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.
Because there are so many different types of car insurance policies, the different levels of coverage and different rules about lending your car out can vary widely depending on the individual structure of a policy. That being said, it is almost universally true that there are a great many situations where a borrowed car will be covered by insurance and there are also many situations where it will not be covered. It is always a good idea to get in touch with your car insurer to find out what the exact rules for your policy when it comes to this issue are, that way you can know before you let a friend behind the wheel.
In some situations your car insurance will pay to cover the damage done to your car and to another in the event of an accident if they are at fault. There are also cases where only those listed on your insurance policy are allowed to drive the car and if anyone else is driving it, the car insurance becomes practically void and will not cover damages. In no-fault states these different scenarios become even more blurry since they will consider certain types of car accidents to be no-ones fault and will pay no matter what.
Outside of the specific details of different insurance companies and their policies, a 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 belongs to you. This means you can be taken to court and asked to pay damages and medical bills if your insurance doesn't cover them.
Fault can also at times apply to the owner of a vehicle regardless of the driver of a car in an accident. In some circumstances, it can be said that when you lend out your car you are also lending out your car insurance. This means you are putting yourself at risk to have your rates raised or have your policy cancelled if something terrible happens. Regardless of who is driving, your insurance will find out about an incident and respond according to their practices and policies.
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.
The best rule of thumb is to check with your insurance company and find out the rules for you and your car and your policy before you lend it out!
Because there are so many different types of car insurance policies, the different levels of coverage and different rules about lending your car out can vary widely depending on the individual structure of a policy. That being said, it is almost universally true that there are a great many situations where a borrowed car will be covered by insurance and there are also many situations where it will not be covered. It is always a good idea to get in touch with your car insurer to find out what the exact rules for your policy when it comes to this issue are, that way you can know before you let a friend behind the wheel.
In some situations your car insurance will pay to cover the damage done to your car and to another in the event of an accident if they are at fault. There are also cases where only those listed on your insurance policy are allowed to drive the car and if anyone else is driving it, the car insurance becomes practically void and will not cover damages. In no-fault states these different scenarios become even more blurry since they will consider certain types of car accidents to be no-ones fault and will pay no matter what.
Outside of the specific details of different insurance companies and their policies, a 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 belongs to you. This means you can be taken to court and asked to pay damages and medical bills if your insurance doesn't cover them.
Fault can also at times apply to the owner of a vehicle regardless of the driver of a car in an accident. In some circumstances, it can be said that when you lend out your car you are also lending out your car insurance. This means you are putting yourself at risk to have your rates raised or have your policy cancelled if something terrible happens. Regardless of who is driving, your insurance will find out about an incident and respond according to their practices and policies.
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.
The best rule of thumb is to check with your insurance company and find out the rules for you and your car and your policy before you lend it out!
About the Author:
About the Author: Leigh Jackson is a writer and journalist for the Texas insurance industry. Jackson helps potential insurance buyers understand the complicated insurance industry and find cheap Texas car insurance policies and no credit check car insurance policies.
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