What happens if you let a friend borrow your car?
When you allow a friend, family member or babysitter to borrow your vehicle, your insurance takes primary coverage. Even if the person borrowing your car has the best coverage available, your insurance covers your vehicle. The borrower’s insurance could potentially provide backup coverage in certain situations.
What factors should you consider before letting someone borrow your car?
For example, letting your best friend with insurance coverage borrow your car is much less of a risk than someone uninsured living in another state borrow it….Things to Consider Before Letting Someone Borrow Your Car
- Has a valid driver’s license.
- Has their own insurance coverage.
- Lives in a different state.
What happens if you let someone borrow your car and they don’t return it?
If the “borrower” fails to return the car after the lender makes numerous obvious attempts to get it back, theft has officially been committed. Borrowing can also become theft if the borrower sells the vehicle while it’s in their possession. In this situation, the borrower is treating the car as their own.
Can someone else drive my car in an emergency?
It might be an emergency or you may have permission from the car owner, but that doesn’t mean it’s legal. Unless you’re a ‘named driver’ on their car insurance, you almost certainly won’t be insured. And both the driver and car owner can run into trouble if caught without the necessary cover.
Should you let a friend borrow your car?
We recommend not lending your car to someone who doesn’t have car insurance of their own because if they cause an accident in your car, then you would be liable for the costs that exceed your coverage limit.
Can I let my friend drive my car?
Usually, yes — your car insurance coverage should extend to anyone else driving your car. So if you lend your car to your best friend, your sister or even your second cousin, your insurance is most often the insurance that will pay in the event of an accident.
Can someone not on your insurance drive your car?
Usually, yes — your car insurance coverage should extend to anyone else driving your car. This means even if your friend, sister or cousin have the best coverage possible, it would usually be your auto insurance that’d be covering the damages if they were at-fault in an accident while driving your vehicle.
Can someone drive my car if they are not on my insurance USAA?
If I let someone borrow my vehicle, does my insurance cover them? Your policy covers anyone who has permission to use your vehicle, or reasonably believes they have permission to use it. If a driver regularly uses your vehicle for more than 60 days, you should add that driver on your policy.
Should I let my friend borrow my car?
People who often borrow your car might not be covered — because a regular driver of your car should be listed on your policy. To avoid this, consider listing on your policy any non-household members who occasionally borrow your car. If friends don’t have their own insurance, they could buy non-owner auto insurance.
What should I do if my friend borrows my car?
To avoid this, consider listing on your policy any non-household members who occasionally borrow your car. If friends don’t have their own insurance, they could buy non-owner auto insurance. If they cause an accident in your car, your liability insurance would still be primary and their non-owner insurance would pick up any remainder.
Who is liable if you loan your car to a friend?
Generally, if you loaned your car out to a friend or family member and that person is involved in an accident, your insurance company would be primarily responsible for covering the damages. However, there are certain situations where this may not be the case.
What happens if you let a friend use your car?
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. Before you decide to let someone use your wheels, consider what it could do to your finances.
What happens if you let your neighbor borrow your car?
“By far, the number one misconception about loaning out your vehicle is that if you let your neighbor borrow your car, an accident should go on his insurance because he was the one driving,” said Dave Freeman, vice president and regional underwriting officer at Erie Insurance.