Tossing someone your keys and letting them borrow your car should never be as casual as it sounds. When you let someone borrow your car, in most cases you are also letting them borrow your Car Insurance as well! This is not only defined by your policy coverage but also is the state law. That being said, you don’t need insurance when you borrow a car because in most states, insurance coverage follows the vehicle. While this does provide you with car insurance for a borrowed car, it does so under the terms of the other person’s policy and not yours.
Lending Your Vehicle to Someone
Letting someone borrow your vehicle should never be taken lightly. You need to able to trust that person because any damage they cause will affect your Car Insurance rates. Make sure the person who borrows your car is responsible, and they are not using it for illegal or dangerous reasons.
Never let someone drive your car that has a suspended license or has been drinking! If they are in an accident, it is your insurance that has to pay for the damages caused, and your premiums that will increase dramatically. If your insurance liability limits are insufficient to pay for the damages and injuries caused by this driver and it was found that you allowed them to use your car, you could be held legally liable for additional money needed to make the other party whole. Further, you could face criminal charges for allowing a dangerous driver to use your car.
TIP: Never let someone drive your car that you have knowledge has a suspended license or has been drinking. If they are involved in an accident, you could be sued, be forced to pay for the cost of the accident, or face criminal charges. If someone who is borrowing your car gets in an accident and you are sued, contact an experienced auto accident attorney to help understand your liability.
It is important to realize that your insurance company bases your premium not only on your car, but on the primary driver of that car. If someone else starts driving your car on a regular basis (more than just occasionally) contact your insurance company and have them added to your policy. Be aware that adding someone to your insurance policy can change your rates.
If your insurer finds out that you are no longer the primary driver, or that you are insuring a car for someone else to drive, they may deny your car insurance claim based on you providing false information at the time of your application
Can You Drive Someone Else’s Car?
Likewise, when you borrow a car, you will borrow their car insurance as well. While this means you have car insurance when borrowing a car, it does not mean that you are fully protected. You need to know the insurance coverage of the other person before making a decision to drive a borrowed car.
TIP: Beware of driving someone’s car if he or she has little or no insurance as your policy could be triggered once their limits are exhausted.