Should I let my friend borrow my car?
Contrary to popular belief, not every traffic accident is automatically fully covered by your insurance. Thereโs always a chance that the damage caused by an accident will exceed the limits on the policy. Also, there are specific drivers listed on your policy. If you know that someone who is not related to you will be borrowing your car often, you must include them as an additional driver. Life happens, and an exigent instance may arise that a friend may need to borrow your car. But what happens if a permissive use driver gets into an accident while driving your car?
Insurance follows the car, not the driver. The liability portion of the insurance which belongs to the owner of the car covers two parts: injuries caused to another party, and damages caused to anotherโs property. Keep in mind that your policy always has maximum limits that cannot be surpassed. If the accident that took place was detrimental, your limits may not be enough. At this point, itโs possible that the permissive driverโs policy will be used to as secondary coverage to help pay for the remaining fees. Thatโs only if the friend driving your car has insurance.
If an uninsured friend needs to borrow your car, in most cases, you may want to think twice before granting him or her permission. You would be risking the possibility of this friend causing a terrible accident and harming multiple people. If the damage is bad enough to exceed your maximum liability coverage on your policy, those who were injured in the event can hire a lawyer to ensure the injuries are paid for. Then, the lawyer has the opportunity to come after you for your assets in order to reimburse the accuser for what you owe. You are now responsible to pay for another partyโs injuries because you allowed your uninsured friend to borrow your car.
It may not be definite that your friend would wreck your car, but the risk is absolutely always there. Regardless of how bad the damage is, you are now liable for the damage of the accident and obligated to file a claim. At the very least, you will be paying more in your car insurance after filing a claim. Itโs important to think about the consequences of your decisions before allowing a friend to drive your car.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Beyond the Funeral: 9 Reasons Why You Need More Life Insurance Than You Think
Life Insurance: Not Just for Buryin’! Unexpected Costs You Never Knew Were Covered
Life Insurance Myths Busted: Unveiling the Simple Truths Behind Financial Security
Considering life insurance but confused by the myths? We clear the air on common misconceptions and show you how to get simple, affordable coverage.
The Farewell Financial: Planning a Peaceful Goodbye
Beyond Goodbyes: A Guide to Navigating Funeral Costs and Life Insurance
Why Life Insurance Matters for Businesses
Death and the Business Owner: How Life Insurance Can Secure Your Legacy
Beyond the Grave: Burial Insurance vs. Life Insurance Explained
Don’t Be Buried by Confusion: Understanding Burial and Life Insurance
From Bronze Age to Boomers: How Life Expectancy Went From Meh to Magnificent
How Long Will You Live? A Look at Life Expectancy Throughout History (and Why You Might Need Life Insurance)
Beyond “My Beloved Spouse”: A Guide to Choosing Your Life Insurance Beneficiary
The Beneficiary Bunch: Understanding Your Options
Life on the Edge? How Your Hobbies Can Affect Your Life Insurance Rates
Beyond the Premium: Unveiling the Unexpected Links Between Hobbies and Life Insurance
Unveiling the Different Players (and Why We’re Your Guide!)
Insurance Companies: Not All Created Equal! Find Your Perfect Match with Our Help
Cracking the Code: Cash Value, Loan Value, Surrender Value – It’s All in the Life Insurance Policy!
Beyond the Death Benefit: Unlocking the Hidden Gems of Your Life Insurance Policy