehicle. That means it will not cover damages the excluded driver causes. Whether you are liable for damages depends on the situation and should be discussed with a licensed attorney.
Can you lend a car to a friend?
If you lend your car to a friend or family member you may not take into account the terms of your car insurance policy; however, if you don’t, you may be taking a gamble. Some insurance companies have strict rules about whom should be added to the list of drivers on your car insurance.
Someone with permissive use: If you loaned out your car to a friend or neighbor, your ERIE policy generally will cover them – as long as you gave your permission. If they are a regular and repeated user of the car, they should also have coverage. The only exception is if a driver has been specifically excluded on your policy.
What happens if I loan my car to someone?
But just because someone is covered doesn’t mean loaning your car is risk-free. Here’s the good news: If the driver falls into one of the three categories above, and the loss is covered under the terms of your policy, your insurance can help pay for the damage – even if you weren’t the one driving.
What’s the best way to sell a car and pay off your loan?
That’s why it’s best to pay off your car loan before selling. You have 2 main options if you want to sell a financed car. With both options, you’re still responsible for paying off the loan. Sell it to a private individual. You can either pay off the car loan first or use the profits to pay off your lender. Trade it in at a dealership.
When to use ” lend ” instead of ” loan “?
You should note that it is used only literally; lend is the verb used for figurative expressions, such as “lending a hand” or “lending enchantment.” Please could you loan me some money. I’ll loan him the car if he really needs it. When can “lend” be used instead of “loan”?
What happens when you lend a car to a friend?
“When you lend someone your car, you lend them your insurance,” says Lynne McChristian, a spokeswoman for the Insurance Information Institute. Car insurance follows the vehicle, not the driver. Although your friend’s auto insurance might kick in eventually, your policy is primary — and filing a claim could cause your rate to go up.
Can You loan your car to someone who doesnt live with you?
In many cases, everyone in the same household is actually required to be included on the vehicle’s insurance policy. For those friends or family members who don’t live with you but use your car every once in a while – you can typically loan them your vehicle and not worry that they’ll be covered.
What happens if I loan out my car to another driver?
In reality, car insurance follows the vehicle. This means that if you loan out your car to driver who is not excluded on your policy (see “When Could You Be Held Liable?” below), your car insurance is the primary coverage that would apply if a crash occurred. The driver’s insurance would act as secondary (or excess) insurance.
Do you have to have insurance when you lend a car?
The short answer: You would. “When you lend someone your car, you lend them your insurance,” says Lynne McChristian, a spokeswoman for the Insurance Information Institute. Car insurance follows the vehicle, not the driver.